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Office of the City Auditor
Overview of the Audit Process

An Overview of the Audit Process

For some, the prospect of being audited can bring on feelings of anxiety, if not dread. These feelings are often related to fear of the unknown. By describing the purpose of an audit, and answering some general questions about the process, our hope is to relieve any feelings of anxiety before they start. Please share this document with staff who will be assisting with the audit.

The mission of the City Auditor Department is to assist the City Council, City management, and City employees in the effective performance of their duties by providing them with an objective evaluation of City departments, systems and activities. We consider an audit to be successful if it results in management’s implementation of beneficial improvements to the City’s programs and activities.

Why was my area selected for audit?

The City Auditor prepares and submits an annual audit plan to the City Council. Areas are selected for audit based on potential for cost savings and service improvements, level of public and Council interest, evidence of problems, risk of loss or abuse, and availability of audit staff.

How will the audit process work?

An audit will generally proceed as follows:

1. Initial contact – Notice is given that an audit will be initiated. An introductory meeting is scheduled to introduce the audit staff, and coordinate the working relationship.

2. Information gathering – Through interviews, document reviews, and observations, the auditor will gain an understanding of the subject matter sufficient to clarify audit objectives and develop a work plan.

3. Fieldwork – The auditor will collect, test, and analyze sufficient information to satisfy audit objectives. Any items of concern are reviewed with the auditee as they are observed.

4. Reporting and Follow-up – Audit conclusions and recommendations are communicated in a draft report to management. Once the City Auditor and the department audited agree on the findings and corrective action plan, a final report is submitted to the City Manager and the Council. The City Auditor monitors the actions taken by management, and submits progress reports to the City Council.

How will know if there are issues I need to address?

Communication will occur throughout the audit. We will inform you of issues as they come to our attention. We do this for two reasons. First, we may have misunderstood an issue that you can easily clarify. Second, if there is a problem, corrective action can begin even before the audit is completed, a point that can be mentioned in our report.

Consider the audit an opportunity to utilize an available resource, rather than a burden on daily operations. Be positive. The attitudes of management have a direct impact on the success of the process. Make time for the auditors, and keep an open mind to new ideas and approaches. If everyone involved in the audit is committed to evaluating how the City operates and finding ways to incorporate improvements, good things will happen.

Since an audit is a team effort, are there some mutual expectations we can have about the working relationship?

You can expect the auditors to:

• Conduct themselves in a professional manner.
• Approach the assignment objectively.
• Keep management well informed during work on the assignment.
• Be open and accessible to discuss issues of concern.
• Be reasonably flexible in the scheduling of work, and to make an effort to minimize disruptions.
• Communicate the results of work in writing.

We expect that City employees who assist us will:

• Conduct themselves in a professional manner.
• View the process as an opportunity to improve.
• Communicate in an open and straightforward manner.
• Provide feedback to ensure accurate and relevant information is reported.
• Make time for the auditors, taking reporting deadlines into consideration.
• Provide open access to all relevant information and personnel.