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Are you ready for an audit?
Tim Kirby, Sydney
Are you ready for an audit?
This presentation introduces ideas you could use to get ready for an NRM audit.
Why should you get ready for an audit?
Aren’t the auditors supposed to do all the work? And isn’t it cheating?
Why should you get ready for an audit?
It is not cheating, and you have a lot at stake.
If you are going to be audited, then it is important for you to be prepared, because :
external NRM audit can be the best tool for you to identify key strategic gaps
NRM audits are an important element of how your external investors retain confidence in you
there is a connection between how government NRM investment is shared between entities
Exploding a few myths
The first step in getting ready is for us to explode a few myths about auditing.
This is important because your staff and colleagues will hold many of these misconceptions.
If they are not discussed, a ‘wrong’ audit result might mean benefits of an audit are lost, time is wasted, and an incorrect picture of your organisation is broadcast.
Myth 1 - Interview
An audit interview is not like a job interview
Auditors use interviews to collect and verify information about the organisation or program.
If you are being interviewed, it is because you are best placed to provide or verify some information about the organisation or program.
You are not being assessed personally.
Myth 2 – Looking back
An auditor is looking at what has been done, not what you are going to do
Auditors have to use evidence of past performance, so discussion of plans for improvement will be of limited use as audit evidence.
This is a different perspective to how we normally work.
Myth 3 – Global view
An auditor is looking for the overall balanced picture of performance, so may not go into detail all that often
Auditors pull together all the information collected across a number of sources (including multiple interviews) to get the global view, so the more people present the whole-of-organisation context of performance the easier it will be for the auditor to build a strategic perspective.
This is also a different perspective to how we normally work.
Myth 4 – Report writing
An NRM performance audit report explains both what has been done, and how well it was done, which is different to a financial audit report.
Auditors will need to summarise how the CMA does an activity, what has been done, and then add their judgement of how well it has been done.
You can help the auditor with the first two, by providing documents, in electronic form.
Myth 5 – Time poor
An performance auditor will be satisfied with a lower level of evidence than in other kinds of audit.
Auditors work to a budget, and so can only do work that will allow them make a judgement on effectiveness.
Auditors also move on fairly quickly, so you have to provide information while they are in the office, or beforehand.
Why you need to prepare for an audit
1. Don’t think ‘job interview ‘– think ‘meeting’
2. Don’t talk about the future – talk about the past
3. Don’t forget your work is only part of the whole-of-CMA picture
4. Help the auditor to be able to write the report
5. Help the auditor to get what they need quickly
Contact details
Environmental Risk Science and Audit (ERSA) Tim Kirby, Sydney
Chartered Accountant (NZ), Certified Internal Auditor (IIA), Lead Environmental Auditor (RABQSA),
Masters of Environmental and Business Management (University of Newcastle), Bachelor of Commerce (University of Canterbury)
m: 0433 488 569 e: [email protected] or
