Report Quality Elements
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GAO-03-673G Government Auditing Standards > Chapter 8 Reporting Standards for Performance Audits > Report Quality Elements
8.38 The reporting standard related to report quality for performance audits performed in accordance with GAGAS is:
The report should be timely, complete, accurate, objective, convincing, clear, and as concise as the subject permits.
Timely
8.39 To be of maximum use, the audit report needs to provide relevant information in time to respond to officials of the audited entity, legislative officials, and other users’ legitimate needs. Likewise, the information provided in the report needs to be current. Therefore, auditors should plan for the appropriate issuance of the report and conduct the audit with these goals in mind.
8.40 During the audit, the auditors should consider interim reporting of significant matters to appropriate entity officials. Such communication, which may be oral or written, is not a substitute for a final report, but it does alert officials to matters needing immediate attention and permits them to take corrective action before the final report is completed.
Complete
8.41 Being complete requires that the report contain all evidence needed to satisfy the audit objectives and promote an adequate and correct understanding of the matters reported. It also means the report states information and findings completely, including all necessary facts and explanations. Giving report users an adequate and correct understanding means providing perspective on the extent and significance of reported findings, such as the frequency of occurrence relative to the number of cases or transactions tested and the relationship of the findings to the entity’s operations.
8.42 In most cases, a single example of a deficiency is not sufficient to support a broad conclusion or a related recommendation. All that it supports is that a deviation, an error, or a weakness existed. Sufficient detailed supporting data should be included to make convincing presentations.
Accurate
8.43 Accuracy requires that the evidence presented be true and that findings be correctly portrayed. The need for accuracy is based on the need to assure report users that what is reported is credible and reliable. One inaccuracy in a report can cast doubt on the reliability of an entire report and can divert attention from the substance of the report. Also, use of inaccurate evidence can damage the credibility of the issuing audit organization and reduce the effectiveness of its reports.
8.44 The report should include only information, findings, and conclusions that are supported by sufficient, competent, and relevant evidence in the audit documentation. If data are significant to the audit findings and conclusions, but are not audited, the auditors should clearly indicate in their report the data’s limitations and not make unwarranted conclusions or recommendations based on those data.
8.45 Evidence included in audit reports should demonstrate the correctness and reasonableness of the matters reported. Correct portrayal means describing accurately the audit scope and methodology and presenting findings and conclusions in a manner consistent with the scope of audit work. The report also should not have errors in logic and reasoning. One way to help ensure that the audit report meets these reporting standards is to use a quality control process such as referencing. Referencing is a process in which an experienced auditor who is independent of the audit verifies that statements of facts, figures, and dates are correctly reported, that the findings are adequately supported by the audit documentation, and that the conclusions and recommendations flow logically from the support.
Objective
8.46 Objectivity requires that the presentation of the entire report be balanced in content and tone. A report’s credibility is significantly enhanced when it presents evidence in an unbiased manner so that report users can be persuaded by the facts. The report should be fair and not misleading and should place the audit results in perspective. This means presenting the audit results impartially and fairly. In describing shortcomings in performance, auditors should put findings in context. For example, the audited entity may have faced unusual difficulties or circumstances.
8.47 The tone of reports should encourage decision makers to act on the auditors’ findings and recommendations. This tone should be balanced by requiring reports to present sound and logical evidence to support conclusions while refraining from using adjectives or adverbs that characterize evidence in a way that implies criticism or unsupported conclusions.
8.48 The report should recognize the positive aspects of the program reviewed if applicable to the audit objectives. Inclusion of positive program aspects may lead to improved performance by other government organizations that read the report. Such information allows for a fairer presentation of the situation by providing appropriate balance to the report. In addition, inclusion of such accomplishments may lead to improved performance by other government organizations that read the report.
Convincing
8.49 Being convincing requires that the audit results be responsive to the audit objectives, that the findings be presented persuasively, and that the conclusions and recommendations follow logically from the facts presented. The information presented should be sufficient to convince the report users to recognize the validity of the findings, the reasonableness of the conclusions, and the benefit of implementing the recommendations. Reports designed in this way can help focus the attention of responsible officials on the matters that warrant attention and can provide an incentive for taking corrective action.
Clear
8.50 Clarity requires that the report be easy to read and understand. Reports should be prepared in language as clear and simple as the subject permits. Use of straightforward, nontechnical language is essential to simplicity of presentation. Whenever technical terms, abbreviations, and acronyms are used, they should be clearly defined.
8.51 Auditors may consider using a summary within the report to capture the report user’s attention and highlight the overall message. If a summary is used, it generally should focus on the specific answers to the questions in the audit objectives, summarize the audit’s most significant findings and the report’s principal conclusions, and prepare users to anticipate the major recommendations.
8.52 Logical organization of material, and accuracy and precision in stating facts and in drawing conclusions, are essential to clarity and understanding. Effective use of titles and captions and topic sentences makes the report easier to read and understand. Visual aids (such as pictures, charts, graphs, and maps) should be used when appropriate to clarify and summarize complex material.
Concise
8.53 Being concise requires that the report be no longer than necessary to convey and support the message. Extraneous detail detracts from a report, may even conceal the real message, and may confuse or distract the users. Also, needless repetition should be avoided. Although room exists for considerable judgment in determining the content of reports, those that are fact-based but concise are likely to achieve greater results.
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