In some instances, corrective action may be taken during the fieldwork that will negate the need for making a recommendation in the audit report. After all steps indicated in the audit program have been completed, and management has been given an opportunity to discuss all issues that have arisen, the auditor drafts an audit report. The report may include one or more recommendations. Audit recommendations are constructive suggestions for improvements. They must be feasible, cost beneficial, and practical.
Auditors seek to acknowledge notable accomplishments and operational strengths in the audit report.
A copy of the draft report is provided to management for comment. This provides an opportunity to clarify audit matters, obtain management replies to audit recommendations, and resolve any conflicts or disagreements prior to the issuance of the final audit report. After the exit conference, management is provided with response forms on which they indicate their agreement or disagreement with the audit recommendations, and a time frame for implementation of recommendations. These must be returned within 20 business days.