Internal Audit Reports: Key Audience and Communication

A.

Internal audit reports are an important communication tool used to convey the results of an internal audit to stakeholders. The primary audience for internal audit reports is a critical consideration as it can have an impact on the effectiveness of the audit process.

The correct answer to the question is C. Auditees, as they will eventually have to implement the recommendations.

Internal audit reports should be primarily written for and communicated to the auditees, as they are responsible for implementing the recommendations that emerge from the audit. Auditees can include any person or department within the organization that is audited, as well as other stakeholders who may be impacted by the audit findings. The primary purpose of an internal audit is to evaluate the effectiveness of an organization's internal controls and processes, identify areas for improvement, and recommend corrective actions. Therefore, the primary audience for the internal audit report should be those who can use the recommendations to improve their operations.

Although other stakeholders, such as senior management or external auditors, may also be interested in the findings of the internal audit, they are not the primary audience. Senior management may need to be informed about identified risks, but they are not responsible for implementing the recommendations. External auditors, on the other hand, have a different focus and will typically conduct their own independent audit of the organization's financial statements. Therefore, internal audit reports are not primarily written for and communicated to external auditors.

In summary, the primary audience for internal audit reports should be the auditees, as they are responsible for implementing the recommendations that emerge from the audit. While other stakeholders may also be interested in the findings, they are not the primary audience.