Government auditors can apply Quick Response Audit (QRA) techniques to deliver timely analysis when conditions support a fast-paced review. By limiting objectives, working closely with clients, and applying professional judgment, auditors can provide valuable findings without sacrificing quality.
This lesson is a preview from Graduate School USA's Quick Response Auditing Course.
Conditions When Quick Response is Easiest
Responding quickly is easiest under the following conditions:
- Client or management requested engagement
- Known or suspected problems/opportunities
- Program, function, or activity with previous audit history
- Clearly defined deadline or target date for completion of engagement
- Strong support from the client or management for a quick response
Client may already know:
- Criteria
- Condition
- Effect
- Maybe Cause
Client may be seeking:
- Effect
- Cause
- Recommendations
The client presents the auditor with a potential finding; the client only wants confirmation.
Objectives Can Be Limited
Have precise objectives and audit those objectives and be prepared to report what you find (be it positive or negative).
Limit the objectives (for example):
- To one subject
- To one performance aspect
- To selected finding elements
You can also defer some objectives where incremental auditing is acceptable, limit the scope of audit coverage (but scope must be sufficient to satisfy objectives), and use streamlined reporting.
Why actions to limit audit work and streamline reporting are important
- The actions to limit audit work and streamline reporting are important
- Satisfying objectives is time-intensive
- Extensive scope is time-intensive
- An involved report writing and reviewing process is time-intensive
“An awareness of potential users’ interest…can help auditors judge whether possible findings could be significant to relevant users.” Par 8.37
Interface With the Client: A Key to Success
Audits must meet user/client needs or interests:
- Who is the client?
- Stakeholders to consider?
Work with the client to identify:
- The issue in which the client is interested
- What exactly the client wants to know about that issue
- What the client is going to do with the audit results
- Objectives translate user needs into audit language
- Scope of audit coverage
- Methodology
- Report Type (e.g., briefing)
Time Is of the Essence
- Dynamic change demands real-time answers
- Clients need quick solutions to save resources
- Client should convey the desired report date
- Auditor should meet the date if possible
Auditor has Program Knowledge
- Familiarity with programs facilitates “quick start”
- Auditor understands data systems/evidence sources
- Existing working relationships with the client
Auditors should obtain an understanding of the … potential use that will be made of the audit results or report as they plan a performance audit. Par 8.36
Exercise Caution:
- Fraud is suspected
- Suspected violation of:
- Statutes
- Regulations
- Policies
- Contract or grant terms
- Potential adverse action against personnel
- Potentially sensitive or embarrassing for the agency
- The client is not flexible
Auditors should assess risks of fraud occurring that is significant within the context of the audit objectives. Par 8.71
Avoid QRA:
- Client insists on multiple objectives or an extensive scope
- Client seeks documentation for adverse actions
- There is strong resistance by activity personnel
- Auditor’s professional judgment suggest otherwise
How Can You Use QRA Concepts?
- To offer a new line of audits to your clients
- To respond quickly to selected engagements
- To broaden your understanding of appropriate nonaudit services
“The audit department must continually rethink its audits to find the approaches that add the most value.” Anthony P. Waltz, CPA, CIA
