ABSTRACT
The internal audit activity must assess and make appropriate recommendations to improve the organization's governance processes for: Making strategic and operational decisions. Final communication of engagement results must include applicable conclusions, as well as applicable recommendations and/or action plans. Engagement recommendations are based on the auditors' observations and conclusions. Recommendations may suggest approaches to correcting or improving conditions and performance, and should help management achieve desired objectives. Recommendations should be developed carefully, giving consideration to the costs of their implementation in relation to the expected benefits. Internal auditors can add value by providing recommendations to their audit clients. This way, auditors are not only communicating issues, but also possible solutions to the issues. Recommendations should balance the cost of implementing the corrective action in relation to the benefits expected from it. This practice is consistent with a risk-based approach and reduces bureaucracy, excess paperwork, and unnecessary work.
