International Journal of Auditing – July 2008
United States
Clean Opinions on GAO’s Performance and Financial Audit Peer Reviews
The U.S. Government Accountability Office’s (GAO) system of quality assurance got two votes of approval in June 2008. An international team of government auditors reviewed GAO’s performance audit work, and the accounting firm KPMG LLP reviewed GAO’s financial audit work.
Generally accepted governmental auditing standards issued by the U.S. Comptroller General require organizations conducting audits of federal government programs to undergo an independent external assessment, or peer review, of their quality assurance every 3 years. This is the second time GAO’s performance audit work has undergone a peer review; its financial audit and accounting work has undergone a peer review five times since 1995.
Both reviews found that the systems of quality assurance in effect for the year ending December 31, 2007, were suitably designed and operating effectively to provide GAO with reasonable assurance that it conformed with applicable professional standards.
The Office of the Auditor General of Canada headed the international team that conducted the peer review of GAO performance audits completed in 2007. Over the course of 7 months, the team visited GAO several times, reviewing documented policies and procedures related to applicable professional standards and documentation for a representative sample of 2007 audits. The team also interviewed professional and administrative staff and relied on the work of GAO’s own inspection team.
In its report, the team noted several best practices that other national audit offices may wish to consider. The team was particularly impressed that one of GAO’s units used its accumulated knowledge about Department of Defense weapon systems to develop a model to inform decisions about moving from planning to designing and acquiring systems. The peer review team also commended GAO’s use of structured approaches to collecting and synthesizing interview data. Several human capital practices were singled out, including the use of statements of independence; GAO’s college-level recruiting program; and the adjunct faculty program, which trains and certifies GAO instructors for GAO’s internal Learning Center.
The team offered a number of suggestions to continue to improve GAO’s performance audit work. Specifically, the team suggested that GAO provide more explicit criteria in its reviews, mandate the use of a data reliability tool, improve the organization and accessibility of audit documentation, and clarify its policy for obtaining and disclosing third-party comments on its audits. GAO will develop an action plan to address the report’s suggestions.
The peer review reports have been posted on the Internet at
www.gao.gov/about/review.html.
For additional information, contact GAO:
E-mail: spel@gao.gov
Web site: www.gao.gov