before the interview planning: -gather background info
-what will be covered? what questions should be asked?
-schedule in advance with a specific time, place and duration
-prepare an agenda

interviewing used to gather evidence and provide insight of where to test further (if interview is conducted effectively). info gathered should be substantiated.

during the interview: opening: -make the interviewee feel comfortable (ice-breaking techniques)
-establish rapport
-be clear (state purpose)
-obtain buy-in conducting: -use open-ended questions but stay on focus
-listen
-take notes/”mirror” closing: -summarize
-schedule a follow-up

4 consideration that may aid in arriving at a mutual outcome:
1. Management of people issues
2. Identification of interests
3. Development of alternative options
4. Establishment of objective criteria – focus on audit objectives

MCQ Dec 2012 Q1 b and c
June 2011 – Q2 written response question on interviewing

objectives of internal audit reporting
-reports need to convey value in order to be effective audit reports should accomplish the following:
1. document the results of audit work
2. provide a framework for mgmt. action
3. present auditee’s views
4. provide basis for follow-up
5. express an opinion on adequacy of governance, mgmt. and control within org

IA reporting standards
1. a signed, written report issued when audit examination is complete
2. IA should discuss conclusions and recommendations with mgmt. before issuing report
3. reports should be accurate, objective, clear, concise, constructive, complete and timely
4. reports should present purpose, scope, and results of the audit and where appropriate, an expression of the auditor’s opinion
5. if an overall opinion is expressed, it must include: the scope and time period, consideration of related audit projects, the risk and control framework used as a basis for the opinion; and the reasons for an unfavourable opinion
6. reports may include recommendations and acknowledge satisfactory performance and corrective action
7. the auditee’s views about conclusions and recommendations may be included in the report
8. the CAE or a nominee should review the final audit report before it is issued (including distribution listing)

Contents of IA Report
1. background information – general info on activity reviewed by auditor
2. purpose and scope of examination – why was the audit performed? what ws included/excluded in the review?
3. summary of major observations – draw mgmt’s attention to significant items
4. detailed observations and recommendations – five-attributes approach (reading 6-8)
5. mgmt. comments – mgmt’s formal response to observations – basis for follow-up
6. conclusions – summarizes auditor’s judgment on activities reviewed
7. acknowledgement – acknowledgement of participation and cooperation from mgmt. and their staff

Guidelines for detailed observations: