What key element must be included in an internal audit report?

An internal audit report is a critical document that communicates the findings of the audit to stakeholders, including management and the board of directors. Including an executive summary that outlines the findings, conclusions, and recommendations is vital because it provides a concise overview of the audit's key results and informs decision-makers about areas that require attention.

The executive summary serves several purposes. It allows readers to quickly grasp the most important outcomes of the audit without needing to delve into detailed sections, which may be lengthy or complex. It highlights significant issues identified during the audit and emphasizes actionable recommendations that can improve processes or mitigate risks. By summarizing these critical points, stakeholders can make informed choices and prioritize actions based on the audit findings.

The other options, while potentially relevant in some contexts, do not encapsulate the key components necessary for an effective internal audit report. Detailed staff processes may be part of an audit's scope but would not be the focal point of a summary. Reports on member satisfaction surveys and budget analyses, although important for overall assessment and planning, do not directly address the internal audit's primary goal of evaluating risk management, control processes, and governance.