The objective of this work is to establish the elements to take into account when writing a Special Audit Report, in which a comparison is made between these and normal audit reports, highlighting the importance of preparing them clearly and precisely., without leaving room for doubt in the face of alleged criminal acts that are detected during the audits, promoting clean and fair judicial processes.
Introduction
A report is the exposition of the results, events, qualities, progress and interpretations of data or facts.
In auditing, a report is the official document that presents the facts to inform an interested reader.
The reports are intended to:
- Present exactly and adequately the results of an investigation to the interested parties and update the administrations on the development of the work carried out Present in a concise, clear and exact way the results of an investigation that leads to recommend the determined action Collect results of the investigations and experiments for future reference and their ways, to avoid unnecessary duplication of the work. Provide the history of any development of the work.
In our country we have as background for the preparation of audit reports, Decree Law No. 159, dated June 8, 1995, which establishes in Chapter V: of audits, second section: Of the Result of the Audits, Article 13.- The final result of the audit will be formalized by means of a report whose content will be the responsibility of the head of the audit, who will analyze it with the highest leader of the audited unit, in accordance with the provisions for that purpose.
Likewise, in Chapter VI of the auditors, first section Of the Functions and Attributions of the Auditors, article 17.- When in the performance of their functions, the auditors detect actions or omissions that are presumably criminal, the head of the audit will be obliged to present a special report before the competent authorities, which will be accompanied, if it is a state or internal audit in a state entity, with the original evidential documents filled out.
Aspect this object of analysis in the present work
The standards referring to the form, timing, content, presentation and distribution of audit reports are mandatory for their preparation and even more so for special reports, as documents that formalize the results reached by the auditors in the verifications. practiced and work carried out to clarify the evidence found.
The reports also serve to communicate the results to the highest level of management of the audited entity and other administrative bodies, as well as to the corresponding authorities when appropriate.
The audit report must:
- Be timely Complete, accurate, objective and convincing, as well as clear, concise and easy to understand. As a rule, everything you enter must be reflected in the working papers and respond to relevant findings with sufficient and competent evidence. Show an independent attitude Show qualification according to the evaluation of the audit results Distributed quickly and appropriately.
The preparation of the final audit report is one of the most important and complex phases of the audit, so it requires extreme care in its preparation.
The capacity and ability of the auditor in writing the report are essential for it to achieve its objectives and fulfill the purposes of offering the elements that allow the reader to know in an easy and reliable way, the results of the work carried out.
The writing style is very specific to each person, so it is difficult to establish rigid parameters or rules about this, however it must:
- Avoid excessive repetition of words Do not use acronyms or abbreviations that have been previously declared, unless they are well known, such as: MP (thousands of pesos), UM (unit of measurement), etc. Do not use offensive or vulgar terms Use common and common words Generalized Write in a single person Use punctuation marks appropriately Set the date as follows: day, month and year Include an index in the cases of reports that require it due to their length, identifying the essential sections and parts of the document.
Writing accurate, convincing and understandable reports is paramount, it is not enough to do a good job, others need to know.
A good report evidences the quality of the work done, it is totally true and many times unfair, that the quality of the work is judged mainly by the report presented, unfortunately we know of the success that vain works have had, very well received by readers for its way writing and presentation
We must bear in mind that sometimes the report is the only available basis for decision-making.
The need to occupy the least time available to executives and their desire to get to the important points quickly, require a uniform format of the audit reports and be decided by sections.
Each section must be made up of certain homogeneous information, with the same identification and display purpose.
Among the current trends is attractive reporting, use of colors, different types and sizes of letters, illustrations and other computer techniques.
A report should not have many important points, when this is the case, sometimes the reader cannot determine when one point is more important than another.
Development
To present the results of an audit, the audit manuals establish the ways to present them.
The auditor has the freedom to bring to the report everything verified in the development of the audit, or only those aspects that he wishes to point out, whether positive or negative.
When the auditor detects irregularities or frauds related to allegedly criminal acts in the performance of his duties, he is obliged to present a special report to the competent authorities, attaching the original probative document, previously filled in and supported by the corresponding legal opinion, according with current legislation.
