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When ALGA was established in 1989, one of its first initiatives was to create a peer review program to enable its local government audit members to achieve compliance with Government Auditing Standards. Over the years, ALGA’s Quality Control Review Guide has been revised, program administration has been strengthened, and the number of organizations participating in peer reviews has grown.
Our peer review program continues to be a resource available to all local government audit organizations. But what if you worked for an audit function that operated within a state agency and you needed a peer review? The National State Auditors Association limits participation in its peer review program to each statewide audit office. This was the dilemma faced by members of the California Association of State Auditors (C.A.S.A.).
C.A.S.A. members were concerned about their inability to comply with the Yellow Book’s quality control review standard. Potentially significant consequences were identified, including the possible loss of federal funds, industry criticism, unfavorable lawsuit outcomes, and licensing board sanctions.
C.A.S.A. researched various peer review programs and found ALGA’s program to be the most suitable. ALGA’s program is based on the Yellow Book and provides flexibility for all types of audits and various sizes of audit shops.
C.A.S.A. contacted Doug Norman, ALGA Peer Review Committee Chair, and asked if C.A.S.A. members could participate in the ALGA peer review program. As a volunteer organization, ALGA was not in a position to expand its program to state agencies. However, Doug suggested that ALGA partner with C.A.S.A. and help C.A.S.A. develop its own peer review program patterned after ALGA’s.
C.A.S.A., established a peer review task force and, by early 2000, drafted its own peer review manual. To help get the program off to a good start, C.A.S.A. asked Doug and I to conduct a two-day peer review training session.
In March 2000, Doug and I flew to Sacramento and spent two days with twelve auditors from six different California state agencies. Mike Taylor, City Auditor of Stockton, CA, and an experienced ALGA peer reviewer, was also in attendance.
Doug and I attempted to cover in two days everything we knew about peer review. Of course, that was not possible. We did, however, present an overview of Government Auditing Standards, a comparison of ALGA’s and C.A.S.A.’s peer review programs, guidelines for organizing a peer review, handling the site-visit, interpreting and applying Yellow Book standards, and arriving at a conclusion regarding compliance with standards.
At the end of our presentation, we asked participants to split into groups of simulated peer review teams. Each team was asked to examine a peer review case study and come to a conclusion regarding the fictitious audit organization’s level of compliance with standards. The group presentations and ensuing discussions were enlightening. Overall, participants demonstrated a sound understanding of the principles we had discussed. Doug and I left Sacramento feeling we had successfully communicated the principles and practices of a ALGA/C.A.S.A. peer review. Two members of C.A.S.A. who participated in our training class subsequently served as team members on ALGA peer reviews, each in a different California city. In addition, ALGA has agreed to provide an experienced ALGA reviewer to serve as team leader on C.A.S.A.’s first peer review. We are confident C.A.S.A. is ready for its peer review program to begin.
Note: On June 10, 2001, Doug and I will be conducting a one-day peer review training session for ALGA members, as part of ALGA’s annual conference in Long Beach. Attendance will be limited, so please sign-up early.
Joanne Griggs is the City Auditor of Virginia Beach, VA and Northeast Region Coordinator of Peer Reviews |
Peer Review