4 elements of audit observation report

Description:

This image presents a slide from a presentation detailing the four key elements of an audit observation report.

1. Condition or Problem:

The first element represents the issue or discrepancy identified during the audit. It emphasizes the importance of clearly stating what was found to be out of order, non-compliant, or problematic.

2. Causes / of Problem:

The text here contains a typographical error ("/" instead of "of") and it refers to the second element, which involves discussing the underlying reasons or factors that led to the identified condition or problem.

3. Consequences of Findings:

This element focuses on the implications or potential impact that the findings could have on the organization, ranging from financial losses to reputational damage.

4. Corrective Actions:

The final element is dedicated to the solutions or steps that should be taken to address the identified issues and prevent their recurrence.

Use Cases:

The slide can be utilized across various industries for internal or external audit reporting. Here are seven industries and specific use cases:

1. Finance:

Use: Reporting internal financial audits

Presenter: Internal Auditor

Audience: Finance Department

2. Healthcare:

Use: Presenting compliance audit findings

Presenter: Compliance Officer

Audience: Hospital Management

3. Manufacturing:

Use: Quality control audit reports

Presenter: Quality Assurance Manager

Audience: Operations Team

4. Information Technology:

Use: IT systems security audit findings

Presenter: IT Audit Specialist

Audience: IT Department

5. Education:

Use: Reporting academic program audits

Presenter: Academic Auditor

Audience: University Administration

6. Retail:

Use: Inventory and process audit presentations

Presenter: Inventory Auditor

Audience: Store Management

7. Government:

Use: Discussing public sector audit results

Presenter: Government Auditor

Audience: Public Administration Officials