Writing of Management Audit Report
Report Writing
Dinesh Pant
Process of Management Auditing
Step I:
Preparing audit plan – getting approval / informing the
organization to be audited in advance
Step II: Conducting field studies (auditing at workplace level),
involving various methods of data collection /auditing
Step III: Analysing / verifying data
Step IV: Writing audit report (with required discussion before itys
finalization)
Report Writing: What is it is actually?
A report is a written statement or document prepared after a detail
investigation / study / review /observation of a situation – its state,
causes, effect and solutions
It is simply a narration of “what happened” to all concerned: A kind of
story telling with coverage of:
• What was done
• How it was done
• What was found
• What was conclusions
• What was recommended / instructed (in case of auditing)
• What has been supporting evidence / references
Types of Report
Based on Types
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Based Preparation Stage
Preliminary draft report
Investigative / research report
Baseline survey report
Feasibility study report
Evaluation report
Implementation progress report
Audit report
Any activity completion report
Based on Presentation
General Descriptive Technical
Report
Prescriptive report
Final report
Areas of Management Auditing (MA Directives 2067)
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Organization policy and behaviours
Organization structure
Work process and layout
Personnel management and records
Financial management and goods management
Service delivery and transparency
Use of information technology
Management of employee grievance
Miscellaneous
Methodology of Auditing (MA Directives 2067)
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Observation
Discussion
Interview
Questionnaire
Document / evidence studies
Study and review of past reports
Other methods as deemed appropriate by audit team
Report Format (Prescribed by MA Directives 2067)
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Management Audit Team
Introduction to the organization audited
Duration of auditing
Situations observed through management auditing, e.g.,
organization structure, work processes, etc
5) Completion/ Execution state of instructions / recommendations
made in earlier report
6) Overall observation and opinions of audit team
7) Recommendations of audit team
Annexes
Contd…Prescribed Format for Management Auditing - Annexes
Annex 4: Statement of approved and vacant positions of the
organization
Annex 5: Statement of transfer and placement of staff
Annex 6: Staff sent for training during report period
Annex 7: Statement of placement / transfer on “Acting basis’
Annex 8: Statement of staff equivalent to those on “Acting” basis
Annex 9: Staff not having placement
Annex 10: Statement of “Fazil” staff
Annex 11: Statement of staff on deputation
Annex 12: Statement of advances and irregularities
Previous Mgmt Audit Report Formats
Report on Upper Tamakoshi Hydro Project
Report on Department of Customs
Chapter I
 Background
 Auditing Objectives
 Audit Methodology
 Audit scope
 Limitation of auditing
 Report Structure
 Upper Tamakoshi Hydro Project
Chapter I
 Background
 Objectives of management auditing
 Scope of auditing (as specified in Directives)
 Limitation of management auditing
 Methodology
 Report structure (chapter plan)
Chapter II:
 Positive aspects:
 Reform aspects
 Suggestions
(Coverage: Org policy and behaviours, org structure,
work procedures and physical lay out, service delivery
and transparency, personnel mgmt and records,
financial and goods mgmt, etc. – as stated in Directives)
Chapter III
Conclusions and recommendations
ChpaterII: Observed subjects from during auditing
 Introduction to Custom Dept (history, objectives
functions, legal provisions, etc.)
Chapter 3: Observed Situation during auditing
 Positive aspects
 Remarks
 Suggestions
Chaper IV:
 Conclusions, with acknowledgement
Others reports (e.g., Auditor General’s Performance Audit Report 2071)
Coverage
• Situation of objective fulfilment
• Comparative review of targets and
accomplishments
• Compliance to law, procedures and
directives
• Physical infrastructure and utilization
• Information system and record mgmt.
• Manpower management
• Utilization of existing capacity
• Monitoring and evaluation system
• Situation of program execution
• Transparency and accountability
• Program execution
• Mobilization of financial resources
• Coordination situation
• Economy and timeliness in procurement
Report format (Youth Self Employment Fund)
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Background of organization (Fund)
Rationales for choosing the organization for perf. audit
Policy provisions related to the Fund
Objectives and targets
Financial provisions
Objectives of auditing
Scope of auditing
Auditing methodology
Limitations of auditing
Observed situation (Positive, Problems / challenges, areas of
reform)
Financial resource mobilization, budget, Grants, bank loan,
investment, etc, with replies of organization)
Manpower management (insurance, training, etc)
Internal auditing
Monitoring and evaluation
Conclusion
Behavioral guidelines for writing a report
Basic Rules: Concise, simplicity, clarity and describing
• Be clear why report is being prepared
• Be clear whom report is being written for
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How much time is available for writing
What resource is needed for report writing
Make the report precise and specific
Make sentences short, avoiding complex sentences
Present facts / findings with logical interpretation
Make it reader-centred
Giving visual impressions – with attractive cover, page lay-out, pictures, diagram,
binding
Other guidelines for style of report writing
Other Procedural Rules
• Avoid slang / jargons
• Use minimum quantitative terms / follow general rules when quantitative terms
needed
• Try to explain / describe rather than giving opinion
• Avoid calculation / formula in the main text
• Use proper tense of expression
• Use abbreviations only after giving their full forms
• Select proper pronouns Third person preferable on many occasions  Passive
sentence preferable
• Use proper form of reference / follow rules of quoting, e.g., Ibid, op.cit, et.al.
• Avoid common grammatical mistakes / errors
• Proof reading / corrections (lastly)
• Take care of size / type of fonts for texts, captions / sub-captions – Margins
Report writing is a skill; it is creative activity – like weaving a carpet!
Indicators of good report writing
• Good start
• Adequate coverage – with focus
• Rich content
• Relevancy of content
• Factual
• Logical sequence / flow
• Language
• Organization of report
Suggested Tentative Format for Field Studies on Mgmt Auditing
Executive Summary
Table of Content
Abbreviations
Chapter I: Introduction
• Background (Rationales for choosing organization for auditing)
• Objectives of auditing
• Scope of auditing
• Methodology of auditing
• Composition of auditing team
Chapter II: Profiles of Organization Selected
• History, Objectives
• Functions
• Policy and legal provisions related to organization
• Targets and accomplishment
• Execution of previous directives, recommendations, investigation report, if any)
Chapter III: Overall Observation of Situation (with coverage of but not limiting to 9-point scope stated in Directives)
• Positive Aspects
• Problems / challenges
• Areas of Reforms (Directives)
Chapter IV: Conclusions and Major Recommendations
Annexes
References
Verbal Report Presentation (Two phases)
• Presentation planning
• Presentation execution:
Presentation: Preparation Phase (Planning):
 Identify / consider the subject to be presented (what?)
 Set objective of the presentation (why?)
 Identify the audience characteristics (whom?)
 Find out the venue (where?)
 Formulate the content (listing the main points) and methods of presentation (how?)
 Collect relevant data / information to support your subject or points
 Prepare a reference note (a full text, if necessary) to be consulted / distributed
 Choose / prepare presentation materials
 Consider physical appearance (dress /hair, etc.)
 Cross-check the preparation
 Rehearse the presentation
Presentation: Implementation Phase (Actually Presenting)
 Reach the venue before time and make sure that everything is in place
and fulfill all formalities (e.g., greeting)
 Highlight the main objectives and outline of your presentation
 Make presentation on a point-wise basis, elaborating each point (with
a bang!)
 Keep observing feelings (verbal / non-verbal) of the audience
 Test understanding of the audience
 Manage your feelings (expressing / suppressing emotions – anger,
nervousness)
 Show respect to audience (building, supporting, avoiding
disagreement, etc.)
 Summarize the main points and conclude the subject for meeting the
objective