Government Relations Committee Education Session
April 23 & 24, 2013
“Performance And Value-For-Money (VFM) Auditing
From Canadian & American Perspectives”
This 2-day course instructs participants in how to develop and carry out a plan for conducting risk and measurement based performance/VFM audits. Proper planning and fieldwork are critical to achieving successful audit outcomes. Accordingly, this course assists participants by providing insight on how to identify key performance/VFM issues, develop measurement based audit objectives, align the objectives to appropriate methodologies, and analyze the evidence to support audit findings. Finally, the course provides best practice suggestions on writing performance/VFM reports and developing recommendations.
Stephen Morgan is currently the President of Excellence in Government Accountability and Performance Practices, EGAPP, Inc., a company that specializes in training government auditors and managers. He is the former City Auditor of Austin, Texas, responsible for directing performance audits, investigations and consulting engagements for the City of Austin.
Before becoming City Auditor in 2000, Stephen was Deputy City Auditor, Assistant City Auditor, and Performance Audit Manager. Before joining the City Auditor’s Office in 1985, Morgan was an auditor in the U.S. Government Accountability Office’s National Productivity Group and was responsible for auditing federal productivity programs from 1977 until 1984.
Throughout his career, Stephen has instructed, designed, and delivered courses on performance measurement, management, and auditing. For over 20 years he has served as a faculty member for the Graduate School and the Government Audit Training Institute in Washington, D.C. In this role, Mr. Morgan taught courses to government auditors in the United States and to Pacific Islands Public Auditors. He has also gained international experience from speaking at five IIA global conferences in Washington, D.C., Amsterdam, Houston, Johannesburg, and Kuala Lumpur.
He has also co-authored three textbooks: Performance Auditing: A Measurement Approach (first and second editions) and Auditor Roles in Government Performance Measurement: A Guide to Exemplary Practices at the Local, State, and Provincial Levels. He also co-authored a chapter entitled Public Sector Performance Auditing in Developing Countries in the 2007 World Bank publication Performance Accountability and Combating Corruption.
Stephen holds a bachelor’s degree in government from the University of Texas at Austin and a master’s in public administration from the Lyndon B. Johnson School of Public Affairs at the University of Texas. He graduated with honors and was elected to Phi Beta Kappa. He is a certified internal auditor, certified government auditing professional, certified government financial manager, and certified fraud examiner.
Ron is the Auditor General at the City of Oshawa. Since joining the City in 2006, he has established a risk-based internal audit program that has made significant improvements to safeguards over City assets and contributed over $4 million of savings from the implementation of recommendations from value-for-money audits and program reviews.
In 2011, Ron co-sponsored the introduction of a formal risk management program within the City which includes semi-annual reporting to Council on significant risks and reviews of all major risk management processes such as claims management and disaster recovery planning and emergency response planning.
Prior to joining the City, Ron worked at KPMG LLP in Toronto as a Senior Manager in their Advisory Services Practice providing risk assessments and internal audits primarily to public sector clients. Prior to that, he worked at the Toronto Transit Commission managing IT audits and operational audits. He also worked for several years within the Ontario Government as a Senior Internal Audit Consultant and Operational Review Analyst. Previously, he worked as an external auditor for several Chartered Accounting firms.
Since 2007, Ron has served the Toronto Chapter of the Institute of Internal Auditors as Chair of the Government Relations Committee which is responsible for identifying and responding to the training needs of Chapter members in the broader public sector. As Chair of the GRC, he has arranged for numerous specialized training sessions including Construction Law and Risk Management; Procurement Law and Risk Management; Performance Auditing; Internal Auditor’s Responsibilities for Detecting and Preventing Fraud, and many others.
Ron has presented training sessions on The Integration of Risk Management and Internal Audit and on Internal Audit’s Role in Enterprise Risk Management. He has also taught courses on Internal Audit’s Role in Corporate Governance as well as a IT auditing.
Ron is currently leading a research project on performance auditing practices within the largest Cities and Towns in Canada and the United States.
