Recording the Corrective Action Plan

Overview

For background information about audit exceptions and corrective actions, see Resolving Audit Exceptions and Creating a Corrective Action Plan.

Key elements of a corrective action plan are recorded in the auditing system. These elements are:

• A detailed explanation of each audit exception. The explanation is based on the stake auditor’s observations.
• A corrective action for each audit exception. The corrective action is written by the unit leader. It describes what will be done to correct the problem the stake auditor observed and how the unit leader or clerk will correct the fundamental cause of the audit exception.

Roles and Responsibilities for the Corrective Action Plan

The stake auditor, unit leader, and stake audit committee chairman have distinct roles and responsibilities for the corrective action plan.

Stake Auditor—Write the Explanation of the Audit Exception

When a stake auditor identifies an audit exception, they mark the audit question “No.” A text box appears below the stake auditor’s response, requiring them to provide details about their observations and, if possible, an explanation of why the audit exception occurred.

The stake auditor’s explanation becomes part of the corrective action plan and is displayed in the Auditor’s Explanation field in the Audit Review section.

To change an explanation, the stake auditor follows the steps below:

1. Make sure the audit is not signed and submitted by the stake president for wards and stake audit committee chairman for stakes.
2. Near the top of the page, use the navigation bar to select the audit question for which you need to change the explanation.
3. Change the explanation.

Changes are saved automatically.

If the stake auditor has previously signed the audit, they do not need to re-sign. For information on signing audits, see Signing and Submitting an Audit.

Unit Leader—Write the Corrective Action

The unit leader should clearly understand what caused each audit exception. He should accept the responsibility to correct both the observed problem and its fundamental cause. He inputs a corrective action for each exception in the Audit Review section of LUFAS.

If the unit leader needs help understanding the exception’s impact or cause, or if he needs help developing an effective corrective action, he should ask the stake auditor or the stake audit committee for guidance.

The unit leader then signs the audit. For information on signing audits, see Signing and Submitting an Audit.

Stake Audit Committee Chairman, or Stake Audit Committee

After the unit leader has signed the audit, the stake audit committee meets to review each audit exception and to review and approve each corrective action. The stake audit committee conducts the review to obtain an understanding of the exception and effectiveness of the unit leader’s corrective action. Upon acceptance of the corrective action, the audit committee signs the audit. If signed by a committee member, the audit moves on to the Committee Chairman for signature. If the Committee Chairman is the person approving the corrective actions, the audit moves directly to the stake president upon the Chairman’s sign off. Within 30 days of the due date of the audit, the stake audit committee chairman or audit committee member follows up with the unit leader to ensure that the corrective action has been implemented. This is documented by checking the box in the Audit Follow-up section for each exception.

For information on signing audits, see Signing and Submitting an Audit.