"Communicating audit results effectively is a very crucial aspect of the audit engagement." Internal auditor must prepare a draft issue sheet, draft report of all the issues identified during the audit engagement and the

An Internal Auditor is required to draft issue sheet detailing the issues identified during the audit. A detailed issue sheet should include the following: Title - What is the issue? Detailed Observation - Detailed explanation of the issue or gap? Risk Rating - Critical / Major / Moderate Root cause - Why did this happen? Exposure / Impact - So what? What is the risk? What is Implication of risk? Recommendation - What do we do now? Management comments with clear action plan Responsibility and Due date Following key considerations should be made in communicating audit issues: Communication with client management should take place throughout the audit process. Audit issues/reports should be communicated in detail with crystalize risk / exposure and specific business impact. In case of any fraud / Red Alert, issue must be reported on timely basis to the highest appropriate level of management keeping in mind confidentiality and sensitivity of the issues. Must ensure that all the audit issues noted during the audit are part of the draft and final audit report issued to the management. Proper review of the audit report is done by the Chief Audit Executive or Audit In-charge before communicating results with the management.