Mind of Jacka: The Audit Report's True Purpose - Memorialization, Not Prompting Action
Mike Jacka argues that an internal audit report's primary function is to memorialize agreements and remind stakeholders of agreed-upon actions, not to prompt action. He contends that if a report is still being used to initiate action, it signifies a failure in the audit process, indicating a lack of rapport, urgency, or focus on solutions over milestones. Jacka emphasizes that auditors themselves, through their interactions and guidance, should drive action long before the report is issued.
The Misconception of the Audit Report's Role
Mike Jacka, a seasoned internal audit professional, challenges a common misconception: that the final audit report should serve to prompt readers to take action. He vehemently disagrees with this notion, asserting that if an audit department relies on the report to initiate corrective measures, it has already failed in its responsibility to improve operations. This perspective highlights a critical distinction between documenting outcomes and driving change, suggesting that the latter should occur much earlier in the audit lifecycle.
Beyond the Report: Driving Action Through Engagement
Jacka argues that the report's true purpose is to memorialize what has already transpired and to serve as a record of agreement. This includes documenting what needs to be done, the agreement to do it, and ideally, the commencement of these actions. He criticizes the practice of issuing reports without agreed-upon corrective actions, attributing it to a lack of rapport with the client, insufficient urgency from the client's side, or an audit department prioritizing milestones over actual solutions. Such practices, he contends, indicate deeper departmental and cultural issues.
The Auditor's Proactive Role in Fostering Solutions
The core message is that the auditor, not the report, is the true catalyst for action. Auditors should proactively engage with clients throughout the audit process, explaining findings, demonstrating the need for change, and providing the impetus for corrective measures. Jacka stresses that effective solutions are born from the auditor's actions, decisions, and words, leading to agreed-upon steps well before the final report is issued. The report merely formalizes these prior agreements, reminding all parties of their commitments rather than prompting new ones.
- The report should memorialize agreements, not initiate action.
- Reliance on the report to prompt action indicates a failure in the audit process.
- Effective action is driven by auditor engagement and rapport throughout the audit.
- Agreed-upon corrective actions should be established before the report's issuance.
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