Executive summary
Executive summary is one of very important part of internal audit report because it the main part which defines the whole report and higher management usually read this part to get the picture of whole report and position of company audited or process which is audited.
First part is opening paragraph in we tell the whole story like .i.e
We have been appointed by xxxx company for carrying out the internal audit function of the company. In this respect, we have formulated our scope of the assignment, limitations and specific additional understanding, which have been agreed with the management of the company with our engagement letter referenced xxxx dated xx/xx/xxxx.
In second paragraph it is coated that area to be audited and time taken, and that audit pan approved by audit committee. In it we tell that report comprises of audit scope and findings with respect to our internal audit of the company for the internal audit, in accordance with the approved audit plan. The sample was judgmentally selected to include representative transactions across the business areas noted in the report, for the audit period agreed in the approved audit plan.
Based on the scope of work and the audit procedures carried out, on a test basis, by us and to the best of information and explanations provided to us by the management, we report details of our findings in the report. The format of our report is such that we only report on the short comings and exceptions noted by us. Therefore, the observations noted in the report are where control objectives are not met or where we believe improvements can be made in the efficiency or effectiveness of procedures. Below is the summary of key issues, observed or noted during the course of our assignment.
Process wise status of issues
| Sub –Process | High | Medium | Low | Total |
| Number of issues | ||||
| SALES | – | – | – | – |
| RECEIVABLE | – | – | – | – |
| INVENTORY | – | – | – | – |
| CASH | – | – | – | – |
| EXPENSE | – | – | – | – |
| CAPITAL | – | – | – | – |
| WORK IN PROGRESS | – | – | – | – |
| HUMAN RESOURCE | – | – | – | – |
| TOTAL | – | – | – | – |
In the above table we give all processes and number of issue with their rating.
Summary of key audit findings
In this part we give the summary of all the audit finding and there rating and concern management and detail report reference
| Process | – |
| Findings | – |
| Issue Rating | – |
| Management’s Concurrence | – |
| Detailed Report Reference | – |
Process wise status of issues raised in previous audit
The following table exhibits the business process wise status of un-implemented actions, partially implemented actions and implemented actions against the total actions plans agreed during the previous audit
Audit closing meeting
Further to our draft report sent to the management on xx/xx/xxxx, a meeting to review the said draft was conducted between the management and representatives. After discussing and incorporating management’s responses on our findings, a final report was issued by us on xx February 2010. The attendees at the above meeting were:
| S. No. | Attendees | Designation |
| 1 | ||
| 2 |
Our findings audit as mentioned above have been discussed with the management of the company. However, finalising the management action plans and their implementation is not part of our scope of work. As per approved internal audit plan, a separate report shall be issued, for the follow up of corrective action plans agreed with the management for the findings in our reports issued earlier.
Overall Assessment
In this we Assess how the company is and from audit prospective and how we rate the company ,