Internal auditors of NPD Ltd. have completed the internal audit of manufacturing division of the company and now have to communicate in writing the audit engagement result to the management. What are the objectives of is

The essential part of internal audit is the dissemination of the results of internal audit and reporting the findings to management, and those charged with governance. The objectives of issuing Internal Audit Reports on significant internal audit assignments are to: Share with the auditee, details of all significant findings based, on audit procedures undertaken; Allow management to understand the issues and take corrective actions Leads to improved performance and control framework Follow-up process to monitors the progress of agreed action plan and reports this progress to senior management and the audit committee. The overall objective of reporting results is to highlight the effectiveness of internal controls and risk management processes to enhance governance in line with the Internal Audit Charter. An Internal Audit report is basically a four-step process comprising of: What is Wrong? - Disclosure of findings and processes involved in arriving at such finding. Why it is Wrong? - Description of the findings-the root cause analysis. How to correct it?- Recommendations and Suggestions. What will be done?- Auditee's views and comments.