Auditee Action Plan

In the ideal world, the auditee tells the reader of the audit report what their action plan is about the audit findings.

But by the end of the audit, the auditee may not be in a cooperative mood…

No, you can’t skip their response completely…

It is required by standards

YB 9.50 Auditors should obtain and report the views of responsible officials of the audited entity concerning the findings, conclusions, and recommendations in the audit report, as well as any planned corrective actions.

What’s in the action plan response?

The corrective action plan must provide the name(s) of the contact person(s) responsible for corrective action, the corrective action planned, and the anticipated completion date. CFR Part 200.511 c

Set clear expectations early to avoid conflict later

Set expectations regarding length, contents, and timing of the auditee’s response early in the audit and in writing, if possible. If you start arguing about the findings at the end of the audit (hey… that never happens, right?), at least you have a leg to stand on when you ask them to respond by your deadline.

Give the reader assurance something will be done

If you have an executive summary, let the executive know whether the auditee plans on playing along with your recommendations. If they disagree or refuse to respond, disclose that, too.

Where does it go?

You can include their response on their letterhead in the back of your report, or weave their response into your report right after each finding.

The GAO even allows you to summarize their oral response and doesn’t say where to put responses in your report.

There is no right way or wrong way to do it.

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Auditee Action Plan