Course Information
High Impact Performance Auditing: Advocacy, Mapping, Objectives, Methodology and Evidence
Parking for SAO, Professional Development courses is in Garage B (1511 San Jacinto Blvd.). The Garage signage may read 1511 San Jacinto or Garage B. The elevator in Garage B is not reliable. If you are unable to walk the stairs, please contact the professionaldevelopment@sao.texas.gov for alternate parking arrangements. Handicapped parking is free at the meters around the downtown area.
A course coordinator will Email you a parking permit prior to the course start date. A permit must be displayed or you will be ticketed.
Course Description
From a performance auditing advocacy perspective, this course instructs participants on how to move through the planning and field work phases of a performance audit to accomplish high impact outcomes. Accordingly, this course will help enable participants to understand the program being audited, correctly identify significant audit issues, develop high impact audit objectives, understand options for selecting methodologies, and assure sufficient and appropriate evidence in compliance with Yellow Book Standards.
Course Objectives
Upon completion of this course, participants will be able to:
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Understand an overview of the performance auditing process from an advocacy perspective.
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Conduct program mapping, identify performance expectations as the basis for developing audit issues, and develop significant audit issues.
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Develop audit objectives and sub-objectives; understand the need to support the objectives and sub-objectives with selected methodologies and types of evidence; and anticipate the impact on potential audit recommendations.
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Understand and apply approaches for assuring sufficient and appropriate audit evidence.
Course Outline
Module One: Advocating the Concept and Impact of Performance Audits
A. Purposes and outcomes of performance audits
B. Distinction between performance and financial audits
C. Phases of performance audits
Planning—including audit selection, survey, and detailed planning
Fieldwork—including development of evidence, findings, and conclusions
Reporting—including interim and final report
Follow Up—including management and auditor responsibilities
D. Implications/requirements for conducting performance audits
· Communication with stakeholders necessary throughout the process
· Consideration of risk encompasses more than financial loss, sampling error, or reporting unreliability
· Variety of disciplinary expertise needed; increased flexibility required of auditors with respect to learning and working with others
· Conceptualization and critical thinking skills are essential
Module Two: Mapping Government Programs and Identifying High Impact Audit Issues
A. Map each program being audited by describing inputs, processes, outputs, and outcomes
B. Use a performance expectations model to formally develop at least criteria and preliminary conditions during planning to leave more room in fieldwork for root causes and high impact effects
C. Use risk and vulnerability assessment to prioritize audit issues.
Module Three: Developing High Impact Performance Audit Objectives
A. Select significant audits based on annual or multiyear planning process
B. Develop preliminary audit objectives based on initial audit planning
a. Understand where audit objectives come from (mandate, request, and auditor judgment)
b. Understand the needs of potential report users
c. Understand the nature of the program or subject being audited, including management’s performance management and measurement system
d. Identify potential preliminary audit objectives (sources of audit objectives)
C. Refine/Develop audit objectives and sub-objectives
a. Understand audit standards pertaining to audit objectives
b. Review characteristics of well-developed audit objectives
c. Understand the potential subjects which could be selected for audit (entire program or a subsets such as systems, processes, and specific services or activities)
D. Implement decision process to select and prioritize audit subjects and performance aspects (audit objectives)
E. Based on selected audit subjects and performance aspects, formulate/finalize audit objectives
F. Develop scope and methodology for each objective
a. Understand the menu of methodologies available for performance audits
b. Understand the approach for selecting the most effective methodologies
Module Four: Assuring Sufficiency and Appropriateness of Audit Evidence
A. Audit evidence definitions, concepts, and standards
a. What are the types of audit evidence and the strengths and weaknesses?
b. Where does audit evidence come from?
c. What makes audit evidence appropriate and sufficient?
d. How does audit evidence derive from the audit objectives and approach selected?
B. Strengths and weaknesses of evidence from the perspective of gathering and assuring evidence
a. Gathering appropriate, sufficient evidence through methodologies
b. Assuring evidence using critical thinking, professional judgment, and selected methodologies
c. Developing triangulated evidence to answer the audit objectives
d. Documenting audit evidence
Instructors
Stephen Morgan, CIA, CGAP, CGFM, CFE, is the president of Excellence in Government Accountability and Performance Practices, Inc. (EGAPP), which specializes in training government auditors and managers. He is a co-author of Performance Auditing, 3rd edition, which was fully revised and updated in 2016.
Morgan joined the internal audit function in the city of Austin, Texas, in 1985, and became the city auditor in 2000, responsible for directing performance audits, conducting fraud investigations, and performing consulting engagements. Previously, Morgan was an auditor in the U.S. Government Accountability Office's National Productivity Group for eight years, responsible for auditing federal productivity programs. Morgan served for five years on the Advisory Council on Government Auditing Standards (Yellow Book), as chairman of the National Intergovernmental Audit Forum's Emerging Issues Committee, and as an executive committee member of the Southwest Intergovernmental Audit Forum.
Throughout his career, Morgan has instructed, designed, and delivered courses on performance measurement, management, and auditing. For more than 25 years, he served as a faculty member for the Graduate School and the Government Audit Training Institute in Washington, D.C. Morgan has co-authored four performance auditing textbooks and contributed as co-author of a chapter for the 2007 World Bank publication Performance Accountability and Combating Corruption. He also co-authored The IIA's CGAP Study Guide, 4th edition, and has spoken at IIA international conferences around the world. Morgan has been an active member and leader of The IIA at local, regional, national, and global levels, serving on numerous committees and boards, including Chairman of the North American Board. Over his career, Morgan has received top honors from the Comptroller General of the United States, American Society of Public Administration, and The IIA, including the Victor Z. Brink Memorial Award for Distinguished Service and election into the American Hall of Distinguished Audit Practitioners.
Additional Information
TAC Rule 523.142(g) requires the CPE Sponsor to monitor individual attendance and assign the correct number of CPE credits. Participants will be asked to document their time of arrival and departure in compliance with this Rule. Additionally, attendance will be monitored throughout the day and CPE certificates will reflect actual attendance of each participant.
If you are making travel plans to come to Austin, we recommend making "refundable" air and hotel reservations or waiting until 14 days before the class to actually book your reservations. Courses are occasionally canceled or rescheduled due to low enrollment. We determine whether a course has enough participants 16 days prior to the course date. If we cancel or reschedule, we will email the participant and his or her billing contact no later than 14 days before the original class date.
The course coordinator will contact you with parking information. Handicapped parking is free at the meters around the downtown area.
Vending machines with Coca-Cola products and various snack items are available. There is also a refrigerator and microwave in our coffee bar area. Feel free to bring in your own drinks and food if you prefer.
You might want to bring a light sweater or jacket, as room temperatures vary.
To see answers to our Frequently Asked Questions, visit http://www.sao.texas.gov/training/faq.html.