An organization or business assesses its internal controls, risk management, and operational processes through an independent and systematic evaluation process. This process is the internal audit.
The five elements of an internal audit usually consist of the following:
Executive Summary- This section overviews your audit findings, its key features, and the overall impact on the organization. You basically highlight the most important points about management.
Introduction- The purpose is to provide background information about the audit scope, objectives, and methodology.
Audit Findings- This section presents the detailed findings discovered during the audit process. It includes a comprehensive analysis of the identified strengths, weaknesses, deficiencies, or areas of non-compliance.
Recommendations should be practical and actionable, prioritizing risks or areas requiring immediate attention. They may include steps to enhance internal controls, streamline processes, mitigate risks, or improve compliance.
Conclusion- Summarizes the internal audit committee report's main findings and recommendations and emphasizes the findings' overall significance and potential impact on the organization.