Republic of the Philippines

Provincial Government of Batangas

OFFICE OF THE PROVINCIAL GOVERNOR
INTERNAL AUDIT SERVICE
Laurel Park, Capitol Site, Batangas City
Tel. Nos.: (043) 783-0993

POST TRAINING/WORKSHOP REPORT

I. Title of Training : Effective Audit Report Writing

II. Date : May 17 -20, 2022

III. Venue : IASO office via Zoom

IV. Organization Body/Agency : Association of Government Internal Auditors, Inc (AGIA)

V. Participants/Office : 1. Rosalie C. De Castro – Internal Auditor III

2. Rei Robin Roland A. Tumambing – Internal Auditor II
3. Angelica M. Verano – Internal Auditor I
4. Eleonor Z. De Guzman – Internal Auditor I

Speaker : Mr. Junn E. Nicanor

Head / VP for Internal Audit
Aboitiz Power Corporation

VI. Objective

This course focuses on understanding and applying rules and techniques, as well as using
examples to select the proper material, organization, tone, and reporting style in audit report
writing. It will also go through the fundamentals of communicating audit findings and teach how
to write effective audit reports.

VII. Subject Matter/Topic Discussed

Day 1
A. Parallelisms and Peculiarities in Public and Private Internal Audit Practice
Public Private
1. Internal Auditing The evaluation of An independent objective
Defined management controls and assurance and consulting
operations performance, and activity designed to add
the determination of the value and improve an
degree of compliance with organization’s operations.
laws, regulations,
managerial policies, Helps an organization
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 accountability measures, accomplish its objectives by
ethical standards and bringing a systematic,
contractual obligations. disciplined approach to
evaluate and improve the
Involves the appraisal of the effectiveness of risk
plan of organization and all management, control and
the coordinated methods governance processes.
and measures, in order to
recommend courses of
action on matters relating to
operations and management
control.
2. IA Scope of Work Operation and Management Risk Management Process
of Work
Control Process
Control Design and
Implementation Governance Process
3. Bsis of IA Standard Philippine Government International Professional
Internal Audit Manual Practices Framework (IPPF)
(PGIAM) with 4 mandated
components:
- IA Definition
- Scope of Work - Core principles
- Types of Audit - IA Definition
- Principles and - Code of Ethics
Standards with - International
Hierarchy of Standards for the
Applicability Professional Practice
of Internal Auditing
(ISPPIA)
4. License to Operate Legal Basis Internal Audit Charter
- PD 1445 (Government - Approved by the
Auditing Code of the AuditCom
Philippines) dated 11 - Ratified by Board Of
June 1978 Directors
- EO 292 - Specifies the Purpose,
(Administrative Code Authority,
of 1987) dated 25 July Responsibility, Scope,
1987 Declaration of
- AO 119 dated 29 Independence, Full
March 1989 Access to Company
- MO 277 dated 17 Records among
January 1990 others.
- AO 278 dated 28
April 1992
- AO 70 dated 14 April
2003
5. IA Code of Conduct and Code of Conduct and Ethical Code of Ethics for Internal
Ethics Standards for Public Auditors as mandated by
Officials and Employees IIA

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6. Internal Control Frame
work

7. Internal Audit Process  Planning  Planning

 Execution  Fieldwork
 Reporting  Reporting
 Follow-up  Monitoring Progress
8. Types of Audit  Compliance Audits  Compliance Audits
 Management Audits  Integrated Management
 Operations Audits System Audits
(QESHMS)
 Operations Audits
 Financial Audits
 IT/Information Systems
Audits
 Governance Audits
 Asset Management
System Audit
 Information Security
Management System
Audit

(Fixed per PGIAM) (RISK BASED)

9. Reporting Lines  Department Secretary Publicly-Listed:
(DS) / Head of Agency  Board Audit Committee
(HoA) with 2-3 Independent
 Governing Body (GB)/ Directors and to be
AuditCOm of chaired by an
- Government Owned and Independent Director
Control Corporations (Functionally)
(GOCC)  President / CEO or COO
- Government Financial (Administrative)
Institutions (GFI’s)
- Local Government Units Private Corporations:
(LGU;s)  Audit Committee
(Mature/ Big companies)
 Senior Management
(Small companies)
10. Independence  Not part of the process  Not part of the process
being reviewed being reviewed

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  Rigid Independence  Independent business
partner
11. Basis of Audit 4 C’s: 4 Attributes:
Observation and  Criteria  Criteria
Recommendations  Condition  Condition
 Conclusion  Cause
 Cause  Effect

