Excellent internal audit reports are far more than just a listing of findings or a description of practices and procedures. They go beyond mere performance comparisons and expectations – beyond descriptions of what companies do and what they are supposed to do. Fundamentally, exceptional internal audit reports are clear communications to company leaders, that include descriptions, analyses, and suggestions. Such audits are purpose-driven and purposefully written.
There is a strong tendency among internal auditors to use reports as a vehicle to showcase their intelligence and expertise. This tendency too often leads to complex language that complicates findings and confuses core results. The best auditors understand this tendency and actively avoid it. Instead, they focus on providing information that will be simple and beneficial to companies and their leaders.
Given the complexity of internal audit reports, a common approach is for top leaders to have a designee read reports, highlight the important parts that need to be read by the leadership teams, and then discuss the highlighted portions in audit meetings. This approach illustrates the central problems with the traditional process that make too many reports unreadable in their entirety.
Creating a relationship where company leaders look forward to reading internal audit reports should be the key objective of all internal auditors. With that in mind, the best internal audit reports share the following characteristics:
Clarity
- Write as clearly as possible. Follow this rule of thumb: If the lowest-level managers at the company struggle to understand any aspect of the internal audit report, it is not clear enough.
Conciseness
- Write as concisely and precisely as possible. Avoid long, complex sentences. You are writing a report, not a dissertation. Almost any report can be shortened from its original version. Therefore, make simplifying the report a standard part of the review process before it is submitted.
Focus
- Know your objectives prior to starting the audit. Write the internal audit report based on those objectives. Don’t expand upon the objectives unless absolutely necessary. Add elements only with approval from the appropriate company leaders or in a specific portion focused on suggestions that arise from the audit findings.
Purpose
- Ask the company leadership what they want to learn from the internal audit report. Write the report based strictly on the central purpose(s) of the internal audit.
Selflessness
- Remember: An internal audit report is not about the person who writes it; it is about the people for whom it is written. Remove yourself from the internal audit report. Forget about showcasing your education, your writing skills, your industry expertise, and your ego. Do not write for yourself; write for your intended audience. Communicate to them.
The top priority of any internal audit report should be that it is readable, understandable, and valuable to the company for which it is written – that every word, sentence, paragraph, and section is of some importance – that it is clear and concise – that it is focused and purposeful – that it is written for others and not for the auditor. If an internal audit report is written in this way, it will be invaluable, as will be the partnership of the company that writes it.
Becoming a Better Auditor
We believe that auditors can be strong partners to the organizations they serve. That’s why Fowler & Company has launched the Internal Audit Career Academy, where internal auditors learn the competencies that will allow you to be clear about the direction in which you are going:
- You will receive growth strategies and best practices you didn’t even know existed
- You will be mentored by successful auditors
- You will have the opportunity to model examples that will show you exactly how to do something
- You will learn from other people’s best practices and experiences
- You will work from proven templates and processes
In addition, you will have the opportunity to set goals and gain clarity with other auditors twice a year at a live event filled with meetings and networking opportunities. Learn more.
