Internal audit and review reports
|by Katharine Bagshaw | | |29 Jan 2003 | | |Internal auditors, external auditors, and consultants who perform internal audit and review engagements provide reports to management | |(internal audit reports). These reports are important because they provide documentary evidence of the work performed, the conclusions reached| |and the recommendations made. The quality and presentation of such reports makes a substantial difference to the value added by internal audit| |and those performing similar functions. | |Internal audit reports are different to statutory auditors’ reports produced by external auditors because statutory reports are governed by | |legislation and either national auditing standards, or International Standards on Auditing. Statutory auditors’ reports are highly codified, | |and usually fairly brief by comparison with internal audit reports, and they are often available for public inspection. Statutory auditors’ | |reports are produced for the benefit of shareholders and other stakeholders whereas internal audit reports are produced for the benefit of | |management; they are generally private documents and are not normally available for public inspection. | |On the other hand, internal audit reports are similar, in some respects, to reports to management on the design and implementation of controls| |provided by external auditors to management during the course of, and at the end of, statutory audits. The method of production of such | |reports is similar, for example. Both internal and external auditors draft...
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