Turn Audit Findings into Action: Why Tracking Recommendations Reduces Risk

Every independent assurance assessment and audit report, whether internal or external, produces valuable insights in the form of audit findings, recommendations and actions. Yet, too often, these recommendations end up in spreadsheets, emails, or forgotten folders – with little follow-through. For organisations where good governance and accountability is critical, outdated recommendation tracking and follow up processes can be risky and costly.

Recording, assigning, and tracking audit recommendations is not just good governance, it’s essential for reducing risk and demonstrating accountability.

Why Recording Audit Findings Matters

Too often organisations mark recommendations as “closed” on paper, only for auditors to find the same issues again. In fact, a recent Audit Office of NSW report found that 40% of findings in local government are repeats findings.

Audit recommendations can represent both risk mitigation and opportunity for improvement. When left unrecorded, unmonitored or unmanaged, organisations face:

• Repeat audit findings, leading to reputational and operational risk.

• Compliance gaps that may attract regulatory scrutiny.

• Increased likelihood of errors, fraud, or data breaches.

A structured approach ensures that no recommendation is lost, misinterpreted, or ignored.

Assigning Audit Findings and Actions to Responsible Managers

Effective audit follow-up begins with ownership. Each recommendation should be:

1. Assigned to a specific manager or team.

2. Supported by clear instructions, expected outcomes, and deadlines.

3. Integrated with existing workflows and risk registers.

This accountability ensures that audit insights translate into tangible improvements rather than ticking boxes.

Providing Regular Updates to Management and the Audit & Risk Committee

Transparency and oversight are critical. Regular reporting allows executives and audit committees to:

• Monitor progress against recommendations.

• Identify obstacles early and allocate resources to high-priority items.

• Demonstrate governance and compliance to regulators and stakeholders.

Dashboards, automated reminders, and evidence attachments help ensure that reporting is accurate, timely, and defensible.

Best Practices for Audit Action Management

To maximise impact, organisations should:

• Maintain a centralised register of all recommendations.

• Use a risk-based prioritisation approach to assign deadlines and resources.

• Implement evidence-backed closure, documenting actions taken.

• Schedule regular review meetings with management and audit committees.

• Integrate audit recommendations into ongoing risk management and assurance frameworks.

These steps not only close the loop on audit recommendations but also improve organisational resilience, accountability, and performance.

Conclusion

Audit recommendations are only valuable if they are actioned, monitored, and reported. By recording recommendations, assigning accountable managers, and providing regular updates to leadership and audit committees, organisations can turn insights into results – reducing risk, strengthening governance, and avoiding the costly consequences of repeat findings.

Ready to Take the Next Step?

Stop struggling with spreadsheets and see how GuardianERM’s audit and assurance tracking module can streamline recommendation management and help your organisation stay ahead of risk. Contact us today for a personalised demo and discover how your organisation can improve reporting efficiency, strengthen governance, and reduce operational risk.