Scoping and planning phase
Once we are ready to start a new audit, we enter the scoping and planning phase.
The Auditor-General will send a letter to the head of the entity*, as well as the Parliament, advising commencement of audit planning.
In that letter we ask the entity to nominate a sufficiently senior contact officer (a Deputy Secretary, for example) with whom the audit team will engage. We conduct an entry meeting with nominated officer, and any additional personnel they choose to attend. We will introduce the audit team and discuss the broad topic, approach and timing of the audit.
We may ask for initial information and conduct some follow up discussions to help us develop our audit plan. This is to ensure the audit team has a sufficient understanding of the entity and its operating environment.
We then send you a copy of the audit plan to the entity once it is finalised. This includes an audit scope (inclusions and exclusions) and audit criteria (key questions and how we will assess performance). Once this has been finalised, we commence the implementation phase of the audit.
Implementation phase
This is where we conduct our fieldwork and analysis to answer the questions posed in the audit plan.
We conduct interviews with relevant people in the entity and request access to documentation, records and data. We may visit the worksites or access relevant systems. On some audits, we may even hold focus groups or conduct surveys.
The contact officer helps coordinate and facilitate the audit team’s requests for access to people, premises and information.
After gathering and analysing sufficient evidence we develop what we call ‘preliminary findings,’ which sets out our key findings against the audit criteria. This is a first opportunity for the entity to hear what we have found, and we may present early thoughts on potential audit recommendations. Overall, it is an opportunity for the entity to provide input, ensure factual accuracy, and provide additional audit evidence. Once we have provided the entity with our preliminary findings, we commence writing our report.
Information-gathering powers
The Auditor-General can direct a person to provide any information, explanation or documents that the Auditor-General requires. Part 5, Division 2 of the Act outlines the information-gathering powers of the Auditor-General. The entities are required to ensure that staff involved in an audit:
- understand these powers
- cooperate with any requests by the audit team, and
- provide the requested information within a reasonable timeframe.
Reporting phase
During this phase we may have some clarification or follow up questions for the entity as we put the report together. Once the Auditor-General is satisfied with the report, we send the draft to the contact officer and head of entity. Attached will be a ‘response grid,’ where the entity can record detailed feedback on the report. In particular, we seek the entity’s agreement with any proposed recommendations as these will ultimately be implemented by the entity. Usually, we allow around 2 weeks for this process.
The report is then reviewed and amended by us, where relevant. We then send this to the Treasurer, relevant Minister(s) and the head of entity for a formal response. These responses are published in the final report. This is a shorter timeframe – normally around 3 to 5 business days.
The final report is then tabled in both Houses of Parliament and published on our website. The media is also notified. Finally, the audit team delivers a presentation to Parliamentarians.
What happens next?
Follow up
We may later perform a follow up audit to examine the entity’s progress implementing the recommendations in the report. This usually occurs 2 to 4 years after tabling.
In the interim, the entity may be asked to report regularly to its audit and risk committee about progress towards implementing our recommendations.
In certain cases, a parliamentary committee may decide to hold an inquiry into our report or subject matter related to it.
Any questions?
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