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Principles
- The ECA's reports should be objective, complete, clear, convincing, relevant, accurate, constructive and concise.
- An audit report is not a record of all the audit findings recorded in the audit files.
- The special and review reports are drafted on the basis of a
[link title="report%20outline" link="%2Faware%2FPA%2FPages%2FReporting%2FReport-outline.aspx" /]
. In a performance audit, [link title="drawing%20conclusions%20process" link="%2Faware%2FPA%2FPages%2FReporting%2FDrawing-conclusions.aspx" /]
also precedes the drafting of the full report. For the annual report, the starting point is the annual report instructions.
- Reports should be drafted for the attention of an interested but non-expert reader who is not necessarily familiar with the detailed EU or audit context.
- Writing is an iterative process, which means that the draft must be reviewed and changes and improvements made.
Definitions
Quality attributes
Objective (balanced)
An objective report is written from an independent unbiased viewpoint, with actual performance judged against objective (and preferably agreed) criteria. The report should be neutral in tone, be fair and not misleading, with the audit results put into context.
An objective report gives due recognition to positive aspects, and is representative of what was actually found, rather than over-emphasising or exaggerating deficiencies. Criticisms or failings have to be given a weight in the argument and presentation proportionate to their importance. Interpretations need to be based on insight and understanding of the facts and conditions. This can help ensure improved acceptance of the report by the auditee and make the reports carry more authority.
Complete
A complete report contains all information and arguments needed to answer the [multi-link title="stated%20(audit)%20objective" link_1="%2Faware%2FPA%2FPages%2FReporting%2FReport-structure.aspx" title_1="Special%20report" link_2="%2Faware%2FGAP%2FPages%2FCA-FA%2FReporting%2FStatement-of-Assurance.aspx" title_2="Annual%20report" link_3="%2Faware%2Freview%2FPages%2FPreparing-review-reports.aspx" title_3="Review%20report" /]
and to promote an adequate and correct understanding of matters and conditions reported.
Accurate
The evidence presented should be true and all [link title="observations" link="%2Faware%2FPA%2FPages%2FReporting%2FObservations.aspx" /]
correctly portrayed. This is based on the need to assure readers that what is reported is credible and reliable, as one inaccuracy in a report can cast doubt on the validity and credibility of the entire report and divert attention from its substance. In addition, inaccuracies can damage the ECA's credibility and reduce the impact of its reports.
Convincing
The information given should convince the reader of the validity of the findings, the reasonableness of the conclusions, and the benefit of implementing the recommendations. The structure allows the reader to understand what was done, why and how. Therefore, it is imperative that the audit results conclude against the stated (audit) questions; the observations are presented persuasively and are supported by sufficient information and explanations for the reader to understand the extent and significance of these observations; and the conclusions and recommendations follow logically from the facts and arguments presented.
Clear
Clarity requires that the report be easy to read and understand; employing straightforward and non-technical language as far as possible; explaining acronyms and any technical language deemed necessary, and avoiding ambiguity.
The [link title="logical%20organisation" link="%2Faware%2FPA%2FPages%2FReporting%2FReport-structure.aspx" /]
of material, and accuracy in stating facts and conclusions, are essential to clarity and understanding. Effective use of [link title="title" link="%2Faware%2FPA%2FPages%2FReporting%2Ftitle.aspx" /]
and [link title="headings" link="%2Faware%2FGAP%2FPages%2FHeadings.aspx" /]
makes the report easier to read and understand. Visual material (such as pictures, charts and maps) can be used to illustrate and summarise complex material. Well-selected examples also help to clarify the text.
Concise
The report should be no longer than is necessary to convey and support the message. As detailed findings are [multi-link title="communicated" link_1="%2Faware%2FGAP%2FPages%2FCA-FA%2FExamination%2FClearing.aspx" title_1="Compliance%20and%20financial" link_2="%2Faware%2FPA%2FPages%2FExamination%2FClearing.aspx" title_2="Performance" /]
to the auditee during the audit, the report should focus on communicating the overall findings and main messages.
It should use short and simple sentences and paragraphs. Extraneous details or immaterial findings may detract from a report, conceal the real message, and confuse or distract the users. Reports that are as concise as the subject matter allows are likely to achieve greater impact.
