Audit Process

Audit Process (Yellow Book Standards)

The Internal Audit Office conducts its work in accordance with the U.S. Government Accountability Office’s Generally Accepted Government Auditing Standards (GAGAS), commonly known as the Yellow Book. These standards require that audits be performed with independence, objectivity and professional judgment to provide credible, reliable results.

Each year, the Internal Audit Office develops an Annual Audit Plan through a citywide risk assessment to identify the highest-risk areas and the greatest opportunities for improvement. Audit topics are chosen based on their potential to strengthen internal controls, improve efficiency, reduce costs, enhance revenues and safeguard public resources. Additional audit areas may also be initiated at the request of city leadership or in response to emerging issues.

At the beginning of each audit engagement, the audit team meets with management to discuss the scope, objectives, methodology and timing of the work. Fieldwork is then conducted, during which auditors gather sufficient, appropriate evidence through testing, analysis, interviews and the review of documentation. All work is documented and reviewed to ensure compliance with GAGAS requirements for quality, evidence and supervisory oversight.

Upon completion of fieldwork, findings and recommendations are developed, reviewed with management, and issued in a written audit report. Reports clearly state the criteria, condition, cause, effect and recommendations to help management strengthen operations.

In addition to planned audits, the Internal Audit Office conducts surprise cash counts and performs fraud, waste and abuse investigations when warranted. All work is carried out with the goal of promoting accountability, transparency and stewardship of taxpayer resources.