Company, Inc.
XYZ Audit Report
Date: January X, 201X
To: Name or Audit Committee
From: Audit Director or Executive
Subject: Description of Audit
Executive Summary
(Target content in this section to C-suite executives and audit committee.)
Overview
Description of audit objective and brief background information on business
or operation.
Audit Scope (List of items covered and not covered during audit)
Areas audited:
 Item 1
 Item 2
 Item 3
Areas not audited:
 Item 1
 Item 2
 Item 3
Rating
Unsatisfactory
Needs
Improvement
Good
Excellent
X
Description of rating
Summary
of Results
One- to two-paragraph summary of rating, main points, and key
recommendations from audit
Key Issues
List of three most important issues (summarize this information based on
detailed audit findings)
 Key Issue #1 - Begin with specific condition statement in bold.
Remaining description includes overview of evidence, effect of
condition on the business or operation, and description of severity of
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the problem.
 Key Issue #2 - Begin with specific condition statement in bold.
Remaining description includes overview of evidence, effect of
condition on the business or operation, and description of severity of
the problem.
 Key Issue #3 - Begin with specific condition statement in bold.
Remaining description includes overview of evidence, effect of
condition on the business or operation, and description of severity of
the problem.
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Audit Findings and Recommendations
(Target content in this section to management.)
Overview of Findings (This section provides Table of Contents and overview
of audit findings. Use exact statement of condition from detailed findings.
Designate a system for labeling conditions on priority or impact.)
#
Condition
Priority/
Impact
Audit sub-category #1
1
Specific statement of condition
$$$$
Specific statement of condition
$$$
Audit sub-category #2
Specific statement of condition
3
!!!!
Specific statement of condition
!!!
Audit sub-category #3
Specific statement of condition
5
!!!
Audit sub-category #4
Specific statement of condition
6
!!
Audit sub-category #5
Specific statement of condition
8
!
2
4
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Detailed Findings
1
Specific statement of condition (Answer the question: What’s wrong?)
$$$$
In this section, include the following:




Evidence for statement of condition
Criteria for what should be happening
Risk or effect of the condition
Cause of the condition
(For easy scanning of information, use short sentences, short paragraphs, sub-headings,
lists, tables and charts, and plenty of white space.)
Table example:
Test Item
Result
1
$xxx
2
$xxx
3
$xxx
4
$xxx
5
$xxx
Total
Recommendation
(Seek to solve the cause, not the symptom.
Use a list format. Make recommendations
specific, measurable, achievable, relevant,
and time-bound.)
$XXXXX
Management Response
(Include management comments on
condition, background, and plan based on
recommendations.)
1. Management should…
2. Controls should…
3. Review processes should…
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2
Specific statement of condition (Answer the question: What’s wrong?)
$$$
In this section, include the following:




Evidence for statement of condition
Criteria for what should be happening
Risk or effect of the condition
Cause of the condition
(For easy scanning of information, use short sentences, short paragraphs, sub-headings,
lists, tables and charts, and plenty of white space.)
Recommendation
Management Response
(Seek to solve the cause, not the symptom.
Use a list format. Make recommendations
specific, measurable, achievable, relevant,
and time-bound.)
(Include management comments on
condition, background, and plan based on
recommendations.)
1. Management should…
2. Controls should…
3. Review processes should…
Repeat format for all issues.
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