Loading...
HomeMy WebLinkAboutStaff Report 8917 CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR February 13, 2018 The Honorable City Council Palo Alto, California Triennial External Quality Control Review of the Office of the City Auditor BACKGROUND The Office of the City Auditor follows Government Auditing Standards, established by the Comptroller General of the United States. The standards provide a framework for conducting high quality audits with competence, integrity, objectivity, and independence. The Government Auditing Standards are mandated for use by federal audit agencies, but because they are written by government and for government, the standards are often adopted for use by state and local government audit offices. The Palo Alto Municipal Code requires the Office of the City Auditor to use the Government Auditing Standards. By using those standards, we are required to establish and maintain a system of internal quality control (i.e., policies and procedures) to ensure that our audits comply with the standards and to have an external quality control review, also known as a “peer review,” at least once every three years to assess our compliance with the standards. The attached letter and report contain the results of our most recent peer review. In November 2017, government audit professionals from the City and County of Denver, Colorado, and the City of Raleigh, North Carolina, came to our office to conduct our peer review. The peer review was coordinated through the Association of Local Government Auditors. Their review included reviewing our written policies and procedures, our internal monitoring procedures, the work we did to complete a sample of audit and nonaudit service engagements, and our compliance with continuing professional education requirements. The team found that our office fully complied with the Government Auditing Standards for the period April 15, 2014, through June 30, 2017. RECOMMENDATION The Office of the City Auditor recommends that the Policy and Services Committee review and recommend to the City Council acceptance of the Triennial External Quality Control Review of the Office of the City Auditor. Respectfully Submitted, Page 2 Harriet Richardson, City Auditor ATTACHMENTS:  Attachment A - External Quality Control Review (PDF) Department Head: Harriet Richardson, City Auditor Page 3 Attachment A Attachment A Attachment A Attachment A November 9, 2017  Ms. Sonia Montano Mr. D. Lamar Norwood  Audit Supervisor  Senior Internal Auditor  Office of the Auditor City of Raleigh, NC  City & County of Denver, CO  Dear Ms. Montano and Mr. Norwood,  Thank you for conducting the external quality control review of the City of Palo Alto’s Office of the City  Auditor, which the Government Auditing Standards require to be conducted every three years. We are  pleased with your opinion that the Office of the City Auditor’s internal quality control system was  suitably designed and operating effectively to provide reasonable assurance of compliance with the  Government Auditing Standards during the period April 15, 2014, through June 30, 2017.  We appreciate your thorough review, your comments about the areas in which our office excels, and  your suggestion to further enhance our operations. We are committed to continuously improving and  refining our audit processes and, as you noted, have already updated our Audit Policies and Procedures  Manual, as well as the Assessment of Audit Evidence section of our Preliminary Findings and  Recommendations template, to require audit staff to specifically document in their workpapers their  evaluation of the objectivity, credibility, and reliability of testimonial evidence when they are relying on  that evidence to support their audit findings and conclusions.  We would like to express our appreciation and thanks to the peer review team and the Association of  Local Government Auditors for their work and commitment to ensuring that government auditors,  through the peer review process, adhere to Government Auditing Standards. I will share your report  with the City Council and make it available to the public on our website.  Respectfully,  Harriet Richardson, CPA, CIA, CGAP, CRMA  City Auditor  Attachment A