NWC Rural NPR Auditing Requirements…

This is the first year that pricing and service quality performance indicators for rural water service providers will be universally audited.

Part of the NPR handbook explains how this aspect of water accounting will be audited.

AUGUST 2013

Rural water service providers must all report the same pricing and service quality data.

NPR audits look at the accounting processes, the reported data and the presentation of data. NPR auditors must follow ASAE 3000.

NPR audits must provide reasonable assurance.

Audit report templates are provided. They consist of two parts; a short form opinion, and a more expansive table of findings.

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WHAT DOES IT SAY.

AUGUST 2013

The requirements may not be consistent with ASAE 3000 in a couple of ways:•They do not require auditors to have qualifications in audit or assurance (they do require them to have qualifications in water engineering).•They allow an auditor to undertake assurance while they have an existing conflict of interest.

Both may mean that the quality of audits in this area are less robust than expected by the AUASB Framework for Assurance Engagements.

WHAT ELSE DOES IT SAY.

AUGUST 2013

Auditors are required to assess reliability and accuracy of data, and to determine whether data should be reported.

Data may have A, B, C or D level reliability, where A is the best. For auditors, this is ‘sufficient and appropriate’ evidence.

Data may also have 1, 2, 3, or 4 level of accuracy, where level 1 data has +/- 5% possibility of error. For auditors, this is materiality.

WHAT ELSE DOES IT SAY.

AUGUST 2013

• The grading system for reliability, accuracy and reporting should be the focus for improving professionalism in water accounting.

• The ‘paint by numbers’ approach taken in these requirements are indicative of a lack of confidence in water accounting and auditing

. The comments on these slides are the views of Tim Kirby, Sydney. You should always read the report itself before putting any money on the line.

WHAT DOES IT MEAN.

Tim Kirby, Sydney CA, CIA, LA-EMS

au.linkedin.com/in/timkirbysydney

AUGUST 2013

• The grading system for reliability, accuracy and reporting should be the focus for improving professionalism in water accounting.

• The ‘paint by numbers’ approach taken in these requirements are indicative of a lack of confidence in water accounting and auditing

. The comments on these slides are the views of Tim Kirby, Sydney. You should always read the report itself before putting any money on the line.

WHAT DOES IT MEAN.

Tim Kirby, Sydney CA, CIA, LA-EMS

au.linkedin.com/in/timkirbysydney

AUGUST 2013