(a) Footwear Ltd., a manufacturing company has recently appointed you as its Internal Auditor to review its financial and operational controls. You…

As per Standard on Internal Audit (SIA) 370 Reporting Results, reporting of internal audit results is generally undertaken in two stages: At the end of a particular audit assignment, an “Internal Audit Report" covering a specific area, function, or part of the entity is prepared by the Internal Auditor, highlighting key observations arising from those assignments. This report is generally issued with details of the manner in which the assignment was conducted and the key findings from the audit procedures undertaken. This report is issued to the auditee, with copies shared with local and executive management, as agreed during the planning phase.On a periodic basis, at the close of a plan period, a comprehensive report of all the internal audit activities covering the entity and the plan period is prepared by the Chief Internal Auditor (or the Engagement Partner, in case of an external service provider). Such reporting is normally done on a quarterly basis and submitted to the highest governing authority responsible for internal audits, generally the Audit Committee. Some part of the aforementioned Internal Audit Reports may form part of the periodic (e.g., Quarterly) report shared with the Audit Committee. On the basis of the internal audit work completed, the Internal Auditor shall issue a clear, well-documented Internal Audit Report which includes the following key elements: (i) An overview of the objectives, scope, and approach of the audit assignments; (ii) The fact that an internal audit has been conducted in accordance with the Standards of Internal Audit; (iii) An executive summary of key observations covering all important aspects, and specific to the scope of the assignment; (iv) A summary of the corrective actions required (or agreed by management) for each observation; and (v) Nature of assurance, if any, which can be derived from the observations.