Below we present the aspects to be reflected in a Normal Audit Report and in a Special Audit Report, so that the reader can assess the differences between both and the importance of the latter:
Report of the audit results
A Normal Audit Report begins with a heading of:
- Work order No.: Number of the order that gave rise to the audit Audited entity: Code and address of the audited entity Subordinate to: Name of the body, body to which it is subordinate or sponsored Type of audit: The one executed according to the order of work Start date: Date on which the audit began to be carried out Completion date: Date on which the execution of the audit ended Audit executed by: Organizational unit that carried out the audit Auditor: Names and surnames of the group chief auditor
After the indicated data, the Report is titled with the legend: audit report
Introduction
This section presents a brief characterization of the audited entity, developing the following aspects:
- Objective: those proposed according to the type of audit to be executed Programs: those applied, as well as the causes for which the planned ones were not applied Legislation: Laws, decree Laws, Resolutions and other verified regulations and causes that prevented checking the planned Period audited: dates frame the audited period, scope of the tests performed and the procedure used to collect the sample Standards: Auditor's report stating that the generally accepted auditing standards were applied, if not, the causes that prevented their application and, as far as is known, its effect on the results of the audit. Others: limitations that may have had an impact on the development of the audit, related to non-existence, filing, ordering and clarity of documents, etc.
Conclusions
The conclusions should summarize the situation presented by the entity in terms of the control it exercises over the resources it manages, the reliability of the economic and financial operations reviewed and other aspects of interest that have been detected in the course of the work.
Said conclusions should not constitute a repetition of what is stated in the Results section of the report itself, but rather a synthesis of the fundamental facts and situations verified, taking care not to include a fact or finding that has not been reflected in another section of the report.
Also within this section, the fundamental causes that originated the situation, as well as the direct and indirect consequences that could arise from the findings, must be reflected in a general way.
When it is considered necessary to have to highlight a specific fact in view of its connotation and importance, it will be presented in the most summarized way possible, regardless of how it is reflected in another section of the report.
Likewise, the qualification granted by the head of the group is reflected in accordance with the evaluation made of the audit results.
Results
Based on the concrete evidence gathered by the auditor to meet the audit objectives, the group leader determines the facts that, according to their importance, should be included in the report.
Comments must be precise and organized, always reflecting what legislation or regulations are violated.
The indications are ordered according to the objectives of the audit, taking care to group them by subject and within these, in order of importance.
Indications related to facts that are not duly verified and included in the working papers are not included.
The tables and additional elements that facilitate the understanding of the signaling, should be included in the report as annexes, but making reference to them, in each case.
Whenever possible, the deficiencies that should be highlighted due to their magnitude and importance are quantified, as well as the percentage that represents the sample of the universe of items or articles that make up the topic should be reflected in each case.
When appropriate, the results of each issue are compared with those obtained in the last audit performed, recognizing the important achievements or setbacks.
The result of the audit conclusions meeting with the directors and officials of the entity at the different levels at which they have been carried out must be recorded.
It should also be mentioned that the findings were communicated and analyzed that, due to lack of significance or resolved in the course of the audit, are not considered in the report.
recommendations
The recommendations should be consigned in a general way and even, only those that are compliant, exposing themselves in a constructive way, also expressing the possible measures to be taken to solve the deficiencies contained in the report.
Annexes
• General
The annexes that are part of the report are listed, regardless of whether they are referred to in another section of the report.
The annexes must be the essential ones, to present the information in a detailed and concrete way, through the orderly grouping of this, when due to its volume it is not advisable to include it in the body of the report.
Likewise, verifications or statements on certain facts are considered as annexes when it is necessary to attach them in their interest.
It is headed with the word annexes and the title that identifies its content, numbered consecutively according to the order in which they are mentioned in the report.
• Specific
As an annex, the document referring to the declaration of administrative responsibility must be included, which is prepared by the group leader when non-compliance with current legislation or regulations or other actions that affect the good performance of the audited entity are detected, responsibility should never be set on the facts that are not recorded in the report.
