What Is an Audit Report?
An audit is the reviewing of documents kept by an organization, company, or government. The audit report is the end product of an audit that may be used by an organization as a tool in financial reports, investments, enforcing accountability, and decision-making. An audit report is crucial to ensuring the results of your audit are presented through a useful and simplified way to the receiver of it. According to questia.com, an effective audit report is engaging, specify and simplify the facts, and create a call to action.
How to Write an Audit Report
Here are five simple guidelines for writing a good and effective audit report:
1. Decide on the Audit Report Style
Ask yourself what is an audit report first before you make that report. There are style guidelines in an audit report that needs to be followed in audit report-making. Research beforehand and understand these guidelines. Make sure to know the elements in an audit report before writing your own audit report. Some of the guidelines in making an audit report are: never use passive words in the report, providing perspective to your reader, and precise sentences. By following the guidelines in writing will help you create an effective audit report.
2. Write the Introduction
Every report should have an introduction but, in the case of the audit report, its introduction should summarize or give an overview of the area that will be audited. The introduction should inform the reader of any background that should be recognized before reading the full report. Your introduction should only be one paragraph. Keep it short and direct to the point since it is a formal report.
3. Have an Auditing Standards Statement
There are auditing standards required in writing an audit report whether it be an internal audit report, monthly report, or business report. Standards will dictate how auditors should structure their practice. This statement is a basic disclaimer that ensures that the audit report was conducted properly. The Auditing Standards Statement should affirm that the report was performed in accordance with government standards. Research about these Auditing Standards to learn more and create a credible status for you as an auditor.
4. Compose Executive Summary
After conducting your audit, compose an executive summary for the financial audit or tax audit you made. The executive summary should give an overview of the audit results. In this section, it should state the brief description of what was audited, the objectives of the audit, its scopes, and the time period; the significant action plan; and the overall audit report rating.
5. Findings and Recommendations
An audit report usually ends with the results of the audits which would then lead to the results and recommendations for what was audited. Provide a brief opening statement that describes the information you will provide. In providing the results of what you have audited, understand and address your findings through the terms: condition, criteria, cause, and effect. Your findings should be reliant on these terms to create an effective business audit report. And lastly, write recommendations for the improvement of what was audited. Have the recommendation statement positive, specific, and specific.