Private companies are those that are owned by non-government organizations or by a relatively small number of shareholders. This means that they’re not subjected to the annual external audited that’s usually mandated by the government to be done to public companies. You can also see report templates
Since these private companies don’t have to go through the government mandated audits, they instead must do an internal audit that focuses more on risk management. This is to ensure that the private company can operate without having to worry about breaking the laws and so to help see if there are any violations that need to be fixed as soon as possible. Which is why this article is going to teach you how to create a private company audit report.
Private Company Audit Report Sample Template
Sample Private Company Audit Report
Private Limited Company Audit Report
How to Conduct an Audit Report for Your Private Company
Remember that this is the type of report that you do to help you see whether your private business’s risk management sample is being properly handled. Take note that this is very important due to the simple fact that one small mishap could lead to the business being shut down.
So with that in mind, here are the steps that will allow you to do conduct a proper private company audit report:
1. Know the Style of Audit Report Before You Begin Writing
Here are certain style guidelines you need to follow for any audit report. So you have to make sure that you know what they before you begin making yours. So here are the things that you’re going to have to follow:
1. Provide perspective for the reader – You have to make sure that you’re able to give the reader a fair balance between the positives and negative regarding the audit that has been conducted. This is very important as the main purpose of the audit is to help businesses improve and not find ways to shut them down. So take a look at all of the positives of private company in regards to their risk management example. Once you’ve managed to point those out, then you may proceed to point out the negatives. You must then provide the means in which they are able to overcome these negatives so that they can ensure their private company is safe from all types of risks.
2. Be precise – You have to be very clear on what it is that you’re trying to point out to the reader. It’s very important that you manage to avoid redundant phrasing and inexact terminology. If you want to make your report clear, then one of the best things that you can do is to opt for shorter sentences rather than longer ones. A limit of 15 to 18 words is recommended in business writing. As you’re making the sample report, you should also avoid the use of intensifiers such as the words “clearly”, “special”, and “key”. Those intensifiers lack precision and you’re trying to be as accurate as possible when providing your report.
3. Don’t use a passive voice – Using a passive voice can make it difficult for the reader to go through your report. For example, you’ve written “No evidence was found the audit team”. You want to change that into an active voice by saying “The audit team found no evidence of irregularity”. Having an active voice also makes the flow of the report feel much smoother, making it even easier for the reader as he or she goes through the report. You can also read data audit reports.
4. Make good use of bullet points – If you want to make your report look professional and organized, then you should definitely make use of bullet points. You’ll be tackling a lot of information and you’ll most likely be categorizing them. The bullet points will help your report look clean as you segment certain pieces of information. Not only that, but readers will have an easier time looking at a report that doesn’t feel like it’s just text being jumbled up together in paragraphs. You may also check internal audit reports.
5. Use gender neutral terms – This is something that you want to do as you don’t want anything to sound biased towards a particular sex or social gender. You want to avoid any unnecessary conflicts as much as possible an going the gender neutral route is the best way to do that. You may also see sample internal audit reports.
6. Do not make use of buzzwords – These are basically ambiguous, overused phrases like “generally improved,” “significant risk,” and “tighten controls.” Best that you come up with more meaningful phrases that’s able to properly describe a particular area of the private company that you have just assesed. You may also see safety audit report templates.
2. Write Your Introduction
From the very moment that you begin writing, you have to make sure that you’re able to include an introduction in your report. The point of doing so is to ensure that you’re able to outline the purpose of the document, as well as provide disclaimers that the readers will want to learn before they go through the report. Remember that you should never forget to include the disclaimer as it will let the readers know what they should expect once they start going through the report. You may also see environmental audit reports.
3. Follow Things Up With the Purpose and Scope Methodology
This is the section of the report where you will need to answer the following questions regarding the audit:
1. For what reason was the audit conducted? – When coming up with a report, it’s important that you point out why the audit was done. The reason for this is because it will tell readers what they should expect as they go through the report. Since we’re talking about a private company audit report, the main reason would usually be to see how risk management is being handled. If there are any other particular reasons for the audit being done, then write it down in the report. But just remember that no matter what kind of reason there is for the audit being conducted, just make sure that you present it as clearly as possible. You may also see stock audit reports.
2. What information was and was not included during the audit? – By this point, you need to be able to provide a list of all the pieces of information that you used to conduct the audit, as well as what you didn’t use. The reason for doing so is to show the reader that you were able to do the audit competently. Make sure that you write down all the information that you’ve managed to gather to show how effectively you’ve managed to handle the audit. As for the reason of providing what you excluded, it’s to tell the reader that certain items were unnecessary in conducting the audit. One good example would be financial statements as you won’t really need it to conduct risk management for a private company.
3. What was the time period of the audit? – You have to point this out so that the reader can see when the time period in which the audit was done. It’ll let them know when certain problems may have started as well as telling them when they have to fix these problems. You may also like forensic audit reports.
4. What are the objectives of the audit? – So what is it that the audit is trying to accomplish? No matter what kind of audit you decide to do, you’ll want to point out its main objectives. Since we’re talking about an audit report for a private company, the reason would most likely be to ensure that its risk management is further improved to ensure that it complies with the rules, policies, and most important, the law. Just remember to point this out clearly so that the reader will know what the audit is aiming to achieve. You may also see clinical audit reports.
4. Continue to the Statement Regarding Audit Standards
This audit is a basic disclaimer people will look for to make sure that the audit was done properly and accurately. The Statement on Auditing Standards should say the report was done according to the standards of the government. This will make it clear to the readers that the report was done in the most efficient and accurate manner possible. You may also learn more about how to create an effective action plan.
5. Come Up With the Executive Summary
This is an overview of the audit results. It should present overall conclusions and recommendations related that’s related to the Purpose and Scope Methodology. It’s important that you include the following in this section:
1. Descriptions on the different things that were audited – This is where you make brief statements regarding the things you’ve audited like objectives, scopes, and the time period that you based the audit on. You may also see laboratory audit reports.
2. Statement of significant action plans – This is basically where you provide the information regarding what it is that the business has to do in order to comply with the law, policies, and procedures.
3. Overall statements of concerns and conclusions – By this point, you talk about the concerning matters regarding the private company’s risk management, as well as what they have to do in order to fix any problems. You may also see brand audit reports.
4. Overall audit report rating – This shows whether a business should improve further, under clear violation, or if its meeting with all of the rules and regulations. You may also see management audit report templates.
If you want to learn about the other types of audit report that you can possibly make, then all you have to do is go through our site. It has many different articles that should be able to provide you with the help that you need. Just make sure that you’re able to read them thoroughly so that you can make effective use out of whatever information they contain. You may also see engineering audit reports.