Upon completion of this course, participants will be able to:
¨ Distinguish performance/VFM audits from financial audits;
¨ Identify the types of performance/VFM audits based on performance expectations or risks within government programs;
¨ Understand the role of auditing in public sector governance;
¨ Understand and consider the steps in planning a performance/VFM audit;
¨ Understand how programs are selected for audit and how performance/VFM audit objectives are developed based on identified risks/vulnerabilities;
¨ Describe different data collection and analysis methodologies, and their applicability to specific objectives;
¨ Review performance auditing approaches for economy, efficiency and effectiveness;
¨ Review audit program development and components of audit fieldwork;
¨ Identify elements of audit findings including cause, condition, criteria and effect;
¨ Review evidence in terms or quality, quantity, and types;
¨ Review audit reports and report writing; and
¨ Review best practice suggestions for developing audit recommendations.
Detailed Course Outline
1. Concept and Purpose of Performance/VFM Audits
a. Overview of performance auditing process
b. Characteristics of performance audits
c. Role of auditing in public sector governance
d. Differences from financial audits
e. Selected standards for performance/VFM audits
f. Sources of audit guidelines
g. Interdisciplinary knowledge requirements for government auditing
h. Exercise – Challenges to performance auditing
2. Audit Plans
a. Performance auditing planning process
b. Audit selection
d. Estimating audit budgets
e. Selection and prioritization under constraints
f. Case study – Fleet Services Branch
3. Planning for Specific Audit Projects
a. Audit standards
b. Mapping programs
c. Overview of Input-Process-Output-Outcome approach
d. Definition of program
e. Program design and components
f. Government service delivery model
g. Steps in mapping a program
h. Exercise: Mapping a program within Fleet Services Branch
4. Establishing Audit Objectives and Scope
a. Defining/refining the audit objective
b. Develop audit scope
c. Government performance expectations model
d. Performance measurement
e. Performance measures
f. Well-developed audit objectives
g. Exercise – Developing audit objectives for Fleet Services Branch
5. Audit Methodology Using a Measurement-Based Approach
a. How to conduct a measurement-based performance audit
b. Program definition and performance expectations
c. Government expectations model
d. Analyzing program performance through performance measures
e. Sources of performance criteria
f. Exercise: Performance criteria within Fleet Services Branch
6. Developing Audit Methodology
a. Steps required to develop audit methodology
b. Qualitative methods of gathering evidence
c. Quantitative methods of gathering evidence
d. Methodology considerations
e. Exercise: Match objectives to methodologies
7. Selected Performance Audit Approaches
a. Auditing input economy
b. Auditing process efficiency
c. Auditing outcome effectiveness
8. Audit Program and Fieldwork
a. Developing the audit program
b. Exercise: Capital equipment replacement program of Fleet Services Branch
c. Conducting the fieldwork
d. Exercise: Audit fieldwork for the Fleet Services Branch Audit
9. Audit Findings and Evidence
a. Elements of audit findings
b. Audit guidelines
c. Audit criteria
d. Types of findings
e. Fieldwork standards
f. Types of evidence
g. Hierarchy of evidence
h. Exercise: Distinguish elements of a finding from case studies; identify different types of evidence
10. Audit Reporting and Best Practices
a. Reports and report writing
b. Presenting audit findings
c. Describing key relationships
d. Exercises: Various exercises to encourage selected best practice writing/editing practices
e. Report outline development
f. Developing conclusions
g. Developing recommendations
h. Exercise: Write a high impact recommendation
i. Follow-up and Follow-through
As space is limited, please pre-register by calling or emailing the IIA Toronto Chapter Office. Late registrations may not be accommodated due to space limitations. Substitutions are welcome.
To register online, please visit the event website:
The Ontario Heritage Building – Birbeck Room – 10 Adelaide Street East; Toronto
April 23 & 24 - 8:30 a.m. – 5:00 p.m.
Breakfast and lunch will be provided.
Members - $450.00 (Plus HST) / Non-Members - $650.00 (Plus HST)
Please Note: There is a cancellation policy in effect.
CPE: 17.0 credits