Responding to Audit Findings

All audit clients are required to provide a written response to audit findings. The response represents management's plan for correcting or improving the finding situation. All responses are included in the final audit report that is distributed to senior management, the Board of Governors, and the external auditors.

Writing an audit finding response can be relatively easy if the following guidelines are used:

  • Respond directly to the finding and its recommendation(s)
  • Provide specific actions that management commits to take to correct the finding
  • Make your response clear and concise.
  • Exclude information that is not pertinent to the finding or its corrective action plan
  • Identify specific positions, if applicable, responsible for implementation
  • Provide a specific and realistic timetable for implementation
  • Example:

    The department does not have written policies and procedures.

    The department should perform the following:

  • Develop and document all of its significant business processes
  • Make the policies and procedures available to all personnel
  • Ensure they are accurate, complete, and current at all times.
  • Revise policies and procedures for changes in business processes and policies. This is particularly important when new systems are developed and implemented or other organizational changes occur.
  • Communicate significant changes to all affected personnel immediately to ensure they are aware of any revisions to their daily duties and responsibilities.
  • In the event that there are changes in personnel (i.e. new employees are hired, promotions granted, etc.), documented policies and procedures will facilitate training and provide guidelines for the respective positions.
  • Management's Response
    We agree with the auditors' comments, and the following action will be taken to improve the situation. We will have each unit supervisor to document the policies and procedures for their respective business processes by the end of the first quarter of 20XX. We will then consolidate these documents into one user manual that will be available to all staff members via our website. Revisions to the users' manual will be made as needed to ensure the manual is current at all times. The staff will be advised of all revisions.