Internal audit periodic reports

Internal audit periodic reports

Internal audit periodical reports, internal audit periodical reports have not been submitted to the non-executive review unit as much as reporting the results of each audit.

However, after the publication of Kodberi’s report in 1992, it has become more common to submit internal audit reports to the audit committee.

Although the reports received by audit committees have different forms.

The scope of this variety in the way of reporting to the audit committees is from the reflection of all internal audit reports to a simple summary about the performance of the internal audit without referring to the results of the findings or suggestions provided by the internal audit.

Some organizations still do not have a separate audit committee, in such cases the internal audit can submit its report to the CEO of the main management committees or the board of directors.

The reports submitted to the audit committee or other committees of the board of directors do not necessarily contain the full text of all internal audit reports.

There are many reasons for this.

Internal audit reports are usually prepared for a specific audience or even a specific manager.

Internal audit reports mainly deal with operational details.

While the senior management of the organization and the non-executive review unit must pay attention to ensuring the efficiency of the internal control system and the achievement of the organization’s strategic and organizational goals.

Correct and efficient implementation of the internal control system and in cases where the internal audit believes that the said system is not working well.

Performing corrective actions on time should usually be the concern and attention of managers and non-executives of the organization.

If the full text of the internal audit reports is to be provided to the responsible and non-committed managers, it may become very difficult to establish a constructive working relationship between the internal audit and the executive managers.

In such cases, executives may show more resistance.

And the internal audit may face difficulties to further improve the internal control system.

Guidelines for periodic audit reports

Official and comprehensive guidelines for periodic audit reporting have been prepared and presented by a number of public sector institutions.

An example of formal guidance on periodic audit reporting

The Committee of Higher Education Institutions in 1992 has determined the following

The annual internal audit report to the board of directors of the educational institution should include the following:

Internal audit evaluation of the adequacy and efficiency of the internal control system and the degree of trust or reliance of the board of directors of the institution on it.

In providing this assurance of the scope of proceedings, any limitation in the scope of proceedings and any other factors affecting the quality of the assurance should be clearly described.

Comparing the work done with the planned audits and explaining the deviations from the previously approved plans

The extent of the institution’s internal audit needs that have been met.

Emphasis on that group of internal audit proposals that the management of the organization has not paid enough attention to

Reporting to the non-executive review unit

Members of the non-executive auditing unit (the board of directors of the audit committee or any other similar auditing unit) should not normally be involved in the findings or recommendations of the internal audit.

Rather, they should consider the comments provided by internal audit about the operations and systems under review.

The summary of these comments should be prepared along with the internal audit director’s explicit opinion about the adequacy of the internal control system and the overall state of the organization’s performance.

The members of the non-executive auditing unit should not be influenced by the opposing opinion of the internal auditors.

that the reasonable suggestions of the internal auditors to solve it have been accepted and implemented on time.

If major weaknesses are discovered in the internal control system, it should be reported to the non-executive review committee;

Because it can be a sign of the general weakness of the management of the part under consideration.

Audit findings that indicate similar and uniform weaknesses at all levels of the organization should also be reported to the non-executive review unit.

In cases where the internal audit unit is newly established.

The head of said unit can only comment on activities or systems.

which have been dealt with during the reporting period.

But during the period of the strategic audit plan, all systems and major activities of the organization should be reviewed.

In this case, the internal audit will be in a position to comment on the overall internal control system of the organization.

The assurance given to the non-executive auditing unit should be re-examined and confirmed by testing key controls or follow-up procedures on systems previously audited.

This work should be combined with the results of the new proceedings so that the opinion is made each year accordingly.

Internal audit should report only that group of specific findings from the audit performed to the non-executive review unit.

that the correctional and major proposals related to it have not been given enough attention by the management of the organization.

These suggestions can be described as cases where neglecting that organization or related unit prevents it from achieving its main goals.

Or it may cause significant losses to the organization in the form of financial abuse.

Adequate attention means that the reasonable suggestions provided by the internal case audit

Acceptance is placed.

And these offers are applied within a reasonable period of time.