Report Classification	The internal audit identified one or more of the following:
Optimally Controlled	Well-structured design effectively achieves fit-for purpose control objectives Controls consistently applied and operating at optimum level of effectiveness.
Managed	Sound design achieves control objectives. No control design improvements identified. Controls consistently applied. Only minor instances of controls identified as not operating, which have mitigating back-up controls or the risk of loss is immaterial. All previous significant audit action items have been closed.
Some Improvement Opportunity	Control design improvements identified, however, the risk of loss is immaterial. Isolated or “one-off” significant controls identified as not operating for which sufficient mitigating back-up controls could not be identified. Numerous instances of minor controls not operating for which sufficient mitigating back-up controls could not be identified. Some previous significant audit action items have not been resolved on a timely basis.
Major Improvement Opportunity	Design is not optimum and may put control objectives at risk. Control design improvements identified to ensure that risk of material loss is minimized and functional objectives are met. A number of significant controls identified as not operating for which sufficient mitigating backup controls could not be identified which may put control objectives at risk. Losses have occurred as a result of control environment deficiencies. Little action taken on previous significant audit findings to resolve the item on a timely basis.
Unacceptable Risk Exposure	Control design leaves the opportunity for loss, error or abuse. Significant control design improvements identified to ensure that the risk of material loss is minimized and functional objectives are met. An unacceptable number of controls (including a selection of both significant and minor) identified as not operating for which sufficient mitigating back-up controls could not be identified creating the opportunity for loss, error or abuse. Material losses have occurred as a result of control environment deficiencies. Instances of fraud or significant contravention of corporate policy detected. No action taken on previous significant audit findings to resolve the item on a timely basis.

Audit report classification