B. Overview of Internal Auditing

1. The Internal Audit is anchored in:
a. IA Practice Framework
b. From the previous International Professional Practices Framework (IPPF) to the new
IPPF
 Launched July 2015
 Introduced mission
 Introduced 10 Core Principles
 Implementation Guides
2. Mission of Internal Audit
To enhance and protect organizational value by providing risk-based and objective
assurance advise, advice and insight.
3. The 10 Core Principles
a. Input
 Demonstrates integrity
 Demonstrates competence and due professional care
 Is objective and free from undue influence (independent)
b. Process
 Aligns with the strategies, objectives, and risks of the organization
 Is appropriately positioned and adequately resourced
 Demonstrates quality and continuous improvement
 Communicates effectively
c. Output
 Provides risk-based assurance
 Is insightful, proactive and future-focused
 Promotes organizational improvement
4. Three (3) Lines of Defense in an Organization and position of Internal Audit
5. Internal Auditing
An independent objective assurance and consulting activity designed to add value
and improve an organization’s operations.
Helps an organization accomplish its objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of risk management, control and
governance processes.
6. General Types of Audit services
a. Assurance Services
An objective examination of evidence for the purpose of providing an
independent assessment on governance, risk management, and control processes for
the organization. Examples may include financial, performance, compliance, system
security, and due diligence engagements.

b. Consulting Services

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 Advisory and related client service activities, the nature and scope of which are
agreed with the client, are intended to add value and improve an organization’s
governance, risk management, and control processes without the internal auditor
assuming management responsibility. Examples include counsel, advice, facilitation,
and training.
7. Internal Audit Scope
a. Risk Management Process
b. Control Process
c. Governance Process
8. Code of Ethics for Internal Auditors
a. Principle b. Rules of Conduct
 Integrity
 Objectivity
 Confidentiality
 Competency
9. Global Standard of Internal Audit Practice
a. International Standard for the Professional Practice of Internal Auditing
 Attribute Standards
 Performance Standards
10. Evolution of IA Function
Traditional Auditor Modern Auditor
 Police  Consultant
 Fault finder  Business partner
 Feared upon  Friend
 Necessary evil  Valued resources
 One who blames/ pins down  Help for improvement
 Always right/ authoritative image  Solicits auditee’s inputs
 Reactive  Proactive
 Rigid Independence  Independent business partner
 Assign duties and supervises staff  Empowered / accountable
 Detail oriented  Risk – takers
 Process improvement – a by –  Targets process improvements
product
 Policy-driven internal control  Self-assessment & continuous
improvement programs

C. Applicable Standards on Communicating Results

1. The IAA Standards for Communicating Results
a. Standard 2400 – Communicating results
Internal auditors must communicate the results of engagements
b. Standard 2410 – Criteria for communicating
 Communications must include engagement’s objectives, scope and results.
 Final communication of engagement results must include applicable
conclusions, as well as applicable recommendations and/ or action plans.
Where appropriate, the internal auditors’ opinion should be provided. An
opinion must take into account the expectation of senior management, the
board, and other stakeholders and must be supported by sufficient, reliable,
relevant and useful information.

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  Internal auditors are encouraged to acknowledge satisfactory performance in
engagement communications.
 When releasing engagement results to parties outside the organization, the
communication must include limitations on distribution and use of the results.
 Communication in progress and results of consulting engagements will vary in
form and content depending upon the nature of the engagement and needs of
the client.

c. Standard 2420 – Quality of communications

 Accurate – free from errors and distortions and faithful to underlying facts.
 Objective – fair, impartial, and unbiased and are the result of a fair-minded and
balanced assessment of all relevant facts and circumstances.
 Clear – easily understood and logical, avoiding unnecessary technical language
and providing all significant and relevant information.
 Concise – to the point and avoid unnecessary elaboration, superfluous detail,
redundancy and wordiness.
 Constructive – helpful to the engagement client and the organization, and lead
to improvements where needed.
 Complete – lacking nothing that is essential to the target audience and include
all significant and relevant information and observations to support
recommendations and conclusions.
 Timely – opportune and expedient, depending on the significance of the issue,
allowing management to take appropriate corrective action.
d. Standard 2421 – Errors and omissions
If a final communication contains a significant error or omission, the chief audit
executive must communicate corrected information to all individuals who received
the original communication.
e. Standard 2430 – Use of “Conducted in Conformance with the International Standards
for the Professional Practice of Internal Auditing”
Indicating that engagements are “conducted in conformance with the
International Standards for the Professional Practice of Internal Auditing” is
appropriate only if supported by the results of the quality assurance and
improvement program.
f. Standard 2431 – Engagement disclosure of nonconformance
When nonconformance with the Code of Ethics or the Standards impacts a
specific engagement, communication of the results must disclose the:
 Principle(s) or rule(s) of conduct of the Code of Ethics or Standard(s) with
which full conformance was not achieved;
 Reason(s) for nonconformance; and
 Impact of nonconformance on the engagement and the communicated
engagement results.
g. Standard 2440 – Disseminating results
 The chief audit executive must communicate the results to the appropriate
parties.
 The chief executive is responsible for communicating the final results to parties
who can ensure that the results are given due to consideration.
 If not otherwise mandated by legal, statutory, or regulatory requirements, prior
to releasing results to parties outside the organization the chief audit executive
must
 Assess the potential risk to the organization;

