How to Write Effective Audit Observations: The Principles for Bullet Proofing Your Audit Findings

An effective audit observation starts with a structured process. This 90-minute webinar on how to write effective audit observations uses the 5Cs approach recommended by the Institute of Internal Auditors: criteria, condition, cause, consequence (effect) and corrective action (recommendation).

You'll review each component in detail, with examples: the standard you compare against, the current state, why the condition falls short of the criteria, the risk if nothing changes, and the action needed to manage that risk.

Used consistently, the 5Cs help you complete and report observations on time and present them in a logical, complete and objective way, which improves client buy-in and agreement with your recommendations. The structure, supported by your work papers, also gives supervisors and managers a clear basis for review.

• Explain the five components of an effective audit observation
• Define the criteria used to assess the area under review
• Describe the condition and the cause of any gap
• State the consequence and risk if the issue is not corrected
• Write actionable corrective action recommendations
• Present observations logically, completely and objectively to win management agreement

• Criteria: the standard used to compare the area under review
• Condition: the current status used in the comparison
• Cause: why the condition does not meet the criteria
• Consequence: the risk if the issue is not corrected
• Corrective actions: the actions needed to manage the risk
• Examples for each component

No part of an audit report matters more than the observations, which distill weeks of reviews, analysis, interviews and discussions. How well you communicate it decides whether management accepts your findings and acts on your recommendations. A well-written observation is concise, understandable and persuasive, with actionable recommendations.

This session suits chief audit executives, audit directors, managers, supervisors and staff, government and compliance auditors, internal control and quality control specialists, public accountants and analysts.

• Chief Audit Executives
• Audit Directors
• Audit Supervisors
• Audit Managers
• Staff Auditors
• Government Auditors
• Compliance Auditors
• Internal Control Specialists
• Public Accountants
• Accounting Analysts
• Business Analysts
• Quality Control Specialists

Jonnie Keith has been in auditing for over 50 years. He retired in 2012 as the Assistant General Manager (AGM) of Internal Audit with the Metropolitan Atlanta Rapid Transit Authority (MARTA) in Atlanta, Ga. He served in that capacity for over 10 years and was responsible for administering the overall audit activities. In this position, he was also responsible for the review and approval of all internal audit correspondence including audit reports, executive summaries, internal and external correspondence, etc.

Prior to that, he worked at MARTA as the Operational Audit Manager and Senior Contract Compliance Auditor. He also worked at Norfolk Southern Railway (formerly Southern Railway) as a senior operational auditor and started his career at the Federal Reserve Bank of Atlanta as a bank examiner.

Jonnie Keith received a BA degree in Economics from Clark Atlanta University (formerly Clark College). His certifications include:

• Certified Internal Auditor (CIA)
• Certified Fraud Examiner (CFE)
• Certified Government Auditing Professional (CGAP)
• Certified Internal Control Auditor (CICA)

He has been a volunteer seminar instructor for the National Office of the Institute of Internal Auditors for several years.