IIA-Australia Factsheet - Audit Action Close-Out

Factsheet - Audit Action Close-Out

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Author

IIA-Australia

Date

 2022

Topics Explored

Internal Audit

Format

Factsheet

Extract/Description

Internal Audit Standard 2500 ‘Monitoring Progress’ requires: “The chief audit executive must establish and maintain a system to monitor the disposition of results communicated to management.”  Internal audit should establish a system to monitor progress by management to implement agreed audit actions in response to audit recommendations

Key Points

  1. An audit action is monitored until it has been formally closed.
  2. If audit actions are not addressed in a timely way, the effort and cost involved with the audit are wasted.
  3. All remedial and improvement actions should be tracked, with progress reported to senior management and the audit committee.
  4. When an outstanding audit action is closed, then the risks as they exist at that point are being accepted. 

Relevant Industries

All

Level of Assumed Knowledge

Intermediate