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  Consult with senior management and/or legal counsel as appropriate;
 Control dissemination by restricting the use of the results.
 The chief executive is responsible for communicating the final results of
consulting engagements to clients.
 During consulting engagements, governance, risk management, and control
issues maybe identified. Whenever these issues are significant to the
organization, they must be communicated to senior management and the
board.
h. Standard 2450 – Overall Opinions
When an overall opinion is issued, it must take into account the strategies,
objectives, and risks of the organizations; and the expectations of senior management,
the board, and other stakeholders. The overall opinion must be supported by
sufficient, reliable, relevant, and useful information.
i. Standard 2500 – Monitoring progress
The CAE must establish and maintain a system to monitor the disposition of
results communicated to management.
 The CAE must establish a follow-up process to monitor and ensure that
management actions have been effectively implemented or that senior
management has accepted the risk of not taking action.
 The internal audit activity must monitor the disposition of results of consulting
engagements to the extent agreed upon with the client.
j. Standard 2600 – Communicating the Acceptance of Risks
When CAE concludes that management has accepted a level of risk that is
unacceptable to the organization, the CAE must discuss the matter with the senior
management. If the CAE determines that the matter has not been resolved, the CAE
must communicate the matter to the board.
Day 2
A. In Focus: The Internal Audit Report and the Report Writing Process
1. The Internal Audit Report
a. Most powerful tool
b. Plays a unique and influential role
c. Regularly submitted to senior management, board of directors, and the audit
committee
d. Includes change initiatives, attention to high-risks areas, evaluation/ assessment
results of the quality of systems and procedures
e. The main product assurance providers produce
2. Report Writing
a. A problem
 Honestly misguided
 Ideas thought is not clear enough
 Trying to impress others
 Trying to conceal a weak material
b. An Opportunity
 The ability to write will spell the difference in performance
 Assurance reports play a unique and influential role in an organization:
 Include recommendations for changes in procedures and standards
 Calls attention to high-risk areas
 Reports evaluation of the quality of systems and procedures
 Based on assurance reports, management decides on directions, strategies and
priorities.
c. A process
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  Both mental and physical process
 Starts at the beginning of the engagement and ends with the submission of the
final assurance report.
 Writing the report should be done throughout the assurance process.
3. Purpose of an Assurance Report
a. Inform
b. Persuade
c. Get Results
4. To whom are Assurance Reports Important
a. To the Assurance providers themselves
 Summarize the purpose, scope and results of assurance work
 Stimulate action to strengthen controls
 Facilitate teaching and training of assurance staff
 Facilitate performance evaluation
 Facilitate follow-up
b. To the operating management
 Stimulate action toward necessary improvements by serving as a plan of
action.
 Means of gaining support for issues that require attention of higher
management.
 Serve as windows into operations for busy operating managers.
c. To the top management
 Provide details about operations and controls not contained in the reports.
 Provide objective information on audit activities, permitting management to
judge if the more important or higher risk affairs are being audited.
 Provide information that may not reach top management.
 Promote disciplined operations
d. To the organization’s outside or external auditors
 Important source of information
 Help them evaluate the extent to which internal assurance work can be
relied on for segments of their examination
 Can alert them to special problems and help them avoid duplication of
work.
e. Government regulators or courts
 Help provide assurance to regulatory agencies regarding practices of interest to
