Auditing - Home work

ACC 645: Audit Observation Template

Criteria

This is where you will list what you are measuring against: the objective, a set number, a policy, etc. (standards, measures, expectations)

Condition

This is where you describe what currently exists, with evidence as applicable.

Cause

This is the section where you identify what caused the problem. The recommendation should directly address fixing this cause.

Effect

This is where the impact of the condition is quantified in terms of dollar figures and quantity of errors, if available. If it is impossible to quantify the impact or the condition has not yet resulted in a negative impact, a simple statement about increased risk is appropriate.

Recommendation

This is where you make your recommendation, usually with input from those who must implement the recommendation, to correct the problem. The recommendation MUST directly address what you identified as the cause above.

Management Response

This is where the management responsible for corrective action is able to provide a brief written response detailing action plans, actions completed, or an occasional “agree to disagree” statement. Dates for completing corrective action are also typically included here. (For this exercise this section will remain blank.)