THE ART OF REPORT WRITING for BHILAI STEEL PLANT, KURG and local chapters of ICAI&IIA SATURDAY 4 TH AUGUST 2007

The Art of Report Writing

Communications Skills 1.Command over language 2.Clarity of thought 3.Writing skills 4.Vocabulary 5. Correct grammar 6. Be brief 7. Preci writing

STRUCTURE OF THE INTERNAL AUDIT REPORT 1.Title page 2.Covering letter 3.Circulation 4.Introduction 5.Scope of audit 6.Methods adopted 7.Disclaimers 8.Review of previous reports 9.Executive summary 10.Recommendations 11.Content

Title Page 1.The unit covered 2.The period covered 3.Report number

COVERING LETTER 1.Should be addressed to the head of unit 2.Should be a brief preci of the report 3.Briefly define scope of audit 4.Highlight major / high priority findings 5.Give reference to the detailed report

CIRCULATION 1.Should classify sections of the report 2.Should specify who all are getting a copy of the report 3.Should also specify which section of the report each one is getting

INTRODUCTION 1.Briefly introduce the assignment, the nature and its extent 2.Define the scope of audit clearly mentioning the areas covered 3.Define the period covered 4.Define the methods adopted for the audit 5.Define how you have treated responses from the auditees

DISCLAIMERS 1.The report should clearly mention the areas which have not been under taken during the audit. 2.The approach to audit should be clearly define 3.Clearly define the responsibility which the Internal Auditor has not under taken for the assignment.

REVIEW OF PREVIOUS REPORTS 1.Give reference to the report number, period, page no. & reference paragraph which is being reviewed. 2.Briefly give the issue involved. 3.Describe what has been verified and to what extent 4.Describe actions taken by the auditee 5.State whether actions taken are satisfactory and effective 6.The review report should be brief and precise.

EXECUTIVE SUMMARY 1.Give reference to the page and para of the detailed report 2.Briefly summarize your findings 3.Briefly state auditees comments 4.Your counter comments, if any.

RECOMMENDATIONS 1.Give reference to the page and para of the detailed report. 2.State your recommendations in a summarized manner 3.Give your general comments

DETAILED REPORT 1.This shall be the body of the report 2.Each area of audit should be segregated into different sections giving titles and sub-titles wherever required. 3.Your findings should be serially numbered for easy reference 4.For each area of audit, define the documents inspected 5.Define the size of sample and how it has been selected 6.Explain your observations in a lucid manner and mention the amounts involved with dates and voucher numbers wherever applicable. 7.Give comments received from the auditees 8.State a rejoinder wherever required

PRESENTATION 1.Your report should have page numbers 2.Each page should have appropriate settings and margins 3.Give an index if required 4.All pages should be of uniform size 5.The report should be appropriately bound 6.Apart from the circulation, office copies for record and Internal Audit Department library should be prepared.

Thank You