Overview of the ALGA Peer Review Program October 2018 Prepared By The ALGA Peer Review Committee
Opening Remarks Moderator R. Kinney Poynter Executive Director NASACT Speaker Corrie Stokes City Auditor Austin (TX) Speaker Jim Williamson City Auditor Oklahoma City (OK) 2
Webinar Objectives Share information about ALGA s peer review program including: The workings of the ALGA Peer Review Program Available Peer Review materials Common issues that arise during ALGA Reviews
Audit standards require a periodic external review Standards Followed Yellow Book Red Book Both Yellow and Red Book Review Required Every three years Every five years Every three years
Peer Review evaluates organization s quality control system Is the quality control system suitably designed and operating effectively?
ALGA provides affordable, quality reviews for member organizations Peer Review History 1989 1990 1991 2005 2007 ALGA identifies need for member peer review program Peer Review Committee formed Peer Review Guide finalized and first reviews performed Peer Review Workshop offered at conference Develop guidance and begin Red and Orange reviews Goals: Meet new GAO standard Make it affordable Encourage knowledge sharing
ALGA provides affordable, quality reviews for member organizations 120 Growth of the ALGA Peer Review Program 100 80 60 40 20 0 1991-93 1994-97 1998-00 2001-03 2004-06 2007-09 2010-12 2013-15 2016-18 Note: CY 2018 is estimated
ALGA s Peer Review Committee manages the program Develops and updates guidance for peer review teams Coordinates member organization peer reviews Periodically assesses and updates the peer review program
ALGA Peer Review Committee Roles 7 coordinators: work with organizations requesting reviews to ensure readiness arrange volunteer peer review teams to conduct reviews 5 at-large members: assist coordinators develop and update guidance work on continuous improvement initiatives
Peer Review Responsibilities: Audit Organization Cover reasonable travel expenses for the review team Provide documentation to the team Make staff and records available to the team during the on-site review Provide reviewers for future review teams for other shops
Peer Review Responsibilities: Review Team Before the review: Reviews provided documentation and begins asking questions/assessing compliance Once on-site: Talks to organization staff and leadership Reviews engagement workpapers and other records Prepares report and shares for comment
Peer Review Logistics Organization requests review from ALGA Coordinator identifies review team Organization and Coordinator sign a review agreement ALGA Member Services makes travel arrangements and pays up front travel costs Review team conducts the review ALGA Member Services reimburses reviewers for out of pocket costs ALGA Member Services invoices reviewed organization for travel costs
Peer Review Guidance Assists Review Teams and Reviewed Organizations
Peer Review Guidance Assists Review Teams and Reviewed Organizations Team s Quality Control System Checklist Standard from GAGAS Organization s Description of How They Meet the Standard Team s Engagement Review Checklists Audit 2 Audit 1
Peer Review Guidance Assists Review Teams and Reviewed Organizations
Peer Review Feedback Surveys of the Reviewed Organization and Review Team are conducted at the conclusion of each review The Peer Review Committee uses survey results to identify areas for improvement and ensure the program works as intended
Peer Reviews Completed For January 2016 to August 2018, ALGA s Peer Review program resulted in: 95 ALGA Peer Reviews 82 Yellow Book Reviews 7 Red and Yellow Book Reviews (Orange) 6 Red Book Reviews
Peer Review Opinions For 2016 to 2018 (Aug) Yellow Book Opinions Pass 86 97% Pass with Deficiencies 3 3% Fail 0 0% 89 100% Red Book Opinion Conformance 14 100% Partial Conformance 0 0% Non Conformance 0 0% 14 100%
Top Areas Cited in Yellow Book Peer Reviews 1 Non-Audit Services 2 Monitoring of Quality 3 Overall Assessment of Evidence 4 Planning 5 Audit Documentation 6 Stating Compliance with GAGAS
Top Areas Cited in Red Book Peer Reviews 1 Engagement Planning 2 Communicating Results 3 Quality Assurance Program 4 Independence and Objectivity
Other Tips to be Review-Ready Use ALGA checklists when drafting policies and reviewing engagements Make sure cross-referencing is clear and timely Consider involving a reviewer not on the project, if feasible Maintain documentation (engagements, training records, etc)
Questions?
Questions and Answers Moderator R. Kinney Poynter Executive Director NASACT Speaker Corrie Stokes City Auditor Austin (TX) Speaker Jim Williamson City Auditor Oklahoma City (OK) 23