Introduction to Classes and Objects

  CHAPTER 4

CNS Audit Report

 Objective

 Objective

•

Given  a completed CNS checklist, write

an Audit/Inspection report according to

CAA audit reports’  templates.

 Report-Definition

 Report-Definition

•

Reports are documents produced to

communicate specific information to an

identifiable audience from an

identifiable source

Audit Report

Audit Report



An audit report is the formal representation of audit findings.

An audit report is the formal representation of audit findings.



The audit report is the end result of an audit and can be used as a tool

The audit report is the end result of an audit and can be used as a tool

for;

for;



 requiring action,

 requiring action,



altering operations,

altering operations,



enforcing accountability, or

enforcing accountability, or



making decisions.

making decisions.



An effective audit report is essential to making sure the results of your

An effective audit report is essential to making sure the results of your

audit are presented in a way that is useful to the auditee and to

audit are presented in a way that is useful to the auditee and to

ensure compliance.

ensure compliance.



Before getting into the specifics of writing an audit report, it is

Before getting into the specifics of writing an audit report, it is

important to understand the objective of the audit report.

important to understand the objective of the audit report.



Having these in mind you should write a report that meets the

Having these in mind you should write a report that meets the

objective it is supposed to.

objective it is supposed to.

Audit Report

Audit Report



An audit report summarizes the results of an audit

An audit report summarizes the results of an audit



It gives a factual account of the audit

It gives a factual account of the audit



Highlights observations made and if applicable

Highlights observations made and if applicable

recommendations

recommendations



An audit report is prepared by the team leader in

An audit report is prepared by the team leader in

coordination with team members

coordination with team members



It should be approved by the head of inspectorate (as

It should be approved by the head of inspectorate (as

applicable) before submission to the CNS provider.

applicable) before submission to the CNS provider.

Objective of Audit Reports

Objective of Audit Reports

1. Illustrating non-conformities:

1. Illustrating non-conformities:



The main goal of any audit report is to illustrate where

The main goal of any audit report is to illustrate where

the ANS-CNS provider does not conform with

the ANS-CNS provider does not conform with

standards, rules, regulations or procedures that it is

standards, rules, regulations or procedures that it is

supposed to.

supposed to.



It is important to clearly identify the non-conformity, as

It is important to clearly identify the non-conformity, as

well as the standard the CNS provider does not

well as the standard the CNS provider does not

conform with.

conform with.



It is then important to demonstrate which evidence

It is then important to demonstrate which evidence

you used to confirm the non-conformity.

you used to confirm the non-conformity.



The goal is that each non-conformity will contain

The goal is that each non-conformity will contain

enough information so that the receivers of the audit

enough information so that the receivers of the audit

report can rectify the non-conformance.

report can rectify the non-conformance.



.

Objective of Audit Reports

Objective of Audit Reports

2. Outlining positives:

2. Outlining positives:



An audit report should not just include negatives. This is especially true

An audit report should not just include negatives. This is especially true

for compliance reports, and operational audits.

for compliance reports, and operational audits.



This allows the organization to focus on areas that are working and

This allows the organization to focus on areas that are working and

apply these to other areas.

apply these to other areas.

Example

Example

, if you are conducting an audit to evaluate if an CNS provider

, if you are conducting an audit to evaluate if an CNS provider

meets training requirements, you may say, "The audit revealed that the

meets training requirements, you may say, "The audit revealed that the

current training program meets or exceeds requirements".

current training program meets or exceeds requirements".

3. Providing Opportunities for improvement:

3. Providing Opportunities for improvement:



Beyond indicating things that are not conforming to requirements (non-

Beyond indicating things that are not conforming to requirements (non-

conformities), it is important to also indicate high-risk areas, or areas that

conformities), it is important to also indicate high-risk areas, or areas that

may be in compliance but are at risk of eventually not complying, or that

may be in compliance but are at risk of eventually not complying, or that

could be improved.

could be improved.

Audit Report

Audit Report



Provides an objective reflection of the audit

Provides an objective reflection of the audit

exercise

exercise



Details the audit process and summary of

Details the audit process and summary of

identified deficiencies

identified deficiencies



Is written to make audit findings formal and

Is written to make audit findings formal and

request for corrective action by the audited CNS

request for corrective action by the audited CNS

provider

provider



An audit report should be clear, concise and

An audit report should be clear, concise and

contain facts presented and agreed upon

contain facts presented and agreed upon

during the exit meeting

during the exit meeting

Qualities of a Good Audit Report

Qualities of a Good Audit Report

An audit report should be objective and not

An audit report should be objective and not

contain:

contain:



Subjective opinions

Subjective opinions



Criticism

Criticism



Observations not discussed at the exit meeting

Observations not discussed at the exit meeting



Confidential information

Confidential information



Trivial issues

Trivial issues

Audit Report Writing

Audit Report Writing



Commences immediately after the exit meeting

Commences immediately after the exit meeting



Before you commence writing your report, think

Before you commence writing your report, think

about who will be reading the report and what is

about who will be reading the report and what is

their scope of knowledge of the language you

their scope of knowledge of the language you

will use.

will use.