them
5. Quality Criteria of Internal Audit Reports
a. Accurate
 Free from errors and distortions
 Faithful to underlying facts
b. Objective
 Fair, impartial and unbiased
 The result of a fair-minded and balanced assessment of all relevant facts and
circumstances
c. Clear
 Easily understood
 Logical, avoiding unnecessary technical language
 Providing all significant and relevant information
d. Concise
 Direct to the point
 Avoid unnecessary elaboration, superfluous detail, redundancy and wordiness
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  Brief statement capsulizing key ideas
 Limited detail
 Summaries of supporting data
e. Constructive
 Helpful to the engagement client and the organization
 Lead to improvements where needed
 Focuses on causes of problems
 Balance of positive and negative, and
 Credit for management or audit customer’s action
f. Complete
 Lacking nothing that is essential to the target audience
 Include all significant and relevant information and observations to support
recommendations and conclusions
g. Timely
 Well-timed, opportune, and expedient depending on the significance of the
issue, allowing management’s corrective action.
 Immediate presentation to line management
 Interim reports for serious issues
 Strict enforcement of standard of timeliness
6. Cost Component of Internal Audit Reports
a. Analytical Costs
 Time required to complete the audit, including planning, fieldwork, and
development/ presentation of conclusions.
b. Administrative Costs
 Time required to issue report, including development of reporting standards,
definition of formats and the training / instruction provided to staff; complete
production, including composing the report, management review and editin,
typing, proofreading, and copying.
c. Agreement Costs
 Time to present the report, agree on conclusions and follow-up any unresolved
items after the report is issued.
7. Basic Equation of Value
a. Value = QUALITY – COST
(where Quality exceeds Costs)
 Goal is to keep quality rating high. Control costs, especially administrative
costs.
b. COSTS Components
 Analytical:
 Planning
 Fieldwork
 Administrative:
 Composing / Encoding
 Reviewing / Editing
 Printing / Proofreading
 Agreement:
 Presentation / Exit Conference
 Solutions / Audit Customer’s Feedback and Commitment
 Follow-up / Updates
c. QUALITY Components
 Accuracy
 Objectivity
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  Clarity
 Conciseness
 Constructive
 Completeness
 Timeliness
8. Causes of Writer’s Block other than Time Element
a. Procrastination
 Self-imposed delay
 Not knowing where to start
 Having other things to do
 Not able to schedule time with the boss
b. Perfectionism
 Prevent writer from getting started
 Afraid of making mistakes
 Insist on writing the report from the start to finish without revision
9. How to Overcome Reporting Delays and Barriers
a. Write along the way
 A typical work paper summary – outlining objectives, summary of testing, and
conclusion - is designed for ease of reviewing test results
 Paradigm Shift: - build a different kind of summary serving a dual purpose –
documenting results and providing material for the report.
 4 Phases of Audit Process
 Audit Planning
 Audit Fieldwork
 Audit Reporting
 Audit Follow-up / Monitoring Progress
b. Use standard components and frameworks to structure your thoughts
 Use known elements and organizational patterns upon documentation of ideas
during fieldwork.
c. Check for agreement of substance and strategy.
d. Compose the full report quickly and polish the final report
B. The Five (5) Attributes or Elements of Internal Audit Reports
1. Standard Components of Most Audit Reports
a. Condition
 Factual statement of the problem found,
 What actually exists?
 It tells what is happening now or in the past.
b. Criteria
 A standard
 Established by management, industry practice, common sense,
accounting principles, etc.
 Formalized in policy and procedure manuals, employees handbooks,
authoritative literature or guidelines
 More often not so clear cut or well defined or documented
 What should exist
c. Cause
 Most important of the5 attributes
 Most often overlooked
 Why does the condition exist?
 Why did it happen?

