Throughout the audit process, the internal auditors gather facts. They are supported by written documents or verbal statements. They are called evidence, work papers, supporting documents, or in general, documentations…etc.
In the real world, there is no rule regarding the amount of evidence that the auditor should or must collect. In writing the audit report, unlike the external auditor, there is no pre-set template. The internal auditor does not follow a specific format.
Pictures, graphs, and tables, just to name a few, are in internal audit reports but not in external audit reports. All these are subject to the individual company policy and internal audit’s philosophy and art. Sampling technique is also in use; however most of the auditors use judgmental sampling more than statistical sampling.
The external auditor (the CPA) has to “over document” their audit process in anticipation of unexpected law suit by a client or the public, contrary to the internal auditor who does not expect any law suit by any insider (auditee). Therefore why document the audit?
Maintaining all supporting working papers in an electronic format will impose problems related to filing, storing, and retrieving the historical working papers as a result of changes in applied software.
Allow the internal auditor to use a recording device (tape recorder or other media) to record the auditees’ interviews without any legal consequences.
If the auditee accepted the findings and recognized them, why internal auditors should waste their time documenting the audit findings and propose corrective actions? This is a waste of paper and needless cost of storing them.
A verbal presentation to top management at the end of the audit process will suffice.
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