Peer Review Readiness What State’s Can do to Prepare

StandardPoliciesAuditsReviewReport

Standard PoliciesAuditsReviewReport

Why have a Peer Review? Who audits the auditors? Credibility Standards

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.

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..

STANDARDS Know what standards you are following

Standard Policies AuditsReviewReport

Policy or Procedure Manual

Areas to address Independence/Objectivity – Highest level/Audit Committee – NO Management role

Areas to address Professional Judgement Competence Continuing Professional Education Quality Control

Areas to address Planning – Annual Plan – Individual audit planning – Risk Analysis

Areas to address Supervision Evidence Documentation Reporting

POLICIES Make sure your manual covers everything that it should

StandardPolicies Audits ReviewReport

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

Type of Assignment Which Bucket? Financial Performance Attestation Non-Audit Service – Assurance Activities – Inquiry activities – Consulting Activities

Audit Documentation Qualifications Independence Due Professional Care Quality Control Fraud, Illegal Acts, Non- compliance Evidence/Work papers Internal Controls Reporting

AUDITS Make sure every audit, review, and service you provide is accounted for, classified and documented.

StandardPoliciesAudits Review Report

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!

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

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

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

REVIEW This should be a COOPERATIVE process where everyone learns from each other.

StandardPoliciesAuditsReview Report

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

REPORT The report says it all……...

After the Review Action plan Implement changes Document, document, document

STANDARD

Questions?

Vickie Murphy, Montana Department of Transportation Chief Auditor, Audit Services Work: Cell: Beartooth Highway/ May 2005