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Peer Review Readiness
What State’s Can do to Prepare
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Standard
Policies Audits Review Report
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Standard
Policies Audits Review Report
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Why have a Peer Review?• Who audits the
auditors?• Credibility• Standards
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Yellow Book (GAGAS)
• 3.82 Each audit organization performing audits in accordance with GAGAS must:……b. have an external peer review performed by reviewers independent of the audit organization being reviewed at least once every 3 years.
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Redbook (IPPF)
• 1300 – Quality Assurance and Improvement Program External assessments must be conducted at least once every five years by a qualified, independent assessor or assessment team from outside the organization..
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STANDARDSKnow what standards you are following
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Standard
Policies
Audits Review Report
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Policy or Procedure Manual
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Areas to address
• Independence/Objectivity– Highest level/Audit
Committee– NO Management role
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Areas to address
• Professional Judgement• Competence• Continuing Professional
Education• Quality Control
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Areas to address
• Planning – Annual Plan– Individual audit
planning– Risk Analysis
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Areas to address
• Supervision• Evidence• Documentation• Reporting
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POLICIESMake sure your manual covers everything that it should
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Standard
Policies
Audits
Review Report
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Audits
• List of all audits– Assignment Name/Title– Audit Group Control Number (if applicable)– Personnel Assigned– Staff days/hours to complete– Date report was issued– Who the report was submitted to– Type of Assignment
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Type of Assignment
Which Bucket?• Financial• Performance• Attestation• Non-Audit Service
– Assurance Activities– Inquiry activities– Consulting Activities
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Audit Documentation
• Qualifications• Independence• Due Professional Care• Quality Control
• Fraud, Illegal Acts, Non-compliance
• Evidence/Work papers• Internal Controls• Reporting
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AUDITS
Make sure every audit, review, and service you provide is accounted for, classified and documented.
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Standard
Policies Audits
Review
Report
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Request a Peer Review
• Form to complete – AASHTO• Submitted before /at the Annual Meeting• Chair of the Peer Review Committee– Find team leads– Find team members– Late forms not guaranteed
Peer Review Please!
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Schedule Review
• Available dates from team assigned• Lead will contact the State• Week of Review established– Provide a list of possible hotels…..– Directions– Other important travel info
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Engagement Letter
• Head of Audit Questionnaire• Copies of Relevant Policies, Rules, and
Manuals• Copy of recent Peer Review• List of Audits• Audit Staff Questionnaires• Department Head, Audit Committee, and
Auditee Questionnaire
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On-Site Visit
• Entrance Meeting• Fieldwork– Review Policies– Review Workpapers– Review CPE– Compile Questionnaires – Follow up as needed
• Questions• Daily Update meetings• Exit Meeting• Draft Report, if possible
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REVIEW
This should be a COOPERATIVE process where everyone learns from each other.
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Standard
Policies Audits Review
Report
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Report Process
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Report Process
• Finalize Workpapers• Draft Report to State• State’s Response included• Quality Control Review– Questions addressed to lead/team– Additional Information gathered, if necessary– Adjustments are made
• Peer Review Chair Issues Report
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REPORTThe report says it all……...
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After the Review
• Action plan• Implement changes• Document, document, document
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STANDARD
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Questions?
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Vickie Murphy, Montana Department of TransportationChief Auditor, Audit [email protected]: 406-444-6104Cell: 406-431-3818
Beartooth Highway/ May 2005