Posted By: PrimeTime
Audit Response - 07/08/15 11:40 PM
I'm curious to see what the best approach for the following situation would be, as I may be a bit biased.
We recently had out internal audit, which we're now looking to provide our response to Senior Management and the Board prior to the DOB Examination. Within the audit, there were several issues that were verbal in regards to the processes that have changed since the retirement of two senior members of the department. There were also some issues that require a response that were isolated to the same individuals that have since retired.
My question would be what's the best way to go about the response? Obviously the external examiners are going to review all audit workpapers, and the department wants to show that the inefficiences identified were the result of said individuals, but professionalism would say to provide a response that says something to the effect of "effective (date after retirement), management transferred the process to (insert new individual's name), and reviewed the notations to increase efficiency going forward." To me, that would say that both parties were at fault, when truly that's not the case, and although anyone who puts 2+2 together would see that the dates of the incidents noted in the audit were prior to the transfer of the duty, but I feel as though that's assuming that whoever's reviewing it will make that connection. Certainly the goal wouldn't be to throw anyone under the bus, even though they're no longer employed by us, but it is what it is, right?
Further, the retirements removed a large number of years and experience in the field, so by showing the ability of those who remain to correctly perform a duty that was previously mishandled, we're essentially showing our efficiency despite lack of time spent in the field (it's my first audit, in my first year in the field, yikes!).
Curious to see what others have done in similar situations!
We recently had out internal audit, which we're now looking to provide our response to Senior Management and the Board prior to the DOB Examination. Within the audit, there were several issues that were verbal in regards to the processes that have changed since the retirement of two senior members of the department. There were also some issues that require a response that were isolated to the same individuals that have since retired.
My question would be what's the best way to go about the response? Obviously the external examiners are going to review all audit workpapers, and the department wants to show that the inefficiences identified were the result of said individuals, but professionalism would say to provide a response that says something to the effect of "effective (date after retirement), management transferred the process to (insert new individual's name), and reviewed the notations to increase efficiency going forward." To me, that would say that both parties were at fault, when truly that's not the case, and although anyone who puts 2+2 together would see that the dates of the incidents noted in the audit were prior to the transfer of the duty, but I feel as though that's assuming that whoever's reviewing it will make that connection. Certainly the goal wouldn't be to throw anyone under the bus, even though they're no longer employed by us, but it is what it is, right?
Further, the retirements removed a large number of years and experience in the field, so by showing the ability of those who remain to correctly perform a duty that was previously mishandled, we're essentially showing our efficiency despite lack of time spent in the field (it's my first audit, in my first year in the field, yikes!).
Curious to see what others have done in similar situations!