This sample audit report outlines findings from an internal audit site review of an energy company.
The objectives of the review were to determine the company’s compliance with certain corporate and local policies and procedures; evaluate the overall efficiency and effectiveness of internal controls and procedures for each of the processes reviewed; and identify opportunities for improvement in operational efficiencies related to these processes and to management reporting. The processes reviewed were: sales order entry, credit control, credit memo entry, invoicing, return merchandise authorization (RMA) processing, inventory control, travel and entertainment, payroll, and purchasing and accounts payable. The review consisted of process interviews, comparison to “best practices,” analysis of data, and detail testing and/or documentation review. Opportunities for control and efficiency improvements are highlighted in the report as key management issues, and details can be found in the action matrix section of each process.