logo-newlogo-newlogo-newlogo-new
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books
✕
  • Home
  • Chambers on Internal Audit
  • Uncategorized
  • Five Proven Strategies for More Timely Audit Reports

Five Proven Strategies for More Timely Audit Reports

Setting the Record Straight: The Real Internal Auditors at Olympus Have Not Been Implicated
January 17, 2012
When the Finger Points at Us
March 26, 2012
February 6, 2012

In his iconic book Sawyer’s Internal Auditing: The Practice of Modern Internal Auditing, author Lawrence Sawyer observes that, “Few sources of friction within the auditing department exceed that caused by the process of report writing. The most brilliant of analyses and the most productive of audit findings seem to be forgotten during the trauma of report writing.” I have often thought that truer words have never been written.

As a young internal auditor, I learned early on how time-consuming and frustrating it could be to write an effective audit report. No matter how well I thought I had captured the results of the audit, the audit team leader would inevitably rewrite much of what I had written. To make matters worse, the chief audit executive (CAE) then would rewrite substantial portions yet again. As my career progressed, I later found myself fulfilling the roles of team leader and CAE that I had so vilified earlier in my career as the culprits who rewrote my reports and undermined their timeliness. I must confess that I found myself rewriting reports and perpetuating the age-old tradition of changing “happy to glad.”

The impediments to timeliness of audit reports are not limited to the players in the internal audit function. As most internal auditors have experienced, the release of an initial draft often is only the beginning of the timeliness challenge. The draft report frequently is received with a resounding thud by those whose areas of responsibility were the subject of the audit. Thus begins the negotiation process and give-and-take over the draft report that may add weeks to publishing a final report. The end result is that writing an audit report often can take as long as it did to conduct the actual audit itself.

Over the past decade, I have worked with numerous audit departments that have tackled the audit report timeliness challenge. Many of them have achieved enviable results in reducing the audit report “cycle time.” From my experience, there are at least five strategies that (if deployed effectively) can substantially reduce the amount of time it takes to report audit results:

  • Share internal audit results with client “as you go” — Much of the “push back” from audited activity management in response to draft reports often comes from the “shock effect” of seeing all of the audit results at once. Regular communications with clients during the audit — including sharing draft findings and recommendations in writing — can go a long way toward fostering a positive reaction when the full draft report is presented for comment.
  • Eliminate or reduce levels of review — Multiple levels of review within the internal audit department are often a major contributor to delays in audit reporting. Streamlining the review process and reducing the number of reviewers can be very effective in speeding up the reporting process.
  • Use team writing or report conferencing — Bringing the audit team together with those who will edit or review the draft report for a single editing session can reduce report cycle time dramatically. It affords the audit team and upper levels of supervision the opportunity to discuss the draft report and proposed changes without the endless back-and-forth that often takes place during the editing process. Report conferencing takes team editing one step further, and includes the client or audited activity management.
  • Use automated working papers’ report-writing features — Commercially available audit management systems often include features in which extracts from the electronic working papers are automatically imported into a draft report template. In such cases, the draft audit report virtually writes itself. This can generate major efficiencies in the report-writing process.
  • Streamline the report format — The shorter an audit report is, the less time it typically takes to edit. Internal audit departments that have been successful in reducing report cycle time generally produce lean audit reports that are not only easy to edit, but in turn easy to read. Long and laborious background sections or extensive discussion of audit scope and methodology are the first place to look when streamlining internal audit reports.

There are no quick solutions or easy answers to the age-old challenge of audit report timeliness. However, from my experience, internal audit departments that recognize they have a timeliness challenge and seek to reduce cycle time can make an impact. The strategies outlined above have worked in numerous organizations around the world. I would be interested in hearing from you about any additional strategies for success.

Share

Related posts

January 31, 2023

Recent Advice on Hiring Internal Auditor’s You Can ‘Trust’ Is Misdirected


Read more
January 24, 2023

Do Performance Bonuses Impair Internal Auditors’ Independence and Objectivity?


Read more
January 16, 2023

Are Internal Auditors to Blame When Boards Are in the Dark?


Read more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What’s Trending

01-31-23

Recent Advice on Hiring Internal Auditor’s You Can ‘Trust’ Is Misdirected


01-24-23

Do Performance Bonuses Impair Internal Auditors’ Independence and Objectivity?


01-16-23

Are Internal Auditors to Blame When Boards Are in the Dark?


Read More

Archive

  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009

Contact Us

PO Box 1441
New Smyrna Beach, FL 32170

+1-407-463-9389
rchambers@richardchambers.com

About AuditBeacon.com

AuditBeacon.com is a resource center for internal auditors and risk professionals from around the world. In addition to more than 500 blogs authored by Richard Chambers, the site includes links to news and insights on internal audit and other information that illuminates the value of this important profession. AuditBeacon.com is provided as a service by Richard F. Chambers and Associates, LLC.

Copyright © 2023 Richard F. Chambers & Associates. All Rights Reserved.
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books