Also, it allows the auditee an opportunity to take immediate action if needed. Upon completion of the field work, the auditor prepares an audit report draft that contains a management summary and sections on background, audit purpose, scope, significant observations, and recommendations. Reviews of the draft report will begin with those people having direct responsibility for an area or condition needing corrective action. Thus, suggestions for changes, objections to phrasing, or questions on facts can be considered and addressed by the auditor before the draft is reviewed by higher departmental management. While the IAD is not adverse to changes that will improve the report, an audit opinion cannot be compromised.
Top management wants, expects, and is entitled to the auditor's opinion.
The draft review process is designed to ensure proper interpretation of what the auditor has written and, if there should be serious disagreement on interpretation of the facts, the report should clearly set forth the positions of both the auditor and the operating manager for the benefit of higher management. The auditor and departmental management review and discuss the audit report draft at the exit conference. It is the auditor's responsibility to make recommendations to correct control weaknesses. It is management's responsibility to initiate a corrective action, establish policy, and make the actual operational decisions. However, the auditor has the responsibility for evaluating whether the action does, in the auditor's opinion, correct the noted deficiency.