Audit memorandums report the findings of an audit to the client. Auditors may also send a memo at the end of an internal audit to inform managers, owners or board members of the audit team's recommendations. The scope of an audit varies based on the company's needs. For example, an internal audit may focus on the efficiency of a company's procedures rather than evaluating its financial information.
Header and Introductory Paragraphs
List the date at the top of your audit memo. Drop down several lines and list the client's name, address and identification number, if applicable. Specify the period covered by the audit in the introductory paragraph. If the memo relates to a quarterly audit, include the fiscal year to which it belongs. State the initial objective of the audit, such as verification of financial statements, internal use or tax analysis.
Body of Memo
Use the body of the memo to discuss the results of the audit. List the areas included in the audit and the method used to evaluate each. For financial audits, be as specific as possible with the dollar amounts and dates of any questionable transactions.
In the final paragraph, offer a brief summary of your opinion of the company's processes. List the areas that worked well and offer recommendations to address any problem areas. Provide your contact information in case the recipient has any questions about your findings or would like to schedule a follow-up audit after correcting the issues.
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