Audit Process
Although every audit project is unique, the audit process is designed to produce meaningful audit reports with emphasis on ongoing communication with the departments being audited, public interest and transparency.
Audit Phases
An audit generally follows three phases.
Phase One: Planning
The first phase is the planning phase during which the auditor gains an understanding of the area to be audited and identifies associated risks and controls. This involves interviews and reviews of:
- related policies
- procedures
- laws
- ordinances
- other relevant documentation
From there, a risk assessment and testing steps are developed.
Phase Two: Fieldwork
The second phase is known as fieldwork, wherein auditors execute testing steps and perform analysis of data to acquire sufficient and appropriate evidence to support audit conclusions, findings and recommendations.
Auditors communicate findings to the applicable department as soon as they are identified. This keeps management informed of the audit progress and allows the audit team to work directly with management in developing quality recommendations.
Phase Three: Reporting
The final phase of the audit is the reporting phase, during which auditors prepare a draft audit report and review findings and recommendations with City management. The Department collaborates with City Executive Leadership to develop their management action plan, which addresses audit recommendations.
The City Auditor incorporates management's action plan into the draft audit report and the report is finalized. The final report is submitted to the Mayor, City Council, Audit Committee and appropriate City management. The audit report is then presented at Audit Committee and also posted on the City Auditor's website.
Follow-Up Audit
Once management action plans have been implemented, the Office of the City Auditor follows up to validate the plans were executed and are effectively mitigating the risks identified. The follow-up work is periodically presented at the audit committee.