Hiring a performance auditor
ALGA developed an in-depth explanation of the elements to be considered in developing an audit function.
PART ONE
I. Introduction and Background
A. Performance Auditing Defined
B. The Origins of Performance Auditing
C. What Performance Auditing Measures
II. Performance Auditing Methods
A. Performance Auditing Standards
B. The Need for Adherence to Standards in Order to
Establish and Maintain Credibility
C. Survey, Fieldwork and Testing, and Reporting
D. Interviews with Management and Staff
E. Observation of Work Processes, Analysis of Data, Review of
Literature and Contact with Experts and Other Jurisdictions
F. Audit Reports to Management, Legislative Body and Citizens
III. Benefits of Performance Auditing
A. Improvement in Service Delivery
B. Cost Savings and Additional Revenue
C. Improved Accountability
PART TWO
I. Authority and Organizational Structure Alternatives
A. Obtaining Legal Authority
B. Elected vs. Appointed Auditor
C. Placement of the Performance Audit Unit within the Organization
II. Administrative Issues
A. Contracting for Services vs. In-house
B. Common Arguments Against Performance Auditing
C. Methods of Measuring the Performance of the Performance Audit Function
III. Skills Required for Performance Auditing
Qualifications of Performance Audit Staff and Supervisors
APPENDICES
A. Sample Legislative Authority (Proposed Charter) for Performance Auditing Function
B. Sample Organizational Alternatives
C. Lawrence Sawyer’s Ten Commandments of Internal Auditing
D. Resources Available to Assist in Development and Implementation
E. Sample Job Descriptions
F. Actual Examples of Improvements in Service Delivery, Cost Savings,
Additional Revenue Generated and Improved Accountability
G: Example of Actual Indicators used to measure the Performance of the Internal Audit Function
(Office of the City Auditor, Seattle, Washington)
The Role of Auditing in Public Sector Governance
This practice guide presents information on the importance of the public sector audit activity to effective governance and defines the key elements needed to maximize the value the public sector audit activity provides to all levels of government. Authored by the Association of Local Government Auditors together with the Institute of Internal Auditors.
Model Legislation
ALGA developed model legislation to assist local governments with a framework for either an appointed or an elected auditor.
Government Auditing Standards
The Government Auditing Standards published by the United States Government Accountability Office is available on their website.