Problem:
Throughout the audit process, the internal auditors gather facts. They are supported by written or verbal evidence. The supporting documents are called evidence, work papers, or documentations, etc.
In the real world, there is no rule regarding the amount of evidence that the auditor should or must collect. Unlike the external auditor there is no pre-set template the internal auditor is required to follow. Pictures and graphs tables - etc are allowed in internal audit reporting but not in external audit report. Verbal reporting is also allowed. All these are subject to the individual company politics and the VP internal audit philosophy.
Given the above stated statements, a number of auditors argued that the external auditor (the CPA) has to 'over document' their audit process in anticipation of unexpected law suit by someone, contrary to the internal auditor who does not expect any law suit by any insider (auditee).
In addition, if the auditee accepted the findings and recognized them, why internal auditors should waste their time documenting the audit process?
Others claim that there is no need to write an audit report. A verbal presentation to top management at the end of the audit process will suffice.
Discuss the above stated issues regarding collecting evidence and reporting findings. In addition, if you are the Internal Audit VP and want to establish your company policy, what are the prime points that you will require your staff to adhere to?
Please cite Textbooks and adequate websites.