Constructive
The report should assist management in overcoming or avoiding problems in the future, by clearly identifying who is responsible for the weaknesses identified and making practical recommendations for improvement. It is not appropriate to criticise management for issues that are beyond their control.
Relevant
The report's contents must be of importance and interest to the report's users:
The report must add value, e.g. by saying something new about the topic.
The report must provide relevant up-to-date information in time to respond to users' needs to be of maximum use and to help contribute to change. Therefore, for performance audit or reviews the [multi-link title="timely%20issuance" link_1="%2Faware%2FPA%2FPages%2FPlanning%2FDetailed-planning.aspx%23Consider-the-likely-outcome-of-the-audit" title_1="Performance%20audit" link_2="%2Faware%2Freview%2FPages%2FReview-task-plan.aspx" title_2="Review" /]
should be embedded in the plan and the audit conducted with this in mind.
Instructions
Drafting process and responsibilities
For special reports, the drafting process starts with the [link title="drawing%20conclusions%20process" link="%2Faware%2FPA%2FPages%2FReporting%2FDrawing-conclusions.aspx" /]
and the establishment of the [link title="report%20outline" link="%2Faware%2FPA%2FPages%2FReporting%2FReport-outline.aspx" /]
. The latter is the starting point also for reviews. This initial phase aims to identify a sound structure as well as to eliminate unsupported conclusions. Consideration also needs to be given at this initial stage to identifying practical, useful recommendations.
Drafting of the report should begin only following the approval of the report outline. The report outline is generally established by the Head of Task. The reporting member should review the outline and approve it, checking if the observations and conclusions are material, and if the evidence supporting the observations, conclusions and recommendations is sufficient, relevant and reliable.
For annual report, the starting point is the annual report instructions.
It is the role of the Head of Task to ensure that the report is drafted and the necessary revisions made following input from the Reporting Member, Chamber Members and the Court. While drafting the report, the Head of Task should keep also a record, which cross-references each observation (per auditee) to the corresponding [link title="audit%20findings" link="%2Faware%2FPA%2FPages%2FExamination%2FDeriving-audit-findings.aspx" /]
. Such a record helps the audit team and reviewers to ensure that all findings are directly sourced from the audit findings and is necessary in order to prepare the [link title="pre-adversarial%20meetings" link="%2Faware%2FPA%2FPages%2FReporting%2FAdversarial-procedure.aspx%23ECA-Auditee-liaison-before-the-final-adversarial-meeting" /]
.
The Reporting Member is responsible for submitting high-quality reports to the Chamber. To this end, the Member should assess whether the report is clearly drafted, fair, balanced, and supported by evidence; decide whether the report faithfully presents the results of the audit; and, in case of a performance audit determine whether the draft places the performance of the auditee in its proper context. Effective supervision and review within the audit team is particularly important in supporting the Reporting Member in achieving a high-quality report. The team may also ask DQC or the English Language Service to assist with the drafting.
Draft report is subject to various [multi-link title="quality%20checks" link_1="%2Faware%2FGAP%2FPages%2FIndependent-quality-review.aspx%23Annual-report" title_1="IQR%20for%20annual%20report" link_2="%2Faware%2FPA%2FPages%2FReporting%2Fquality-checks.aspx" title_2="Performance%20audit" /]
before it is sent for [link title="approval%20by%20the%20Audit%20chamber" link="%2Faware%2FPA%2FPages%2FReporting%2FApproval-publication-discharge.aspx%23Approval-of-the-draft-report-before-the-adversarial-procedure" /]
.
Structure
The full report should follow a [link title="sound%20structure" link="%2Faware%2FPA%2FPages%2FReporting%2FReport-structure.aspx" /]
. The basis is the [link title="report%20outline" link="%2Faware%2FPA%2FPages%2FReporting%2FReport-outline.aspx" /]
. Experience with the actual drafting may require the outline to be changed. Report writers should stick with the structure chosen, but change it if necessary, rather than break it. Including findings that sit outside the main arguments – and therefore structure – of the report will dilute its impact. The corollary is that if you decide that a particular point, sitting outside the structure, is so significant that it must go in the report, then you should change the structure and/or the key messages.
