SLIDE 1
2
Association of Inspectors General Planning and Performing the Audit - - PowerPoint PPT Presentation
Association of Inspectors General Planning and Performing the Audit - - PowerPoint PPT Presentation
Association of Inspectors General Planning and Performing the Audit Presented by William J. DiVello Assistant Inspector General for Audit District of Columbia Office of the Inspector General Objectives This course will provide an overall
SLIDE 2
SLIDE 3
3
Factors to Consider in Planning the Audit Auditors must adequately plan and document the planning of work
The plan needs to address audit risk Identify relevant criteria Assign qualified staff Prepare written audit plan
SLIDE 4
4
Basic Theme Good Audit Survey = Quality Audit
SLIDE 5
5
Agenda
The audit survey –what is it Typical survey approach Survey information needs Ways to obtain survey information Summarizing survey results Test
SLIDE 6
6
The Audit Survey – What is it?
The first step in an audit An educational process Risk assessment of the audited entity
SLIDE 7
7
Main Purposes
Identifying problem areas warranting
additional review
Obtaining information for use in planning
and performing the detailed review work to follow
SLIDE 8
8
Focus Of Survey
Economy and efficiency Program results
SLIDE 9
9
Audit Survey Factors
Background Management Input Internal controls Legal Implications Available
Resources
Audit Survey Debrief
- Technical Needs
- Previous Audits
- Management Reviews
- Automated
Systems/Databases
- Audit Guide Program
SLIDE 10
10
Risk Assessment Factors
Mission Asset Values Funding Procurement Prior Audits Vulnerability/Internal Controls
SLIDE 11
11
Typical Survey Approach
Broad Appraisal Narrow Narrow Scope
SLIDE 12
12
Practical Information
How the operations are actually carried out How necessary or useful the various work
steps are
The process used to monitor results, and Whether the work satisfies legal
requirements, established goals, and common sense practices.
SLIDE 13
13
Survey Information Needs
General Background information on the agency
and the programs and activities it administers;
Extent and nature of the agency’s authority and
responsibility;
Goals and objectives established by legislation and
by the agency; and
Preliminary observations on the extent desired
goals are being achieved,
SLIDE 14
14
Background Information
Organization Financing Operating methods
SLIDE 15
15
Authority
Laws Legislative history Judicial decisions
SLIDE 16
16
Goals and Objectives
Economy and efficiency audits Program results
SLIDE 17
17
Ways To Obtain Survey Information
Discussions with agency officials Interviews with others Physical inspection Reviews of management’s reports Test transactions Flow charts
SLIDE 18
18
Summarizing Survey Results
The problems and rationale for pursuing them in
more depth
Pertinent information developed during the survey
phase,
Suggested work steps and the reasons for them, Preliminary estimates of time and resource
requirements – particularly for personnel
Target date for completing the review and
reporting phases
SLIDE 19
19
Reporting Survey Results
Background information about the program, system, activity, criteria, or function(s) to be reviewed.
Management comments, suggestions, and other pertinent results of the entrance conference.
A statement concerning coordination with other Government auditors, investigators, and inspectors, when applicable.
SLIDE 20
20
Reporting Survey Results
A statement on whether prompt and appropriate corrective actions have been taken by officials of the reviewed organization(s)/program(s) on the recommendations in the most recent IG and Government Accountability Office reviews (pertaining to the areas under audit).
Identification of automated systems/databases from which data should be extracted to perform the audit. Staff will use professional judgment in determining whether the information is sufficiently reliable and valid.
Audit objectives and scope and, if appropriate, justification for proposed changes in objectives.
A firm recommendation to either (1) proceed into the verification phase or (2) curtail audit work.
SLIDE 21
21
Audit Verification
Detailed testing Progress and Accomplishments Finding Development
SLIDE 22
22
Audit Control Mechanisms
In-Process Reviews Index of Findings Finding Outline Draft Finding
SLIDE 23
23
12 Step Approach to Performing a Quality Audit
1.
Maintain neat, organized working paper files
2.
Prepare audit Guide program (AGP)
3.
Reference AGP to workpapers
4.
Make sure to explain purpose, source, scope, and methodology
5.
Initial workpapers
6.
Reference summary worpapers to supporting workpapers
SLIDE 24
24
12 Step Approach to Performing a Quality Audit (con’t)
7.
Document supervision
8.
Ensure that preparer and reviewer are never the same
9.
Have an independent referencing review conducted
- ver the work
10.
Document necessary corrections based on IRR
11.
Maintain a cross-index of draft and final reports
12.
Ensure compliance with GAGAS
SLIDE 25
25