An audit report is an official record of an audit, so

An audit report is an official record of an audit, so

it will likely be referred to in later years for review.

it will likely be referred to in later years for review.

Audit Report  - Contents

Audit Report  - Contents

The audit report should potentially include the following:

The audit report should potentially include the following:



Objectives

Objectives



What was audited, including the organization/area and

What was audited, including the organization/area and

scope

scope



Details of the auditee

Details of the auditee



Audit team details

Audit team details



Dates and locations of the audit

Dates and locations of the audit



Audit criteria used

Audit criteria used



Audit findings (which may be summarized in the body of

Audit findings (which may be summarized in the body of

the report if they are reported separately elsewhere)

the report if they are reported separately elsewhere)



Conclusions

Conclusions



Improvement recommendations

Improvement recommendations

Audit Report  - Contents

Audit Report  - Contents

Other items may include:

Other items may include:



Audit plan

Audit plan



People contacted within the auditee organization

People contacted within the auditee organization



Audit process

Audit process



Problems encountered that may have an impact on the

Problems encountered that may have an impact on the

reliability of the results

reliability of the results



Achievement of the audit objectives

Achievement of the audit objectives



Areas within the scope but not covered

Areas within the scope but not covered



Follow-up plans and arrangements

Follow-up plans and arrangements



A confidentiality statement

A confidentiality statement



Distribution list for the audit report

Distribution list for the audit report

Audit Report

Audit Report

Other items may include:

Other items may include:



The audit report should outline the follow-up actions

The audit report should outline the follow-up actions

required to resolve any issues.

required to resolve any issues.



The report should indicate the need for corrections or for

The report should indicate the need for corrections or for

corrective, preventive or improvement actions.

corrective, preventive or improvement actions.



These actions are usually decided and undertaken by the

These actions are usually decided and undertaken by the

auditee within an agreed timeframe.

auditee within an agreed timeframe.



The auditee should keep the person managing the audit

The auditee should keep the person managing the audit

programme and the audit team informed of the status of

programme and the audit team informed of the status of

the actions.

the actions.



The auditor should ensure that remedial action is taken.

The auditor should ensure that remedial action is taken.

Audit Report (Findings)

Audit Report (Findings)

For each finding, there should be:

For each finding, there should be:



A description of the non-compliance or

A description of the non-compliance or

observation

observation



Assigned risk rating of the non-

Assigned risk rating of the non-

compliance

compliance



Timeframe for submission of actions for

Timeframe for submission of actions for

each non-compliance identified

each non-compliance identified

Audit Report Format

Audit Report Format

Executive Summary

Executive Summary



This is an overview of the audit results.

This is an overview of the audit results.



It should present overall conclusions and

It should present overall conclusions and

recommendations related to the Purpose and Scope

recommendations related to the Purpose and Scope

Methodology.

Methodology.



This section must include:

This section must include:

a)

A brief description of what was audited,

A brief description of what was audited,

objectives, scopes, and time periods.

objectives, scopes, and time periods.

b)

Statements of significant action plans.

Statements of significant action plans.

c)

Overall statements of concerns and conclusions.

Overall statements of concerns and conclusions.

d)

Overall audit report rating.

Overall audit report rating.

Introduction/Background

Introduction/Background

The Introduction details the following items:

The Introduction details the following items:



What was inspected;

What was inspected;



Why (the objective);

Why (the objective);



Who was involved in the audit;

Who was involved in the audit;



Where (the scope);

Where (the scope);



When (Date of audit);

When (Date of audit);



Method of inspection (Methodology).

Method of inspection (Methodology).

Main Body



Contains details of the audited/inspected areas including observations and

Contains details of the audited/inspected areas including observations and

findings

findings



When writing the body of the report, you need to understand the 

When writing the body of the report, you need to understand the 

condition,

condition,

criteria, cause, and effect

criteria, cause, and effect

.

.



The findings of  the audit report are reliant on these terms, and understanding

The findings of  the audit report are reliant on these terms, and understanding

and addressing them in each finding is key to a good report.

and addressing them in each finding is key to a good report.

a)

Criteria

Criteria

 is an explanation of the standards/requirement used to evaluate the

 is an explanation of the standards/requirement used to evaluate the

service, program, function, or activity audited.

service, program, function, or activity audited.

b)

Condition

Condition

 is how effectively CNS provider is complying. Requirements can

 is how effectively CNS provider is complying. Requirements can

either be fully, complied with, partially complied with, or not complied with.

either be fully, complied with, partially complied with, or not complied with.

c)

Cause

Cause

 is a statement on the reason things have gone well or poorly.

 is a statement on the reason things have gone well or poorly.