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  Type of causes
 Manpower or people
 Machine or systems
 Method or process
 Material or resources
 Environment or industry

d. Effect
 So what if we do nothing
 What’s the result if we don’t follow the procedures?
 What’s the implication or impact?
e. Recommendation
 States what can be done to improve the situation
 What should be done to correct the cause (not correct the condition)
 Must eliminate or address the cause.
 Must be practical, logical and cost effective.
 Should be developed in cooperation with management
C. How to Gather and Organized Data for Audit Report
1. Data Gathering and Organization
a. An essential step in the proper conduct of review.
b. Quality of data determines the quality of assurance report
c. Well-planned data gathering process and a systematic application of data gathering
techniques would result to the development of sound conclusions and
recommendations.
2. Source Information
a. Interviews with audit customers and personnel performing the works
b. Observations of activities, surrounding work environment and conditions
c. Documents such as policies, objectives, plans, procedures, standards, instruction,
specifications, drawings, contracts and orders.
d. Records such as inspections records, minutes of meetings, records of monitoring,
certificates
e. Data summaries, analyses and performance indicators.
f. Reports from external parties for example customer’s feedback
g. Computerized databased and websites.
3. Pointers in Data Gathering
a. Plan data gathering systematically
b. Fit data gathering schedule with operations people
c. Talk people in operations
d. Avoid projecting an expert image
e. Ensure that data gathered are complete and accurate
f. Record both facts and interpretations of facts
g. Use charts, diagrams, flowcharts and other devices to summarize the data
4. Method of Gathering Information
a. Making a list
b. Journalist’s questions
c. Mapping/ Flowcharting
d. Reading
Day 3
A. Preparing the Internal Audit Report
1. Some Assurance Needs of Management
a. Accuracy and reliability of accounting and operation data
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 b. Resources of the organization are adequately safeguarded against waste, fraud and
inefficiency.
c. Operating departments’ compliance with prescribed policies and procedures
d. Operational efficiency
e. Risk areas and problems in operation and solutions to address these risks.
f. Opportunities for improving operations and courses of action to take advantage of
opportunities.
2. Preparing the Report Outline
a. Report title or subject matter
 Must make the reader want to read the report.
 Must show the importance and benefit of reading it.
b. Topic discussed by captions
 Topic caption
 A word/phrase that identifies the topic/area of discussion.
 Talking caption
 Identifies the subject matter and indicates what is to be said about the
subject.
 More effective and useful in writing the narrative of the report
c. Arrange topics in order of importance
3. Incorporate Report Writing Into the Engagement Process
a. Phase one: Planning and Fieldwork
 Write the objective and scope
 Use dumping ang planning worksheets to gather information
 Complete comment/observation worksheet
 Review substance of comments/observations using the worksheets
 Present outline of report to line management
 Decide on overall organization of report
b. Phase two: Report Production
 Write report draft, including summary and conclusion
 Edit for style, conciseness and clarity
 Present final report to management
c. Auditors vs. Readers’ Logic
Auditors Logic Readers’ Logic
 What are the risks?  What are the results?
 Wat are the controls in place?  What are the problems?
 How should it be tested?  How big is the problem?
 How well is the control working?  Why does it matter?
 What exceptions or control  How does this happen?
weaknesses exist?
 What are the residual risks?  What has been done or will be
done to correct this?
 What should be done?

B. Qualities of Useful Auditing Information

1. Accuracy
a. Information is accurate if:
 Factual, not exaggerated
 Can be proven with evidence
 Can be demonstrated logically
b. Must be absolute or relative

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 c. Can be developed thru effective systems and procedures, sound judgement, and
scientific data gathering.

