In which audit activity is communication of findings to management conducted?

The communication of findings to management is primarily conducted during the reporting phase of an audit. This stage is crucial as it focuses on summarizing the audit results and conveying the findings, conclusions, and recommendations to the management of the organization.

During the reporting phase, internal auditors compile the data collected and analyzed during previous audit activities, such as planning and fieldwork, into a cohesive report. This report not only outlines the findings but also includes evaluations of the implications of those findings, providing a clear narrative and justification for the recommendations made. It serves as a formal communication tool that ensures management is informed about identified issues, risks, and opportunities for improvement.

What distinguishes the reporting phase is its emphasis on clarity and actionable insights for management. The findings communicated here are essential for decision-making processes, enabling management to implement necessary changes and address any weaknesses or concerns highlighted during the audit.

In contrast, during the planning phase, auditors are focused on defining the objectives, scope, and approach of the audit, while the fieldwork phase involves collecting and analyzing data. The follow-up activity, on the other hand, focuses on assessing whether management has effectively acted on previously reported findings. Therefore, the reporting phase is where the communication of findings to management is formally executed.