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Principles
The observations section is likely to be the longest and most important part of the report. It also tends to be the most challenging to write. Having a sound structure is more than half the battle.
As far as possible, the observations should be structured around the audit questions. This reminds readers of the purpose of the audit, and enables them to have realistic expectations of the report and to be able to place the observations, conclusions and [link title="recommendations" link="%2Faware%2FGAP%2FPages%2FRecommendations.aspx" /]
in their proper context.
However, within this framework, the presentation of the results should help the reader to follow the flow of argument. For example, it may be helpful for the reader if the observations are presented by element of management (e.g. selection and approval of projects), rather than by administrative level (e.g. Commission, member state, regional/local). This allows us to present linked observations together (e.g. implementation of the requirements of the regulation), and to avoid repeating the regulatory background at each level, improving clarity and the flow of arguments.
Instructions
Make sure that your observations contain sufficient information to illustrate how and why the conclusions have been drawn. Four elements should be apparent to the reader:
- Standard (criteria): the basis against which the actual situation was judged - regulatory or normal practice requirements, or standards set by management or by the auditor;
- Work done: what was examined and why - the extent and scope of testing
- Facts: the situation found - including its cause and materiality - making apparent the source and extent of evidence
- Impact and consequences: what the finding means - including the effect on the EU budget - and why it is important
This does not mean that each observation should comprise four separate sections spelling out each of these elements, only that they should be apparent to the reader.
For observations about the consequences of a crisis or emergency (e.g. the COVID-19 pandemic), consult dedicated [link title="guidance" link="%2Faware%2FGAP%2FPages%2FAuditing-in-crisis-or-emergency.aspx%23Observations" /]
.
Resources
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