Framework for Developing Internal Specialist Guides

Guides

Guides are developed by internal specialists to help auditors do their jobs. They provide information to auditors on topic areas (serving as reference material) as well as information on how to audit those specific topic areas (as part of audit methodology).

Audit standards and OAG policy require the following:

  • The team collectively has the appropriate competence and capabilities to conduct the audit (section 3061 of annual audit [AA] and direct engagement [DE] manuals).

  • Proper consultation is undertaken, per the requirements of the Office’s System of Quality Control, to promote quality and improve the application of professional judgment, as well as reduce the risk of error (sections 1012 and 3081 of the AA and the DE manuals).

  • For direct engagements, the audit team acquires up-to-date knowledge of the subject matter of the audit, including associated risks (section 4010 of DE manual).

  • For financial audits, the audit team obtains an understanding of the entity and its environment, including the entity’s internal control, and it identifies and assesses risks of material misstatement (section 5000 of AA manual).

Guides are used by practitioners as tools to complement consultation with internal specialists. They support the development of team knowledge and understanding of subject areas and inform the assessment of risks and the development of audit strategy.

Purpose of this framework

Given the audit methodology content of guides, this framework was developed to

  • ensure compliance with standards and Office policies;
  • ensure appropriate oversight and due diligence; and
  • clarify the process, roles, and responsibilities for their development and publication.

Audit methodology is the body of methods, rules, and procedures used to audit. It is the policies, guidance, procedures, templates, and checklists that define how we perform our audits and other assurance engagements in order to form appropriate conclusions. The development and dissemination of audit methodology requires appropriate control and oversight because this information forms part of the reference material used by practitioners and audit teams in conducting audits and forming appropriate audit conclusions.

Application and ownership of this framework

Application
This framework is applicable to internal specialist guides developed for all product lines.

Ownership
Audit Services (AS) is the owner of this framework and is responsible for communicating the framework to internal specialists.

Steps in developing guides

  1. Establish the need and purpose of the guide.
  2. Develop the content.
  3. Execute due diligence and consultation (throughout).
  4. Seek approval and publish.
  5. Communicate and train.
  6. Ensure sustainability.

Summary of key roles

Internal specialists provide audit teams with expert advice. For guides, internal specialists own the content and are responsible for ensuring the information is kept current and relevant. In particular, they are responsible for

  • managing the guide development process (by following this framework) and developing the substantive content;

  • confirming the relevance and purpose of the guide and getting approval for development;

  • planning and conducting appropriate due diligence and consultation;

  • ensuring that duplication and conflicting guidance is avoided;

  • developing the communication and training strategies for guide content;

  • completing the guide for publication after content approval (ensuring final review, edit and translation, and hand-off to AS for publication);

  • supporting the implementation by AS of the communication strategy;

  • implementing the training strategy, with assistance of Professional Development; and

  • maintaining the content of the guides, including reviewing the material (including the training material) annually and coordinating needed updates with AS to complement and correspond with the annual methodology update, to the extent possible.

Audit Services (AS) oversees and maintains the Office’s methodology and has authority for and is accountable for all audit methodology and guidance, including integration of the methodology into existing training. Professional Development, within AS, provides leadership for the design, development, and implementation of training solutions.

AS is responsible for

  • advising on and approving need and purpose of guide (see step 1);

  • ensuring content is consistent with audit standards, Office methodology, and Office policy;

  • identifying and coordinating broader methodology implications of the guide (such as links to and impacts on the audit working paper software, other templates, manuals, training content, and other related Office initiatives);

  • providing advice on consultation strategy and oversight to ensure appropriate due diligence occurs;

  • advising on timing of its development (that is, integration where possible into the annual methodology development cycle; see step 6);

  • advising on the communication strategy;

  • approving the guide for publication;

  • implementing the communication strategy with support from internal specialists (such as posting and publication, notification to practitioners, and integration into existing training);

  • ensuring relevant methodology and training content is updated, where possible, within the annual methodology update and development cycle; and

  • advising and assisting with the training strategy development and implementation of the training strategy by the internal specialists (Professional Development within AS advises on suitable training solutions; leads the training design, advising on content development and coordinating delivery; and ensures coordination and consistency with existing training and learning opportunities).

Step 1: Establish need

Internal specialists, in consultation with AS, should confirm relevance and purpose of the guide. Key considerations at this time include the following:

  • What is its purpose? What need does it fulfill?

  • How does it complement audit standards and Office policies?

  • To what product lines will it be applicable?

  • What is its impact on existing methodology (manuals, audit working paper software, templates, other guidance, tools)? How does it fit and align with other methodology or Office initiatives?

  • What is the preliminary consultation and due diligence plan for its development? (See step 2.)

  • Who is the audience (such as internal OAG staff, National Professional Practices Group, and others, including external parties, such as legislative audit offices other than the OAG)? (See step 5.)

Decision point: approval for development*
Once the need for a guide and its purpose is defined by the internal specialists, the project should be brought for approval by

  • AS—Assistant Auditor General (AAG) (based on recommendation by relevant principals [PXs] of AS) regarding alignment with and impact on existing methodology); and

  • the operational AAG for the internal specialists regarding resource investment for its development.

