Writing of Management Audit Report

Report Writing

Dinesh Pant

Process of Management Auditing

Step I: Preparing audit plan – getting approval / informing the organization to be audited in advance

Step II: Conducting field studies (auditing at workplace level), involving various methods of data collection /auditing

Step III: Analysing / verifying data

Step IV: Writing audit report (with required discussion before itys finalization)

Report Writing: What is it is actually?

A report is a written statement or document prepared after a detail investigation / study / review /observation of a situation – its state, causes, effect and solutions

It is simply a narration of “what happened” to all concerned: A kind of story telling with coverage of: • What was done • How it was done • What was found • What was conclusions • What was recommended / instructed (in case of auditing)• What has been supporting evidence / references

Types of Report

Based on Types Based Preparation Stage

Investigative / research report Baseline survey report Feasibility study report Evaluation report Implementation progress report Audit report Any activity completion report

Preliminary draft report

Based on Presentation

General Descriptive Report

Technical Prescriptive report

Final report

Areas of Management Auditing (MA Directives 2067)

1) Organization policy and behaviours2) Organization structure3) Work process and layout4) Personnel management and records5) Financial management and goods management 6) Service delivery and transparency7) Use of information technology8) Management of employee grievance9) Miscellaneous

Methodology of Auditing (MA Directives 2067)

1) Observation2) Discussion3) Interview4) Questionnaire5) Document / evidence studies6) Study and review of past reports7) Other methods as deemed appropriate by audit team

Report Format (Prescribed by MA Directives 2067)

1) Management Audit Team2) Introduction to the organization audited3) Duration of auditing4) Situations observed through management auditing, e.g.,

organization structure, work processes, etc5) Completion/ Execution state of instructions / recommendations

made in earlier report6) Overall observation and opinions of audit team7) Recommendations of audit team

Annexes

Contd…Prescribed Format for Management Auditing - Annexes

Annex 4: Statement of approved and vacant positions of the organization

Annex 5: Statement of transfer and placement of staffAnnex 6: Staff sent for training during report periodAnnex 7: Statement of placement / transfer on “Acting basis’Annex 8: Statement of staff equivalent to those on “Acting” basisAnnex 9: Staff not having placementAnnex 10: Statement of “Fazil” staff Annex 11: Statement of staff on deputationAnnex 12: Statement of advances and irregularities

Previous Mgmt Audit Report Formats

Report on Upper Tamakoshi Hydro Project Report on Department of CustomsChapter I Background Auditing Objectives Audit Methodology Audit scope Limitation of auditing Report Structure Upper Tamakoshi Hydro Project

Chapter II: Positive aspects: Reform aspects Suggestions (Coverage: Org policy and behaviours, org structure, work procedures and physical lay out, service delivery and transparency, personnel mgmt and records, financial and goods mgmt, etc. – as stated in Directives)

Chapter IIIConclusions and recommendations

Chapter I Background Objectives of management auditing Scope of auditing (as specified in Directives) Limitation of management auditing Methodology Report structure (chapter plan)

ChpaterII: Observed subjects from during auditing Introduction to Custom Dept (history, objectives

functions, legal provisions, etc.)

Chapter 3: Observed Situation during auditing Positive aspects Remarks Suggestions

Chaper IV: Conclusions, with acknowledgement

Others reports (e.g., Auditor General’s Performance Audit Report 2071)

Coverage• Situation of objective fulfilment• Comparative review of targets and

accomplishments• Compliance to law, procedures and

directives• Physical infrastructure and utilization• Information system and record mgmt.• Manpower management• Utilization of existing capacity• Monitoring and evaluation system• Situation of program execution• Transparency and accountability• Program execution • Mobilization of financial resources• Coordination situation• Economy and timeliness in procurement

Report format (Youth Self Employment Fund)• Background of organization (Fund)• Rationales for choosing the organization for perf. audit• Policy provisions related to the Fund• Objectives and targets• Financial provisions• Objectives of auditing• Scope of auditing• Auditing methodology• Limitations of auditing • Observed situation (Positive, Problems / challenges,

areas of reform)• Financial resource mobilization, budget, Grants, bank

loan, investment, etc, with replies of organization)• Manpower management (insurance, training, etc)• Internal auditing• Monitoring and evaluation• Conclusion

Behavioral guidelines for writing a report

Basic Rules: Concise, simplicity, clarity and describing

• Be clear why report is being prepared• Be clear whom report is being written for• How much time is available for writing• What resource is needed for report writing• Make the report precise and specific• Make sentences short, avoiding complex sentences• Present facts / findings with logical interpretation • Make it reader-centred• Giving visual impressions – with attractive cover, page lay-out, pictures, diagram,

binding

Other guidelines for style of report writing

Other Procedural Rules• Avoid slang / jargons• Use minimum quantitative terms / follow general rules when quantitative terms needed• Try to explain / describe rather than giving opinion• Avoid calculation / formula in the main text• Use proper tense of expression• Use abbreviations only after giving their full forms• Select proper pronouns Third person preferable on many occasions Passive sentence

preferable• Use proper form of reference / follow rules of quoting, e.g., Ibid, op.cit, et.al.• Avoid common grammatical mistakes / errors• Proof reading / corrections (lastly)• Take care of size / type of fonts for texts, captions / sub-captions – Margins

Report writing is a skill; it is creative activity – like weaving a carpet!

Indicators of good report writing

• Good start • Adequate coverage – with focus• Rich content• Relevancy of content• Factual• Logical sequence / flow• Language• Organization of report

Suggested Tentative Format for Field Studies on Mgmt AuditingExecutive SummaryTable of ContentAbbreviations

Chapter I: Introduction• Background (Rationales for choosing organization for auditing)• Objectives of auditing• Scope of auditing• Methodology of auditing• Composition of auditing team

Chapter II: Profiles of Organization Selected• History, Objectives• Functions• Policy and legal provisions related to organization• Targets and accomplishment• Execution of previous directives, recommendations, investigation report, if any)

Chapter III: Overall Observation of Situation (with coverage of but not limiting to 9-point scope stated in Directives) • Positive Aspects• Problems / challenges• Areas of Reforms (Directives)

Chapter IV: Conclusions and Major RecommendationsAnnexesReferences

Verbal Report Presentation (Two phases)

• Presentation planning

• Presentation execution:

Presentation: Preparation Phase (Planning):

Identify / consider the subject to be presented (what?)

Set objective of the presentation (why?)

Identify the audience characteristics (whom?)

Find out the venue (where?)

Formulate the content (listing the main points) and methods of presentation (how?)

Collect relevant data / information to support your subject or points

Prepare a reference note (a full text, if necessary) to be consulted / distributed

Choose / prepare presentation materials

Consider physical appearance (dress /hair, etc.)

Cross-check the preparation

Rehearse the presentation

Presentation: Implementation Phase (Actually Presenting)

Reach the venue before time and make sure that everything is in place and fulfill all formalities (e.g., greeting)

Highlight the main objectives and outline of your presentation Make presentation on a point-wise basis, elaborating each point (with a

bang!) Keep observing feelings (verbal / non-verbal) of the audience Test understanding of the audience Manage your feelings (expressing / suppressing emotions – anger,

nervousness) Show respect to audience (building, supporting, avoiding disagreement,

etc.) Summarize the main points and conclude the subject for meeting the

objective