Components
Reports must follow a standard layout, which is defined as follows:
|
Special report
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Review
|
Annual report
|
[link title="Executive%20summary" link="%2Faware%2FPA%2FPages%2FReporting%2FExecutive-summary.aspx" /] [link title="Introduction" link="%2Faware%2FPA%2FPages%2FReporting%2FIntroduction.aspx" /] [link title="Audit%20scope%20and%20approach" link="%2Faware%2FPA%2FPages%2FReporting%2FScope-and-approach.aspx" /] [link title="Observations" link="%2Faware%2FPA%2FPages%2FReporting%2FObservations.aspx" /] [link title="Conclusions" link="%2Faware%2FPA%2FPages%2FReporting%2FConclusions.aspx" /] and [link title="recommendations" link="%2Faware%2FGAP%2FPages%2FRecommendations.aspx" /]
|
[link title="Executive%20summary" link="%2Faware%2FPA%2FPages%2FReporting%2FExecutive-summary.aspx" /] [link title="Introduction" link="%2Faware%2FPA%2FPages%2FReporting%2FIntroduction.aspx" /] [link title="Scope%20and%20approach" link="%2Faware%2FPA%2FPages%2FReporting%2FScope-and-approach.aspx" /] [link title="'Body%20of%20the%20review'" link="%2Faware%2Freview%2FPages%2FPreparing-review-reports.aspx" /] [link title="Closing%20remarks" link="%2Faware%2Freview%2FPages%2FPreparing-review-reports.aspx" /]
|
Chapters and their layout is defined by the annual report instructions
|
The logical progression of the argument must be clearly signposted by means of the appropriate use of [link title="headings" link="%2Faware%2FGAP%2FPages%2FHeadings.aspx" /]
.
Special and review reports include also a [link title="title" link="%2Faware%2FPA%2FPages%2FReporting%2Ftitle.aspx" /]
and '[link title="about%20this%20report" link="%2Faware%2FPA%2FPages%2FReporting%2FAbout-this-report.aspx" /]
' text. Those two elements do not have to be specified until [link title="after%20the%20adversarial%20procedure" link="%2Faware%2FPA%2FPages%2FReporting%2FApproval-publication-discharge.aspx%23After-the-adversarial-procedure" /]
.
The reports should be drafted in an accessible, understandable, persuasive, clear and consistent style. This includes also a consistent presentation of numbers, percentages and monetary symbols.
Carefully chosen non-textual material (diagrams, charts, data and pictures) can improve the appearance of a report and help the reader to understand the background and findings. Externally sourced material must not be used unless we have the appropriate authorisation.
Sound and to-the-point examples are an effective way of illustrating and giving life to technical or theoretical findings thereby helping non-experts to understand the points being made.
Reports may include a glossary or a list of [link title="abbreviations" link="%2Faware%2FGAP%2FPages%2FAbbreviations.aspx" /]
to help non-experts understand the text. However, the use of abbreviations should be limited.
Reports may include to provide the source of facts and views presented in the text.
Appendices may be used to provide information that some readers might find interesting but which is not essential to understanding the report’s messages.
Naming of third parties
The ECA may not identify by name in its reports the natural or legal persons responsible for financial malpractices and irregularities. However, persons may be mentioned by name by way of exception. Naming of third parties in the ECA’s reports or making them easily identifiable by the reader requires exercising great care in verifying the facts and interpreting them, because our "assessments made in such cases of the persons concerned might constitute a fault giving rise to liability on the part of the EU [Community] if the facts on which those assessments were based were not accurately reported or were incorrectly interpreted". ([link new-window title="Ismeri%20case" link="http%3A%2F%2Fcuria.europa.eu%2Fjuris%2Fliste.jsf%3Fnum%3DT-277%2F97" icon="external-link" /]
)
The third party cited also has a [link title="right%20of%20reply" link="%2Faware%2FPA%2FPages%2FReporting%2FApproval-publication-discharge.aspx%23Adversarial-procedure" /]
. Audit team should ensure that the third party is given the opportunity to make observations on points, which refer to the party by name, prior to the [link title="adoption%20of%20the%20report" link="%2Faware%2FPA%2FPages%2FReporting%2FApproval-publication-discharge.aspx%23After-the-adversarial-procedure" /]
.
Length
ECA special reports and reviews should not exceed 10,000 words. This applies to the length of the text including footnotes and endnotes and excluding annexes, glossary, list of abbreviations and auditee replies.
For annual report, an indicative length is defined in the annual report instructions per chapter.
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