Degrees of Accuracy
 Absolute accuracy
 Relative accuracy
2. Clarity
a. Information is clear if:
 Message is received as intended
 Ideas interpreted as intended
b. Clarity could be attained through
 Right choice of words
 Effective sentence and paragraph construction
 Well-organized ideas and information
 Use of appropriate format
3. Conciseness or brevity
a. Information is concise if:
 Not too much nor too little
 Enough is enough
 Direct to the point
 Lengthy explanations presented in annexes and schedules
b. Concise is attained through:
 A KISS formula
 Easy to read and write
 One major idea in a sentence
 “meat clever” technique
4. Timeliness
a. Information is timely if:
 Given to the user when needed; otherwise, its value is diminished
5. Comparability
a. Information compared with related information is given meaning and significance
b. Types of comparison
 Comparison with pasts (growth trend, progress)
 Comparison with plan (performance evaluation)
 Comparison with potential (extent of improvement still possible)
 Comparison with competition (comparative performance with others)
6. Relevance
a. Entire report
 Information / conclusions/ recommendations useful to users
b. Parts of report
 Ideas or facts presented support entire report
7. Good Organization
C. Writing to Inform
1. Effective Attention Getting Openings
a. State your conclusion directly.
b. Write concretely and descriptively.
c. Use terms your readers understand.
d. Choose the information of greatest interest to your reader.
e. Design your opening to guide the reader.
D. Writing to Persuade
1. Getting Result from your Audit Report
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 a. Describe and quantity the problem
 Indirect presentation
 Prefaced by statements of scope, description of facts and consideration
of different interpretations.
 Conclusion and recommendation are at the end
 Used in meeting to counter resistance and build agreement step by step
 When management is hearing about a significant problem for the first
time
 When recommendation is controversial or counter to other alternative
solutions
 When the recipients are likely to be defensive or resistant.
 Direct Style
 More effective and useful in writing the narrative of the final report
 Used when line management were previously informed of your facts,
conclusions and recommendations, as well as their resistance and
defensiveness already diminished.
 No surprises to management
 Draws management to read supporting information and
recommendation
b. Show the effect from management’s point of view
 Effective audit reports do much more than present facts and recommendations.
 They offer convincing evidence of problems and opportunities and include
practical, beneficial recommendations for change.
 The value of your audit report lies in its ability to influence readers to change.
c. Overcome objections
 Writing constructively, not critically
 Avoid judgmental language and unsupported generalizations
 State positive ideas in positive language
 Provide balance and perspective
 Emphasize benefits, recommendations, and solutions
E. Writing Concisely
1. Causes of Wordiness
a. Filler phrased
 Stating the obvious
 Referring to the writer
 Labeling
b. Expanded modifiers
 Adjectives turned to phrases or clauses
 Redundancies
 Overstated phrases
c. Drawn-out verbs
d. Passive Voice
e. Repetition
f. Extra articles and prepositions
2. Managing details
a. Consider your audience and purpose
b. Summarize supporting data
c. Select convincing and useful information
d. Assess the value of the information
e. Present data in readable style
Day 4
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 A. How to Organize and Present Audit Findings, Conclusion, and Recommendations
1. What management gains from the conclusion
a. A well-written conclusion gives management the information, perspective, and
balance they need for decision making.
b. By highlighting your major comments and offering your judgment of their
significance, you can help management evaluate audit results and decide an
appropriate action.
c. The conclusion offers a vehicle for constructive commentary and solutions.
2. Six (6) steps to an Effective Conclusion
a. Answer the audit objective(s).
b. Choose concrete supporting information.
c. Use an appropriate and consistent tone.
d. Balance the positive and the negative.
e. Offer perspective.
f. Comment on management’s response.
3. Major Steps of Reporting
a. Oral presentation to line management
b. Written report to line management
c. Report to senior management, and
d. Report to the audit committee
B. How to Review and Edit Audit Reports
1. Constructive Editing
a. Know and apply the appropriate levels of editing
b. Build the writer’s pride of authorship
c. Talk to the writer
d. Know your own style
2. Variables Influencing Editing Style
a. The number of reviewers of the report
b. Time available
c. Experience and skills of the writer
d. Significance of the desired change
e. Degree of flexibility acceptable
3. Sources of Writing Friction
a. Supervisory rewriting
b. Reporting under pressure
c. Too much time spent on reports
d. Poor draft
e. Poor writing skills
f. Disagreements between auditors and their supervisors
g. Writing the reports far from audit site
h. Lack of client interest
4. Proposed Solutions
a. Develop a style manual for the audit activity
b. For large IAA, assign an editor to review reports before submission to supervisors
and up
c. Conduct training and coaching
d. Use of standard format

VIII. Learning / Insight Gained/ Essence, Relevance & Benefits of the Training to the Provincial
Government & Attendees
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 This course teaches us that reports are the end product of the audit process, and that it
is up to the auditor to convey the engagements' findings through these reports. The goals,
parameters, and outcomes of the engagement must be communicated. It must be timely,
complete, accurate, impartial, and well-written.
Writing a report should enlighten, convince, and produce outcomes. Condition,
criterion, cause, effect, and recommendation make up its standard parts. Report titles must
convey the significance and advantages of reading them. The auditor must refrain from
utilizing opinionated language, an accusatory tone, and emotional terminology while
producing the report. The report must be fair and objective, highlighting the advantages of the
solutions and proposals put forth.

IX. Application to Work

This training provides us with the fundamental knowledge required to write an
effective audit report. We are writing as internal auditors to inform and persuade. We must
state our conclusion clearly and unambiguously. We must write in concrete, descriptive terms
that our readers can easily understand.
We must write a well-written conclusion that provides management with the
information, perspective, and balance they require in making decisions. Highlighting our major
comments can assist management in evaluating the audit results and deciding on the best
course of action.

Prepared by:

ELEONOR Z. DE GUZMAN
Internal Auditor 1

Reviewed by:

ATTY. ELIJAH A. MOLATE – DE GUZMAN, J.D.

Attorney IV

Approved by:

ATTY. VIRGILIO I. MACASAET JR. , CPA, J.D.

PGADH/Internal Audit Head

Noted by:

MS. MA. ISABEL B. BEJASA

Chief of Staff

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