What are the best practices for documenting and reporting audit findings?

1 Define the audit scope and objectives

Before you start documenting and reporting your audit findings, you need to have a clear and consistent definition of the audit scope and objectives. The audit scope defines what areas, functions, or processes are covered by the audit, while the audit objectives define what the audit aims to achieve, measure, or evaluate. The audit scope and objectives should be aligned with the HR strategy, policies, and standards, as well as the relevant laws and regulations. They should also be communicated to the auditees and stakeholders before the audit begins.

2 Collect and organize the audit evidence

The audit evidence is the data, information, or records that support or contradict the audit findings. You need to collect and organize the audit evidence in a systematic and reliable way. You should use various sources and methods of audit evidence, such as interviews, observations, surveys, documents, reports, or analytics. You should also verify and validate the audit evidence to ensure its accuracy, completeness, and relevance. You should organize the audit evidence in a logical and traceable way, using tools such as audit checklists, worksheets, or software.

3 Analyze and evaluate the audit evidence

The next step is to analyze and evaluate the audit evidence to identify the audit findings. The audit findings are the results, outcomes, or conclusions of the audit, based on the audit evidence and criteria. The audit criteria are the benchmarks, standards, or expectations that the audit compares the audit evidence against. You should use appropriate techniques and tools to analyze and evaluate the audit evidence, such as gap analysis, root cause analysis, risk assessment, or SWOT analysis. You should also classify the audit findings according to their impact, severity, or priority.

4 Document the audit findings and recommendations

Once you have identified the audit findings, you need to document them in a clear, concise, and consistent way. You should use a standard format and template for documenting the audit findings, such as an audit report, an audit memo, or an audit summary. You should include the following elements in your documentation: the audit scope and objectives, the audit methodology and criteria, the audit evidence and sources, the audit findings and classifications, and the audit recommendations and action plans. The audit recommendations and action plans are the suggestions, solutions, or corrective actions that address the audit findings and improve the HR operations.

5 Report the audit findings and recommendations

The final step is to report the audit findings and recommendations to the auditees and stakeholders. You should use a suitable format and medium for reporting the audit findings and recommendations, such as a presentation, a meeting, a webinar, or an email. You should tailor your report to the needs, expectations, and interests of your audience. You should also follow these tips for reporting the audit findings and recommendations: be objective, factual, and respectful; highlight the strengths and opportunities, as well as the weaknesses and threats; provide evidence and examples to support your findings and recommendations; and invite feedback and questions.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?