What audit topics are appropriate to present?
1. Risk information
Risks are a constant and dynamic element. Consequently, aligning with the fundamental audit process, it is crucial to emphasize the latest and most accessible risk information for the audit committee. Open discussions centered on risk, based on the most recent data, should be integral to the annual risk assessment. Furthermore, any additional shifts in the organization's risk profile should be revisited periodically throughout the year and addressed accordingly.
2. Present audit results and trends
Avoid getting caught up in minutiae; opt for providing overarching trending information related to audit outcomes. Illustrating trends offers a more comprehensive depiction of the organization's overall status. Examples could include a variety of audit findings, categorization of audit outcomes by business units, or changes in the status of different control classifications. The specific details reported will vary based on the industry and company.
Collaborate in open discussions with committee members to assess the relevance of the captured information to their needs and identify any concerns addressable through trending data. Utilizing an effective Audit Management tool can significantly reduce the time invested in gathering this data. Unfortunately, audit management teams often expend days or weeks compiling information manually, risking the omission or distortion of pertinent and trending data. Embrace those available tools to expedite and enhance the efficiency of the process.
3. Know your audience and focus on what matters to them
Identify the specific internal audit opinions or selective assurances that hold value for the audit committee. Many committees prefer opinions on specific areas or processes rather than a broad, blanket opinion. Audit reports traditionally communicate the effectiveness of financial controls, risk management processes, governance processes, or regulatory compliance. Explore the possibility of collaborative reporting with other risk and control functions such as Enterprise Risk Management (ERM) teams, Compliance departments, Fraud Investigators, SOX and Control groups, Legal, or Health and Safety for a more comprehensive perspective.
4. Include an assessment of the internal audit department
Audit Committee reports should also include an assessment of the internal audit department’s quality and performance. The reporting should go beyond basic statistics on the audit staff (e.g., experience and certifications) and external quality assessment reviews, and include information on the specific KPIs from interaction with stakeholders, possibly even employing Balanced Scorecard techniques.
5. Present the most valuable information and include impactful visuals
In formal internal audit presentations, it's essential to tailor the materials to meet the specific needs of the audit committee. When utilizing a slide deck, make sure the slides are succinct and pertinent, all the while sustaining an engaging and compelling presentation style. Avoid overwhelming the audience with excessive information and instead focus on delivering what the committee needs and wants to know. Opt for presentation slides featuring summary data in a clear, easy-to-read bullet format, complemented by color-coded charts, dashboards, and heatmaps. Avoid text-heavy slides to maintain a brisk and captivating pace, preventing the audit committee from losing interest.
Also consider using data visualization techniques when presenting the audit findings to help improve the effectiveness and efficiency of the audit report. By introducing data visualization techniques and tools, internal auditors can produce more impactful audit reports that effectively communicate their key messages, increase stakeholder engagement, and support data-driven decision-making.
