Audit Findings

What is an Audit Findings?

Audit Findings are formal observations, conclusions, or identified issues that result from an audit process. These findings are documented by auditors, either internal teams or independent third parties, after evaluating an organization’s or vendor’s adherence to defined policies, regulatory requirements, and control frameworks.

In the context of third-party risk management, audit findings may relate to deficiencies in vendor security practices, missing documentation, non-compliance with contractual obligations, or weaknesses in risk controls. Findings are typically categorized by severity and assigned a status such as open, in progress, or closed. They form the basis for corrective actions and are critical to demonstrating due diligence, regulatory readiness, and continuous improvement across the vendor lifecycle.

FAQs

What is typically included in an audit finding?

An audit finding usually includes a description of the issue, the control or policy it relates to, evidence supporting the finding, its risk severity, and recommended remediation actions. It may also include deadlines or follow-up dates for resolution.

How do audit findings impact third-party risk programs?

Findings related to vendors can reveal control gaps or compliance failures that require immediate remediation. They can trigger reassessments, risk score adjustments, or escalations depending on the severity of the issue and its potential impact.

How should organizations manage and respond to audit findings?

Organizations should track findings through a centralized system, assign ownership, define remediation timelines, and document all actions taken. This ensures transparency, supports internal governance, and demonstrates audit readiness to regulators or stakeholders.