A Strategic Vision for
Smaller, More Focused
Performance Audits
Colorado
Office of the
State Auditor
Introductory Comments
Monica Bowers, Deputy State Auditor
2
Strategic Planning Process
• Audit Process Changes
• Budget and Calendar Issues
Colorado Office of the State Auditor
We set the standard for good government.
3
Audit Process Changes
Sarah Aurich, Legislative Audit Manager
4
Audit Process Changes
Goal: Achieve smaller, more focused
performance audits.
Solution: Changes in key areas of the audit
process.
– Planning and scope development
– Fieldwork
Colorado Office of the State Auditor
We set the standard for good government.
5
Planning and Scope Development
Action: Identify “core” audit questions quickly.
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Meet with the audit requestor
Define objectives early on
Split large audits into smaller series of reports
FOCUSS brainstorming meeting
Result: Shorter and more focused planning and
scope development phase.
Colorado Office of the State Auditor
We set the standard for good government.
6
Meet with Audit Requestor
Requested Audit: An audit that is requested by
someone outside of the State Auditor’s Office
(e.g., legislators).
• Understand the request
• Understand the desired outcome and
timeline (if applicable)
• Determine if what is requested meets
standards for an audit.
Colorado Office of the State Auditor
We set the standard for good government.
7
Define Objectives Early On
• Make decisions early about the audit
objectives.
• Make decisions about audit objectives without
having nailed down 100% of the details.
• Understand that objectives can be revised as
you go along if additional information surfaces
during the audit process.
Colorado Office of the State Auditor
We set the standard for good government.
8
Split Large Projects into a Series
Large audits covering multiple aspects of
agencies or programs can be
overwhelming/difficult to manage.
Examples:
• Mental Health
• Regional Transportation District
• America Recovery and Reinvestment Act
Colorado Office of the State Auditor
We set the standard for good government.
9
FOCUSS Process
Focus on the Concerns and Understand the Scope
Statement
• Limit time spent in scope/planning phase
• Leverage existing expertise
• Focus on audit objectives based on risk
KEY TO RESULTS: Come to the FOCUSS session ready to
make decisions and realize that the audit scope can be
adjusted in the future based on any new information
discovered.
Colorado Office of the State Auditor
We set the standard for good government.
10
Fieldwork
Action: Ongoing evaluation and assessment to discuss
the results of fieldwork and revisit the scope, work
plan, and budget.
– Team brainstorming meetings
– Meetings with senior management at key points during audit process.
– Other mechanisms (e.g., audit topic suggestions, referrals, revise
scope and budget)
Result: Ensure audit is staying on schedule and
remaining within scope.
Result: Complete projects on time and within budget.
Colorado Office of the State Auditor
We set the standard for good government.
11
Budget and Calendar Issues
Jenny Page, Legislative Audit Manager
12
Budget and Calendar
Goals
1. Scopes ≤ 2,500 hours
2. Audits ≤ 9 months
3. Meet budget 80% of the time
Colorado Office of the State Auditor
We set the standard for good government.
13
Criteria for Success
• 2,500 hour goal
• % of audits with approved scopes of 2,500
hours or less.
CY 2009 Result: 69% had budgets of ≤ 2,500 hours.
CY 2010 Result: 67% had budgets of ≤ 2,500 hours.
• % of audits completed within 2,500 hours.
CY 2009 Result: 44% were completed within 2,500 hours
CY 2010 Result: 83% were completed within 2,500 hours
Colorado Office of the State Auditor
We set the standard for good government.
14
Criteria for Success
• 9 month goal
• Set consistent begin and end dates
CY 2009 Result: Average of 9.7 months
CY 2010 Result: Average of 9.4 months
Colorado Office of the State Auditor
We set the standard for good government.
15
Criteria for Success
• 80% target goal
• Based on approved budget
CY 2009 Result: 31% of performance audits were
completed within budget.
CY 2010 Result: 67% of performance audits were
completed within budget.
Colorado Office of the State Auditor
We set the standard for good government.
16
QUESTIONS?
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