Annual Audit Plan FY 2019-2020 - Laserfiche WebLink

Home

What is a performance audit? • Assessment of operations and controls derived from previous external Audit Plan Risk A performance audit typically examines the effectiveness, economy, or accordance with Generally efficiency of a government program. They can include analyzing the services of Assessment Criteria an entire department or activity, identifying possible cost savings, identifying Standards promulgated by the the outcomes achieved by a program, or comparing actual department Using arisk-based audit practices against the practices called for in law or policy. Types of questions approach to identify and we may attempt to answer include: prioritize potential audit topics issues that pose the greatest potential • Is this program accomplishing its goals and objectives? (Are there risk and liability to the County, other ways to achieve this goal?) (Is this goal still relevant?) (How do The Office of the Legislative other counties achieve this goal or fulfill this need?) Auditor considers the following • How well does the program do what it is intended to do? (How risk factors: many are served?) (What does it cost per unit?) (How does the County of Hawaii compare to other counties in this regard?) 0 Size of Department or • Is this program complying with all applicable laws and Operational Area regulations? (Does the program meet all federal grant requirements?) 0 Compliance and (Is the program fulfilling any obligations mandated by state or county Regulations law?) • Public Sensitivity Performance audits have a broader focus on the organization than more • Complexity of Transactions traditional financial audits. Financial audits are conducted to provide an opinion about whether an entity's financial statements are fairly presented and in 0Management conformity with generally accepted accounting principles. Financial audits do Accountability not focus on an entity's performance per se, but rather whether it has taken 0 Quality of Known Internal appropriate actions to control and safeguard its finances and accurately report Control System on its financial conditions. 0 Age of Program or Operation Our objective is to improve public services. We do this by recommending specific actions that will address the issues we raise, and by providing valuable Audit History information to the public, program leadership, the Mayor, and the County 0 Public Health and Safety Council. 0 Critical Infrastructure Preparing the Annual Audit Plan 0 Emerging Risk Areas • Inherent Risk Areas Audits included in the annual audit plan are selected and prioritized using arisk- Departmental Requests based approach. Risk assessment is a process used to identify and prioritize audits based upon specific risk factors related to the quality of internal controls and the estimated potential liability and level of risk exposure to the County of Adherence to Hawaii related to various County departments, programs, activities, and contracts. The OLA utilizes several techniques to identify and prioritize audits in Government the annual plan. These techniques include: Auditing Standards Analysis of operations and internal controls derived from previous audits • Assessment of operations and controls derived from previous external We conduct all audits in audits including information in the County's Comprehensive Annual accordance with Generally Financial Reports (CAFRs) and Single Audit Reports Accepted Government Auditing • Input from elected officials, operational management, peer audit groups, Standards promulgated by the and members of the public United States Comptroller • Benchmarking against the audit priorities of other governmental entities General. • Consideration of current local events, financial conditions, and public policy issues MWMELM County of Hawaii, Office of the Legislative Auditor P a g e 11