In the audit world it is vital that the report development process follows a strict structured process in order to communicate the appropriate information and yield accurate and informed findings and recommendations. This presentation represents a brief overview of the process... RAM

1. Writing Audit Reports
by Objectives _
Training Course Debrief Session
Presented to:
Internal Oversight and Compliance (IOC) Team
By:
Richard A. Murray
Program Analyst – IOC
Office of Personnel Management
11/15/2011

2. Debrief Disclaimer Notes
This deck reflects an unofficial - high-level post-training debriefing presented I delivered to the Internal
oversight and Compliance team (IOC) at the Office of Personnel Management, Washington DC, on November
15, 2011.
The concepts discussed throughout this deck were formally presented during a three (3) day working session
conducted at the Graduate School USA in Washington, DC.
The total session comprised a mix of instructor led lectures, case studies, group projects, reading assignments
and other relevant activities designed to optimize and re-enforce better knowledge transfer and
understanding.
The content and all of the materials herein reflects an overall summary of my particular classroom
observations, interpretation, interactions with other attendees, personal notes, topic summaries and other
understandings ascertained over the course of the training session.
While I believe this deck to be factual accurate and representative of the subject matter presented during the
three day session, I make additional claims, nor hold the Graduate School USA responsible or liable for any
comments or statements made in this debriefing presentation.
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 2

3. Key Course Discussion Topics
1. Concept of telling a story – the report
2. Three audit objective elements:
− IS, IF1 & IF2
3. Formula for writing objectives
− Objective = Subject + Performance Element
− Formulating a Yes/No question about the subject &
performance aspect
− Consequences : Significance
4. Defining critical audit Performance Aspects
5. Review of the Finding Schematic Model
− Criteria / Condition / Effect / Cause / Recommendation
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 3

4. Key Course Discussion Topics (Cont’d)
6. Process vs. Performance Aspect Buzzwords
7. Results vs. Process auditing produce different findings
8. Overall Objectives with Sub-objectives
9. The Finding Synopsis
− Quick-shot Summary (executive summary like)
10. Advance Organizers
− Executive Summary
− The Topic Sentence
− Adding Captions
− Visual Aids
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 4

5. Concept of telling a story
The audit report…
• Demonstrates a potential systematic business unit, or
organizational problem
− May apply to other units outside of the one being audited
• Helps formalize corrective actions
• Provides a history of the problem (Condition)
• Gives credit where credit is due
• Provides perspective for new management
• Sets up institutional memory
• Shows response to mandates, laws, requirement, etc.
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 5

6. General Class Take-aways
• Appendices – many agencies have begun moving
scope, methodology and other specialty data to the end of the
report
• Executive summary should be a maximum of 150 words and
two (2) pages!
• Performance aspects drives the findings
• Sub-objectives help define topic sentences for the report
• A finding is the answer to the questions in the audit objectives
• Match data to the elements
Data
− Data is non-targeted information Evidence
− Evidence is data/information used to support the finding
• Criteria Performance tie backs:
− Industry Stds, laws, Regulations, Policies, Historical Stds, Best Practices, etc.
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 6

7. Three Audit Objective Elements:
Yes or No?
• IS - there a problem?
− Criteria Condition
(expected) (Actual)
• IF1 - yes, does it matter?
− Effect (Tangible impact)
• IF2 - it matters, what would have to change to solve
it?
− Cause
Performance Aspects drives the finding!
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 7

8. In a Perfect World…
• IS: Criteria Condition overlap = no problem
• IF1: Effect illustrates the consequences for the mission
when criteria & condition do not overlap
• IF2: Cause illustrates the significance of the
consequences
− What caused the condition?
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 8

9. In a Perfect World…
• IS: Criteria Condition overlap = no problem
• IF1: Effect illustrates the consequences for the mission
when criteria & condition do not overlap
• IF2: Cause illustrates the significance of the
consequences
− What caused the condition?
Critical: It is always advisable to identify the problem condition compared
to the criteria first, before focusing on process or procedural effects!
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 9

