Annual Audit Plan FY 2017-2018 - Laserfiche WebLink

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Overview of the Annual Audit Plan The Office of the Legislative Auditor utilizes professional standards and guidelines developed by the Institute of Internal Auditors for the Audit Plan Risk development of the annual audit plan. These guidelines recognize Assessment Criteria that an annual audit plan and work schedule benefit the organization by: Using a risk-based audit approach 0 Establishing which agencies, programs, contracts, or other to identify and prioritize potential areas will be prioritized for audits on an annual basis audit topics that pose the greatest potential risk and liability to the 0Permitting an efficient allocation of limited audit resources County, The Office of the 0 Providing a flexible basis for managing audit personnel Legislative Auditor considers the following risk factors: 0Projecting an estimated timetable for initiating and • Quality of Known Internal completing audits for the year • Size of Department or Operational Area Eliminating the potential for overlapping audits within the Division and with other audit organizations • Compliance and Regulations • Providing an identifiable basis for the role of the Office and • Public Sensitivity justification for obtaining budgetary funds • Complexity of Transactions • Management Accountability • Quality of Known Internal Preparing the Annual Audit Plan Control System • Age of Program or Operation Audits included in the annual audit plan are selected and prioritized • Audit History using a risk-based approach. Risk assessment is a process used to identify and prioritize audits based upon specific risk factors related • Public Health and Safety to the quality of internal controls and the estimated potential liability • Critical Infrastructure and level of risk exposure to the County of Hawai'i related to • Emerging Risk Areas various County departments, programs, activities, and contracts. The OLA utilizes several techniques to identify and prioritize audits • Inherent Risk Areas in the annual plan. These techniques include: • Departmental Requests • Analysis of operations and internal controls derived from previous internal audits formal audit follow-up • Assessment of operations and controls derived from previous external audits including information in the County's Comprehensive Annual Financial Reports (CAFRs) and Single Audit Reports • Input from elected officials, operational management, peer audit groups, and members of the public • Benchmarking against the audit priorities of other governmental entities • Consideration of current local events, financial conditions, and public policy issues County of Hawaii, Office of the Legislative Auditor 12