Internal Audit Issues and Corrective Action Plans (or Recommendations)
The 4 Cs Approach: Explanation and Example The 4 Cs approach is a structured method for writing internal audit issues and recommendations. It ensures that findings are clearly communicated, comprehensive, and actionable. The 4 Cs stand for Cause, Concern, Context, and Consequence. Here's an explanation of each component, along with an example related to non-adherence to EBA guidelines in IFRS 9 models. 1. Cause: The underlying reason or root cause of the issue identified during the audit. Explanation: - The Cause identifies why the issue occurred. It involves looking deeper into the processes, policies, or behaviors that led to the problem. - Understanding the Cause is crucial for developing effective recommendations to prevent recurrence. 2. Concern: The specific issue or deficiency identified. Explanation: - The Concern describes the actual problem or deficiency found during the audit. - It provides a clear statement of what is wr...