10. The Findings Schematic
Criteria
(Expected Performance)
Cause Condition Effect
(Significance) (Actual Performance) (Consequence)
Recommendation
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 10

11. The Findings Schematic
Criteria
Condition
(Expected /Actual
Performance)
Cause Condition Effect
(Significance) (Atual Performance) (Consequence)
Recommendation
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 11

12. The Findings Schematic
Criteria
Condition
(Expected /Actual
Performance)
By fixing the
“Cause” you
eliminate the
Cause condition &
Effect
(Significance) (Consequence)
eliminate the
“Effect”
Recommendation
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 12

13. Performance Process
Aspects Buzzwords
Time Quality Process Hints
- Promptness - Eligibility - Procedures
- Frequency - Safety - Practices
- Duration - Accuracy - Controls
- Timeliness - Security - Methods
- Due Date - Satisfaction (specs) - Systems
Quantity Cost - Process
- Completeness - Budgets - Protocol
- Amount - Expenses - Etc.
- Numbers - Revenue
- Sufficiency - Opportunity Cost
- Min./Max. - Excess Cost
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 13

14. Results vs. Process Objectives
Depends on the type of questions being asked
• Produce different kinds of findings
• Can be tied to either a process buzzword or performance aspect
Objective A:
Are agency supply centers paying vendors for purchased supplies in a
timely manner?
Performance Aspect
Objective B:
Are agency supply centers, in paying vendors for purchased
supplies, following prescribed procedures intended to assure that
vendors are paid in a timely manner?
Process Aspect
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 14

15. Executive Summary
I. Background Section
• Two finger high rule – no more than two paragraphs, each no more than
two fingers high; using well defined topic sentences
II. Objectives Section
• State the purpose or the aim of the audit or program review
III. Results in Brief Section
• A brief statement of the problem (refer to IS, IF1, IF2 & Finding synopsis)
IV. Recommendation Section
• What action(s) is required to solve the problem
V. Management Comment Section
• Include enough commentary to show whether mgmt concurs or not with
the finding / recommendations
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 15

16. Report Outline Template
I. Introduction
A) Background
B) Objectives
C) Scope
D) Methodology
II. Results of Audit
A) Finding Synopsis Paragraph
B) Discussion of Finding / Topics
C) Recommendations
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 16

17. Report Outline Template
I. Introduction
• All about establishing creditability!
• Remember, primary audience is/are readers outside of the audit!
A) Background
• Who was audited
• Program’s target population
• Program mission/purpose
• Description of audited entity’s responsibilities
• Statutory basis for the program
• Organizational structure
B) Objectives
• Why we (program review team) undertook the assignment
• The underlying purpose of the audit; including identifying issues
outside of the scope – (GAGAS par. 8.10)
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 17

18. Report Outline Template
I. Introduction (Cont’d)
C) Scope
• What was covered / Where / When
• May include population size, dimensions, transactions, etc.
D) Methodology
• Identify analysis design and state why the design was chosen
• Record sources of data used and any limitations in data
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 18

19. Report Outline Template
II. Results of Audit
• Sufficient, appropriate evidence to support the findings and conclusions
in relation to the audit objectives
A) Finding Synopsis – (Everything leads to the finding)
• Finding may be presented in synopsis form for the convenience of the
reader – establishes a quick/brief overview or summary of finding
before entering an extensive discussion of details
• If a finding can not expressed in synopsis form, you probably don’t
understand the finding, or no finding exists
• Refer back to  IS, IF1 and IF2
• Answer effect and cause objectives, where appropriate
• Keep the number of number low – no more than 5 numbers
• Keep sentences relatively short – readable on the fly
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 19

20. Report Outline Template
II. Results of Audit (Cont’d)
• Sufficient, appropriate evidence to support the findings and conclusions
in relation to the audit objectives
B) Discussion of Finding / Topics
• Present evidence
• Consider difference audience for overview versus detail
• State consequence (Effect) in quantitative terms, when possible
C) Recommendations
• Relevant to findings / cause
• Doable, practical and time sensitive
Nov. 15, 2011 Richard A. Murray (IOC) – Debrief Session 20

21. Questions
& Comments