Possibilities include inadequate procedures, procedures not being followed,

Possibilities include inadequate procedures, procedures not being followed,

poor supervision, or the CNS provider using unqualified personnel.

poor supervision, or the CNS provider using unqualified personnel.

d)

Effect 

Effect 

states the result of the conditions, in quantifiable terms. Is the effect

states the result of the conditions, in quantifiable terms. Is the effect

increased risk or exposure? Is it poor performance? This should be addressed

increased risk or exposure? Is it poor performance? This should be addressed

when you cover effect.

when you cover effect.

Audit Conclusions

Audit Conclusions



The audit report concludes against the audit

The audit report concludes against the audit

objective and that the conclusion should be

objective and that the conclusion should be

clearly indicated in the audit report.

clearly indicated in the audit report.



Contains results, evaluations and what

Contains results, evaluations and what

action should be taken on the findings

action should be taken on the findings

identified during the audit/inspection.

identified during the audit/inspection.



These conclusions should be independent

These conclusions should be independent

and factual, and not based on assumptions.

and factual, and not based on assumptions.

A set of such conclusions leads to forming an

A set of such conclusions leads to forming an

opinion.

opinion.

Recommendations (As applicable)

Recommendations (As applicable)

Make effective recommendations.

Make effective recommendations.



As an auditor/inspector, your final task is making recommendations for

As an auditor/inspector, your final task is making recommendations for

improvement for the audited CNS provider.

improvement for the audited CNS provider.



Remember to do the following while writing your recommendations:

Remember to do the following while writing your recommendations:

a)

Be positive. 

Be positive. 

Focus on what is going right at the moment, and how

Focus on what is going right at the moment, and how

the good aspects of the entity can be applied in ineffective

the good aspects of the entity can be applied in ineffective

areas.

areas.

b)

Be specific. 

Be specific. 

Be very clear as to what specific aspects do not

Be very clear as to what specific aspects do not

adhere to requirements, and to what concrete steps could be

adhere to requirements, and to what concrete steps could be

potentially implemented to ensure compliance.

potentially implemented to ensure compliance.

c)

Identify who should act. 

Identify who should act. 

Does the service provider need better

Does the service provider need better

employee performance or should management be picking up

employee performance or should management be picking up

the pace? Make clear who needs to make changes.

the pace? Make clear who needs to make changes.

d)

Keep recommendations brief. 

Keep recommendations brief. 

Be succinct - only include details

Be succinct - only include details

that are necessary to your point.

that are necessary to your point.

Audit Report Appendices/Attachments

Audit Report Appendices/Attachments



Supporting materials. e.g. checklist, Corrective

Supporting materials. e.g. checklist, Corrective

Action Request (CAR) form etc.

Action Request (CAR) form etc.

Audit Report Transmission

Audit Report Transmission

Audit reports should follow a proper format. When polishing up the audit

Audit reports should follow a proper format. When polishing up the audit

report, make sure to follow proper format before transmitting it.

report, make sure to follow proper format before transmitting it.

a)

Include a 

Include a 

cover page

cover page

. The cover page should be three or four lines,

. The cover page should be three or four lines,

and outline the subject of the audit report and the type of audit.

and outline the subject of the audit report and the type of audit.

b)

A

A

 letter 

 letter 

should follow the cover page. The memo should be one or

should follow the cover page. The memo should be one or

two short paragraphs overviewing who and what was audited, who

two short paragraphs overviewing who and what was audited, who

has received or is receiving the report, and plans for future distribution.

has received or is receiving the report, and plans for future distribution.

c)

A 

A 

table of contents 

table of contents 

follows the memo, and it contains a catalogue of

follows the memo, and it contains a catalogue of

chapters, page numbers, sections, and suggestions of the audit.

chapters, page numbers, sections, and suggestions of the audit.

d)

The report should be written in plainly-worded, non-technical

The report should be written in plainly-worded, non-technical

language and use proper grammar and paragraph organization.

language and use proper grammar and paragraph organization.

e)

Audit Reports are organized by chapters, each with a title, and by

Audit Reports are organized by chapters, each with a title, and by

sections and subsections, each marked with a heading. Headings

sections and subsections, each marked with a heading. Headings

should go from general to more specific.

should go from general to more specific.

Audit/inspection report submission

Audit/inspection report submission



Once the team leader has assembled the global report,

Once the team leader has assembled the global report,

it will be forwarded to the head of inspectorate for

it will be forwarded to the head of inspectorate for

approval.

approval.



Timelines specified by the CAA will be followed in

Timelines specified by the CAA will be followed in

submission of the final report

submission of the final report

Handouts 4.1/4.1a

Handouts 4.1/4.1a

Exercise 4.1: Report Writing

Exercise 4.1: Report Writing

                            END

                            END