The data to be indicated in this document are: names, surnames and position of the leader, official or worker, to whom the administrative responsibility for the fact is imputed, as well as a brief description of this.
Last section of the report (General).
The term that is established so that the auditee can present their discrepancies with the content of the report must be reflected, specifying that the established time is computed from the date the audit report is personally received, by the leaders or officials authorized to do so or by the correspondence clearinghouse of the audited entity
Special report on the results of the audit
When the auditors detect presumably criminal actions or omissions in the performance of their duties, such evidence is presented to the competent authorities through special audit reports.
Special reports have to be reviewed by a lawyer linked to the audit unit.
It is important to present the data and precise elements so that the scope of the evidence obtained, through the control actions carried out, makes it possible to standardize them "proof" of opening the criminal process.
These reports will be formatted
1. Header
- General data of the audited entity Date of commencement of the control action Date of the report Type and scope of the control action
2. Content
- Date on which the alleged criminal act was detected Description of the allegedly criminal act or conduct, legal provisions, rules and procedures that are transgressed or breached Total quantification of the economic impact, exposing the damages caused whenever possible Documentary evidence that allowed determining the facts Names and surnames of the people involved in the allegedly criminal act or conduct and their causal relationship with the event or conduct and the expression of the economic impact or damages attributable to each of them.
3. Name and signature of the group leader.
4. Detailed delivery record of the original documents that are attached, as well as the documentary evidence that made it possible to determine the fact.
5. Annexes.
Difference between normal audit report and special report
The difference between the Special Report and the Normal Audit Report lies in focusing the analysis only on the alleged criminal act, responding to:
- How did the event occur? Where did it happen? How it happened? Who did it? Why and for what did they do it?
The special reports must make the date of arrest of the event very clear, specifying the period in which it is presumed to have occurred and the exact place where it occurred (entity, establishment, workshop, area, etc.).
It should be noted that when more than one unrelated event is detected, separate reports are prepared for each event.
An important element is the detail of how it happened, that is, explaining what happened, what the alleged criminal act consisted of, what were the methods used, who acted in this way, names and surnames of those involved, their positions and functions and what it consisted of. the performance of each of them.
It is not a questionnaire to be developed with questions and answers, but a detailed analysis, with documentary evidence to support each formulated approach.
It should be included in the report when other factors that led to the occurrence of the events described, such as lack of supervision, control, separation of functions, counterparts, etc., are appropriate.
With the delivery of these special reports, the auditor's work does not end, since he must collaborate with the investigating bodies during the proceedings of the file in the preparatory phase, as well as with the Prosecutor's Office during the preparation of the oral trial.
For a report to be effective
- It must contain information that is meticulously reliable, that is to say, verifiable, that can be proven, demonstrated Always keep the reader in mind when writing, it must be able to anticipate questions that may arise, strive to provide the required answers without leaving room for doubt. must break down the facts from the particular to the general Ideas must be connected to each other and be concluded
In summary, you must be careful in the details:
- Check sources of information Check notes Cite cases correctly Use indexes efficiently Handle numbers easily and accurately
When writing reports, the premise must always be that "a well-posed problem is a half-solved problem"
That is why the auditor when writing a report must be precise and objective, without resorting to many of the usual writing techniques
Sentences in reports should be reasonably short, and clear, avoiding monotony
The paragraphs should be short and suggestive, to take the reader from one to another, without losing the thread
In the reports it should not be mentioned that a crime occurred, the alleged criminal act is described, it is up to the Courts to decide on it.
The auditor does not denounce, because if he does, he is invalidated from acting as an expert in the instructive phase and in the act of oral proceedings.
Bibliography
Decree Law No. 159, dated June 8, 1995
Resolution 101 of 2003 of the Ministry of Audit and Control
Resolution 320 of 2003 of the Ministry of Audit and Control
Resolution 100 of 2004 of the Ministry of Audit and Control
Resolution 105 of 2004 of the Ministry of Audit and Control
Resolution 235 of 205 of the Ministry of Finance and Prices.
