Exceptions and Recommendations Guidelines
All audit exceptions identified should be included in the electronic workpaper file and cross-referenced to the supporting audit program steps and/or workpapers. Well-developed exceptions should include the 5 elements of an audit finding as described below:
- Criteria – What should be (standard)
- Condition – What is
- Cause – Why deviation from Criteria occurred
- Effect – What happened or could happen because the condition differed from the criteria
- Recommendation – What is needed to correct the condition and/or resolve the cause
The final resolution for each exception should be documented in the electronic workpaper file (e.g. included in the report, verbally communicated to the client, waived due to XYZ reason, etc.). It should also be documented whether the exception is considered Significant or not. Per http://www.utsystem.edu/policy/forms/uts129/ex_A.doc “Significant audit findings/recommendations are reportable audit findings/recommendations that are deemed significant at the institutional level by the institution internal audit committee or their designee.”