Module 10: Reporting and Communication Techniques Flashcards
What are the skills needed for communicating audit results?
- Communication Skills
- Facilitation
- Negotiation
- Conflict Resolution
usually conducted at the end of the audit
Exit Interview
Exit Interview: What is the primary purpose of Exit Interviews?
Discuss findings and recommendations with auditee management
Exit Interview: expectations during the exit interview?
- ensure facts are CORRECT and MATERIAL
- ensure recommendations are REALISTIC and COST EFFECTVE
- recommend implementation dates for agreed on recommendations
Exit Interview: If there are no realistic and cost effective recommendations what should the auditor do?
seek alternatives through negotiations
Exit Interview: Can denial of access by levels lower than senior management be allowed?
No. as it would limit the independence of the audit function.
What are the 6 audit report objectives?
- Formally present the audit results to the auditee
- Serve as formal closure of the audit engagement.
- Provide statements of assurance and, if needed, identification of areas requiring corrective action
and related recommendations. - Serve as a valued reference for any party researching the auditee or audit topic.
- Serve as the basis for a follow-up audit if audit findings were presented.
- Promote audit credibility.
ITAF: 1401.2
ensure the findings are supported by sufficient and appropriate evidence
ITAF: What does the ITAF 1401.1 say
provide a report and communicate the results of each engagement
ITAF: 1402.1
monitor and periodically report to those charged with governance and oversight, ensuring that they have taken appropriate action to address recommendation
ITAF: 1402.2
Progress of the implementation status of audit findings should be regularly reported to the audit committee
ITAF: 1402.3
- if acceptance of risk happens and it is greater than the risk appetite, it should be discussed with senior management.
- alert the audit committee and/or BoD
Structure and Contents of Audit Reports: a statement of audit objectives, limitations to the audit and
scope, the period of audit coverage, and a general statement on
the nature and extent of audit procedures conducted and
processes examined during the audit, followed by a statement on
the IS audit methodology and guidelines
introduction
Structure and Contents of Audit Reports: what are the contents
Introduction
Audit Findings
IS Auditor’s Overall Conclusion
IS Auditor’s Reservations or Qualifications
Elements of a Deficiency Audit Finding: standards used to determine whether an operation, function, or program meets or exceeds expectations
Criteria
Elements of a Deficiency Audit Finding: situation that exists. It has been observed and documented during the audit. It represents “what is” at the time of the audit
Condition
Elements of a Deficiency Audit Finding: explains why the poor (or good) performance observed in the audit happened
Cause
Elements of a Deficiency Audit Finding: actual or potential consequences of a condition that varies (either positively
or negatively) from the criteria identified in the audit
Effect
Elements of a Deficiency Audit Finding: state what an audit organization believes should be done to accomplish
beneficial results. They do not direct what must be done but seek to
convince others (e.g., the auditee) of what needs to be done
Recommendation
Structure and Contents of Audit Reports: Opinion on the adequacy of controls and procedures examined during
the audit, and the actual potential risk identified as a consequence of
detected deficiencies
IS Auditor’s Overall Conclusion
Structure and Contents of Audit Reports: his may state that the controls or procedures examined were found to
be adequate or inadequate. The balance of the audit report should
support that conclusion, and the overall evidence gathered during the
audit should provide an even greater level of support for the audit
conclusions.
IS Auditor’s Reservations or Qualifications
Characteristics of Report Presentation: he report contain all
information needed to
satisfy the audit
objectives, promote
an adequate and
correct understanding
of the matters
reported, and meet
the applicable report
content requirements
complete
Characteristics of Report Presentation: he evidence
presented be true and
that findings be
correctly portrayed
accurate
Characteristics of Report Presentation: he presentation of the
entire report be
balanced in content
and tone
objective
