4200-Exit Conference

 

Purpose

The purpose of an exit conference with the auditee is to develop a mutual understanding of the content of the draft report and audit concerns that are not in the report. This should avoid any misunderstandings or misinterpretations of fact by providing the opportunity for the auditee to clarify specific items and to express views on the significant audit concerns, corrective action and other information presented in the draft report. This meeting should also ensure that the auditor does not receive any surprises in the formal response from the auditee. Additionally, the exit conference should serve as an opportunity to develop a feeling that the report is offered in a spirit of correcting conditions.

 

Timing

The Campus Director of Internal Audit should contact auditee management to determine a suitable time and location for the exit conference and distribution of the report drafts. The exit conference should be scheduled at a mutually convenient time.

 

Attendees

Attendees should include anyone who may be able to object to the validity of the report’s contents and anyone having responsibility for the area or condition needing corrective action (i.e., the management team), whether or not they personally would take the action or would be affected by the action.

 

Discussion

The exit conference can be either a grim confrontation or an open and courteous discussion. The discussion topics at each exit conference will vary depending upon several factors including audit concerns noted and the exit conference attendees. At a minimum, the auditor should be prepared to summarize the audit including what we did (objective, scope, procedures) and why (thought process behind our decisions, what risks we perceived), the significant audit concerns and how we anticipate the corrective action to address the associated risk, significant audit concerns which have already been corrected and lesser concerns identified in the audit (supported by audit observation forms). The auditor should be willing and able to discuss all matters in whatever detail is necessary. Other items to be included in the discussion include the cooperation obtained during the audit and the fact that the report contains no surprises since all significant audit concerns were discussed with auditee personnel during fieldwork.

 

 

 

 

Avoiding Confrontation

The auditor should be prepared for the possibility of conflict when presenting the concerns in the audit report and should be able to retrieve information, support facts and amplify findings without difficulty or delay. To encourage the avoidance of confrontation during the exit conference, the auditor should use good manners and non-personal phrases (e.g., avoid starting a sentence with "you" when disagreeing), make efforts to get on common ground, avoid backing the auditee into a corner and not mistake the airing of views with disagreement.

 

Addressing Confrontation

Often all that is necessary is to let the auditees express their views. Perhaps they do not really disagree but merely want a chance to justify their position or to explain the reasons for the conditions the auditor found. After they have made their point, they may be perfectly willing to let the wording of the draft stand as written. In some situations, the mere offer to quote the auditee may end the disagreement.

 

Auditors must adjust accordingly based on discussions and facts presented. The auditor must maintain a state of fairness, objectivity and concern solely with what is factual and significant. To that end, the auditor should not be averse to changes that make for more understandable and more accurate reports and do not compromise the audit opinion.

 

Draft Revisions

The auditor should be willing to accept wording changes or other suggested revisions that they believe are appropriate as long as the changes do not alter the opinion or the focus of the significant audit concern or corrective action. When there is an irreconcilable disagreement with no misinterpretation of fact (the facts must be agreed upon), the auditor may then point out that they must report matters as they see them and that they are willing to incorporate the auditee’s views, or response, as well.

 

 

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