Audit Services
The Office of the City Auditor provides the following types of services for City agencies, programs and functions.
Periodically, the Office of the City Auditor conducts audits of the financial statements of a City agency, program or commission. Financial audits determine whether:
- The financial statements of an entity present fairly the financial position, results of operations and cash flows of the entity.
- The entity complies with laws and regulations for those transactions and events that may have a material effect on the entity's financial statements.
In an attestation engagement, auditors issue an examination, review or agreed-upon procedures report on a subject matter (or an assertion about a subject matter) that is the responsibility of another party. Attestation engagements can cover a broad range of financial or non-financial objectives and can be part of an audit or a separate engagement.
In an examination, auditors perform sufficient testing to express an opinion on whether:
- The subject matter is based on (or in conformity with) the criteria in all material respects, or
- The assertion is presented (or fairly stated) in all material respects based on the criteria.
In a review, auditors perform sufficient testing to express a conclusion about whether:
- Any information came to the auditors' attention (on the basis of the work performed) that indicates the subject matter is not based on (or in conformity with) the criteria, or
- The assertion is not presented (or fairly stated) in all material respects based on the criteria.
Under agreed-upon procedures, auditors perform testing to issue a report of findings based on specific procedures performed on the subject matter.
Performance audits are intended to assess the quality of performance by City agencies in carrying out their assigned responsibilities. The scope of the audit may include the entire agency or some portion thereof, such as a specific program or function. There are two types of performance audits: economy and efficiency audits and program audits.
The objectives of economy and efficiency audits are to determine:
- Whether the entity is acquiring, protecting and using its resources economically and effectively.
- Why any inefficiencies and/or uneconomical practices exist within the entity, if applicable.
- Whether the entity complies with laws and regulations concerning matters of economy and efficiency.
"Program audits" include determining:
- The extent to which desired results or benefits established by the Council or other legislative body are being achieved.
- The effectiveness of organizations, programs, activities or functions.
"Investigative assistance" includes performing the extended procedures necessary to determine the occurrence and extent of fraud. This type of project includes gathering sufficient evidence about specific details of a suspected fraud, such as:
- Assessing the probable level and extent of complicity within the organization.
- Determining the knowledge, skills and disciplines necessary to carry out the investigation effectively.
- Designing procedural methodology to identify perpetrators, the extent of the fraud, techniques used and the cause of the fraud.
- Coordinating activities with management, legal counsel, law enforcement and others, as appropriate, throughout the investigation.
- Being aware of the rights of all the alleged perpetrators and personnel within the scope of the investigation and the reputation of the organization itself.
"Advisory services" include participation on committees or task forces in a purely advisory capacity to advise management on issues related to the knowledge and skills of the City Auditor's staff.
"Departmental assistance" includes routine advice and/or assistance of a limited nature.
"Special projects" include internal and/or administrative projects that enhance the quality and performance of our operations.
Audit work answers various questions, including (but not limited to) the following:
- Are City programs being carried out in compliance with applicable laws and regulations?
- Do opportunities exist for departments to operate more efficiently and economically?
- Are funds being spent legally, and is accounting accurate?
- Are programs achieving desired results?
- Are there ways to improve the quality of service without increasing costs?
- Are there any emerging or key issues that need consideration?