The following are examples of internal audit activity reports that might be useful to the external auditor:

1. Internal Control Evaluation Reports:
   • Reports documenting the internal audit’s assessment of the design and operating effectiveness of internal controls over financial reporting.
   • Useful for identifying weaknesses or confirming strengths in areas relevant to the external auditor’s risk assessment.
2. Compliance Audit Reports:
   • Reports covering compliance with laws, regulations, and company policies, especially in areas impacting financial reporting, such as tax regulations or regulatory filings.
   • These help the external auditor evaluate potential legal or compliance risks.
3. Operational Audit Reports:
   • Reports on the efficiency and effectiveness of operational processes, which may include key financial processes like inventory management, procurement, or payroll.
   • Provides insights into areas where operational inefficiencies could lead to financial misstatements.

By reviewing these reports, external auditors can enhance their understanding of the entity’s risk environment, evaluate areas of reliance on internal audit work, and better plan their audit procedures.