Responding to an Audit

You or your manager have attended an exit conference.  At the exit conference, the auditor described the audit’s preliminary and tentative findings and recommendations.  The draft report has been distributed and you have been assigned responsibility for preparing a response.  What do you do?

Internal Audit Responses

The Department's responses to audits should be clearly written, tactful, non-defensive, and grammatically correct.  It is important that all recommendations are addressed.  Differences regarding the facts presented in the draft audit report should be resolved prior to the exit conference or during post-exit conference follow-up.  If there is remaining disagreement with the findings and recommendations, the response should explain the reasons and include supporting documentation.

• To Concur or Not Concur
  For each finding, indicate whether you agree (concur) or do not agree (do not concur) with the finding and recommendation.
• Corrective Action Implemented
  If corrective action has been taken to prevent recurrence of the condition described in the audit finding, the response should indicate both the action taken and the date corrective action was implemented.
• Corrective Action Not Implemented
  If the condition has not been corrected and there is agreement with the finding, the response should indicate what action will be taken and the approximate date corrective action will be fully implemented.  If there is disagreement with the finding, the response should indicate a reason for the disagreement, what (if any) action will be taken to correct the reported condition, and the approximate date the proposed action will be completed.
• Date and Response Signature
  Once the response has been prepared and approved by management, ensure that the document meets the following requirements:
  • Includes the date written;
  • Subject line references the audit project;
  • Typed on Department letterhead (interoffice memorandum format);
  • Addressed to the Director of Auditing; and
  • Signed or initialed by a responsible senior management staff (i.e., assistant secretary, program director, program administrator, etc.).
• DCF Tracker Response Approval
  If you received the document in DCF Tracker, you should indicate the responsible senior management staff who approved the response in DCF Tracker.

External Audit Responses

External audits include audits from the Auditor General, the Office of Program Policy Analysis and Government Accountability (OPPAGA), the Department of Financial Services, or any other audit organization external to the Department.  A response to external audits should meet the same criteria as a response to internal audits, with the exception of the format.

• Transmittal Letter for Agency Head Signature
  The letter should be prepared on Department letterhead, in letter format, and addressed to the audit official.  The letter should reference the date of the preliminary and tentative findings and the name of the audit project.  The letter should also include contact information for responsible management.
• Management Response Attachment
  The response should be an attachment to the transmittal letter.  The response header should include, “Response to Preliminary and Tentative Findings” and the name of the external audit.