Substantive content development should begin by the internal specialists after this approval.

*This process is subject to the outcome of the OAG project to redefine the governance structure and associated roles and responsibilities of various committees.

Step 2: Develop content

Internal specialists are responsible for developing the content of the guide. The following should be included:

  • Substantive content of the guide split, if possible, into reference material and audit methodology. Some sections of the guide to be considered include, for example (see Appendix A: Template for Internal Specialist Guides):

    • purpose
    • applicability and audience
    • approval date
    • background and reference material (concepts and context)
    • methodology related to assessing risks related to the topic
    • possible red flags and risk indicators
    • audit criteria, questions, testing approaches
    • sources of information (where auditors can find information and how they can get it)

  • A project plan for the development of the guide, including (see Appendix B: Template of a Project Plan for Developing a Guide):

    • timing of key events and milestones (alignment with the annual methodology development cycle should be considered where followed)

    • a due diligence and consultation plan for developing the guide

    • a strategy for communicating and training on the content of the guide

Internal specialists are encouraged to arrange to have a first draft reviewed by Editorial Services for organization, structure, and clarity.

Step 3: Due diligence and consultation

One element of the Office’s System of Quality Control is ensuring proper consultation (sections 1012 and 3081 of the AA and the DE manuals). Given the impact on methodology of guides, appropriate due diligence and consultation must be undertaken when they are developed.

The internal specialists are responsible for planning and conducting appropriate due diligence and consultation. AS is responsible for providing oversight to ensure appropriate consultation occurs.

Who to consult for what
Who to consult will depend on the nature of the guide being developed. AS can provide advice on key stakeholders and the consultation strategy.

Stakeholders who should be considered for consultation include, for example:

  • AS—Methodology Team

  • AS—Professional Development on training strategy

  • AS—AAG for development approval as well as final publication approval

  • other internal specialists to avoid duplication and conflicts in guidance

  • practitioners and auditors to assess practicality and understandability of the content, training, and communication needs

  • other affected AAGs for impact on and consistency with the strategic vision and direction

  • Editorial and Translation services for timing of edit and translation services including resourcing impacts. Edit and translation should receive an early draft for organization, structure, and clarity.

  • Audit product consultative committees (Consultative Committees for Annual Audit, Performance Audit and Special Examinations.

When to consult
Consultation should happen throughout the process to develop the guide. Consultation starts with AS in determining the need of the guide prior to starting more in-depth development work. Consultation will be ongoing with AS (both Methodology and Professional Development) as the guide content and associated training is developed and maintained. (See step 6.)

Step 4: Approval and publication

Approval of content
The guide must be approved at two levels:

  • Internal specialists approve the subject matter.

  • AS approves the guide to ensure compliance with audit standards and Office policy and methodology as well as for appropriate communication and training strategies. This approval includes obtaining

    • agreement by relevant AS—PXs

    • recommendation from relevant product consultative committee (PAPMC, PAPOC, PAPOPC, AACC), if required*

    • Approval by AS—AAG

Publication
After approval, the internal specialists are responsible for completing the guide for publication, including

  • ensuring that editing and translation have been done,
  • doing a final review, and
  • handing off to AS for formal publication and communication.

Internal specialist guides will be published internally on the INTRAnet as links from the Internal Specialist page. Decisions regarding external publication will be considered on a case-by-case basis. (See discussion on communication in step 5.)

Step 5: Communication and training

Internal specialists, with advice from AS, will develop communication and training strategies for the guide. AS will be responsible for executing the communication strategy with support from the internal specialists (that is, posting and publication and notification to practitioners).

Internal specialists will be responsible for implementing the training strategy. Professional Development will lead the design and support the development and coordinated delivery of training solutions with the internal specialists.

Principles to guide the development of the communication and training strategies:

  • The strategies should align with the purpose of the guide and its intended audience. (Given the purpose of the guide, who needs to have this information? What need was it designed to fill?) Also consider any users external to the OAG (such as other legislative audit offices).

  • The communication and training strategies should clearly address if and how the guide information will be communicated outside the OAG. Decisions regarding external publication will be on a case-by-case basis.

  • There is preference for incorporating internal specialist guides into existing communication and training processes (such as audit manuals, annual methodology development cycle, and regular discussion and communication means managed by AS).

Step 6: Ensure sustainability

Internal specialists own the content of the guides and are responsible for ensuring the information is kept current and relevant.

The content of the guides should be reviewed annually at a minimum and timing should align with updates done as part of the annual methodology development cycle.

AS plays a role by facilitating the inclusion and update of guide content into the annual methodology update and development cycle. AS—AAG will consider new guides as part of work planning for the annual AS business plan.

As part of the annual methodology development cycle, AS does a scan at least annually to identify any needed updates to methodology. As part of the annual cycle, AS is also responsible for ensuring that the content of training courses is realigned or updated to align to any revisions, additions, or deletions to Office audit methodology.