Audit Findings - How to Write and Add value.pptx

This presentation would help especially new auditors to write a better findings.

1. Audit Findings How to Add Value? by Ali Talib

2. In the world of Internal audit, crafting of clear and impactful audit findings is critical Let’s Learn & Grow Together

3. HOW CAN WE ACHIEVE THIS? Clarity is key Context matters Get to the root cause Measure the impact Offer practical recommendation Let’s Learn & Grow Together

4. The Art of Audit Findings Delivering Clarity and Value 1. Clarity is Key: Use simple, straightforward language. An effective audit finding is one that everyone can understand, from board members to the employees. 2. Context Matters: Always provide context. Explain why the issue is important and how it ties into broader business objectives or risks. 3. Get to the Root Cause: It’s not enough to point out what’s wrong. Identify the underlying cause to help stakeholders address the real problem, not just the symptoms. 4. Measure the Impact: Quantify the impact where possible. This could be financial, operational, or reputational. It helps prioritize corrective actions. 5. Offer Practical Recommendations: Propose actionable steps that align with organizational goals. Make sure they’re realistic and achievable. Let’s Learn & Grow Together

5. The New Finding Template Let’s Learn & Grow Together Title of Finding (Summary of the issue. Must be clear and concise and not too long) Issues/findings (State the facts and explain how it is important and tied with objective and risk. Use the 5W 2H questions as guidance) Root Cause (State the root cause to help Auditee address the real issue and not just the system. Ask Why? Why? And Why?) Impact (State the impact of the issue to the organization either financial, operational or reputational. It may help to determine the risk rating and priority to correct the issue) Recommendation (Propose a practical, realistic and achievable action plan. It must tie with the root cause and align with the organizational objective.) Nature of the finding (State whether it is a control design deficiency [absence of SOP] or execution deficiency )

6. The New Finding Template Let’s Learn & Grow Together Tips for writing idea/issue: Write about only one thing in one idea/issue. Include only relevant information (remove irrelevant information) Avoid splitting an idea/issue across 2 pages Maintain only maximum 5-7 line per one paragraph. Use visual/chart/table to help reader to easily understand. Use Plain/Simple English . Example Before Press the start button when instructed by the panel operator. Warning: Make sure you stand well clear of the rotor blade. Caution: Do not hold the start button down for more than five seconds. After (using sub-heading) Press the start button when instructed by the panel operator. Warning: Make sure you stand well clear of the rotor blade. Caution : Do not hold the start button down for more than five seconds. Tips for writing idea/issue: Use sub-heading to break-up a larger amount of text and make it easier to find required information and make the idea/issue easier to understand. Example below: Before This program promotes efficient water use in homes throughout the country by offering a simple way to make purchasing decisions that conserve water without sacrificing quality or product performance. After This program helps homeowners buy quality products that use less water but still perform well.