What must be included in the audit report?

The inclusion of audit findings and an approved action plan to address deficiencies in the audit report is critical for several reasons. Firstly, audit findings provide a clear and objective assessment of the compliance and overall effectiveness of the processes being reviewed. These findings serve as evidence that highlights areas where an organization may not meet regulatory requirements or internal policies.

Additionally, an approved action plan is essential because it outlines the steps the organization intends to take to resolve the identified issues. This demonstrates accountability and commitment to improvement. By providing a structured approach to addressing deficiencies, the audit report not only helps in mitigating risks but also improves the organization's operational integrity over time.

Furthermore, this combination of findings and an action plan forms a basis for follow-up audits and ongoing compliance management, ensuring that the organization is continually working towards rectifying any shortcomings and enhancing its overall control environment. Thus, including these elements in the audit report aligns with best practices in auditing, emphasizing transparency and a proactive approach to risk management.