An internal audit report is a document that contains the formal opinion of the internal auditor regarding the account books of any company or the organization. At the end of the year, when it is time to provide the shareholders with the financial information of the company the internal audit report becomes very important. In some states or countries, it is mandatory for the companies to have their accounts audited by the internal auditors and provide the internal audit report. Just like any annual report, the audit report needs to be prepared and submitted in a very formal way. Therefore, it is vital that one prepares the internal audit report very carefully, without any errors or mistakes.
Internal audits have number of important services to company management. These reports will assist you to detect if there is any error or fault in company. With the help of such reports you can prevent fraud. By applying various methods such as testing internal control, and monitoring compliance with company policy and government regulation. Such kind of reports are also required for smaller companies even more than large companies. Because in a small business one cannot afford employee fraud, waste, or a government fine. Establishing an internal audit function provides a vital step in the growth of a small business.
The common elements that are present in every internal audit report are the recommendations, conclusion, body of the report, abstract, executive summary, table of contents and the title page and so on and so forth. The internal audit report can be easily explained as the formally written statement about the financial values of the company along with any of the milestones that were achieved by the company in the given fiscal year. The internal audit report has to be prepared by the company’s official auditor. From the business point of view, the internal audit report has a lot of worth, as it contains valuable information about the corporation’s financial situation. With the help of the internal audit report the shareholders can keep in touch as well as updated with the company’s financial situation.