Questions:

1. What are the characteristics of a good internal report? maximum of two (2) short
paragraphs only.
Having a brief description and at the same time being able to convey a clear
understanding of what will be assessed, showing the objective of the audit, and being
able to prepare and submit it early is better than being late. Being precise, accurate, and
specific. It can be just a bad reporting practice to supply too much information which
overwhelms the reader, and a little leaves them guessing, that is why relevant accurate
data is a must include in the report. If not so, it will involve unnecessary expenditure and
the reports will be a waste. It should also contain details like the period of time of
preparing the report, the period covered in the report, date of presentation of the report,
the units of information, the name of the person preparing and presenting it, names of
persons to whom it is being submitted.
2. Why is there a need for interim reports ? one (1) paragraph only
Interim reports provide information, and also give out an excellent insight into the
financial performance of the business that you are currently handling/working at, and
allow you to address any potential issues before they become too troublesome and cost
a greater risk.
3. Discuss briefly the different phases of the Internal Audit Report (maximum of 2 short
paragraphs only).
The executive summary includes the objectives, scope, a brief description
rationale, the criteria and approach, and the conclusion, basically a short version of the
internal audit report, now for the statement of assurance which provides a conclusion
that is relative to the audit objectives, it also must follow auditing standards. Objectives
are the reasoning for the engagement of the objective, the scope is the contexts and the
period covered. Approach and methodology show the work that was conducted and the
standard used, conclusions, and audit opinions consist of qualifications, evaluation, and
recommendations of the auditor. For the audit findings and observations, the conditions,
criteria, cause, and effects are given. Recommendations are the actions required and
responsibility that suggests approaches. A management action plan or corrective actions
are recommendations that must be taken care of, and lastly is the other parts of the
reports consist of table contents and appendices.
4. Audit Opinion

Given:

 The Sales Dept. of KGG Company was audited by the Internal Audit Dept. for
the year 2020
  The internal control system of the Sales Dept. was found to be in order
overall.
   One of the observations was the  regular delay in the recording of day's
sales.

Question 1: What internal audit opinion is applicable for this scenario?

I chose - Qualified Opinion (Material weakness in certain areas)
Question 2: Prepare the internal audit opinion (1 paragraph only)
Above are the details showing the matters that will be discussed. In our opinion
except for having the sales dept in order, they are unable to effectively and efficiently
make use of other procedures to meet the standards, KGG Company has maintained, all
in all, they have a grasp on the internal control as of the year 2020.