Improving the Effectiveness and Efficiency of Governmental Audit by liuqingyan


									   Improving the
 Effectiveness and
    Efficiency of
Governmental Audit
   What Do We Have in Common with
       Private Sector Auditors?

• We may be members of the same professional organizations
• We must obtain CPE to maintain our licensure
• Our objectives are often similar, and we often perform the same
  types of services
• We must all comply with professional standards
• We generally want the same things
   –   To be respected
   –   To be good at what we do
   –   To advance in our careers
   –   To make more money
• We all make mistakes, and we need to learn from those mistakes
        Characteristics of Successful
          Public Accounting Firms

•   Rigorous hiring process
•   Attentive to employee needs
•   Emphasis on professional development
•   Focused on effectiveness and efficiency
•   Excellent performance management systems
•   Forward-looking, anticipate market conditions
•   Decisive
      The Basic Thought Process
             Find the right people

 Give them the tools they need to do their job

Address their basic needs and provide incentives
            to perform at a high level

        Obvious Challenges in the
       Governmental Environment
• Limitations on resources
  – Inability to provide public practice level
    compensation (perceived as an inability to hire
    and retain good people)
  – Less funding available for equipment, software,
• Bureaucracy (vertical vs. horizontal structure)
• Perception of the government and
  government employees
    Addressing Limitations on Resources
•   Marketing (work/life balance, public service)
•   “Time the (job) market”
•   Consider alternative benefits
•   Find other ways to value employees
•   “Trim the fat”
•   Don’t accept that all retention issues are
    related to compensation
 Addressing Limitations on Resources
• Excellent training can be provided without
  spending additional resources
  – On-the-job training is the most important type of
    training, and is often overlooked
  – In-house training can be very effective
     •   Slow periods can be used more effectively
     •   Participants receive CPE, presenters receive additional CPE
     •   Presenters improve their skills
     •   Training can address specific training needs
     •   Promotes teamwork
  – External training can be better focused
     Addressing Bureaucracy and
    Perceptions of the Government

• Don’t change the structure of your
  organization to match the skills of current
• Work to improve effectiveness and efficiency
• Address performance problems
• Address negative comments made by your
   Challenges in the Governmental
Environment that We Don’t Recognize

• Promoting Professional Development
  – Establishing goals and actively monitoring
    progress toward them
  – Providing on-the-job training and proper
  – Providing other training
   Challenges in the Governmental
Environment that We Don’t Recognize
• Focusing on Effectiveness and Efficiency
   – Structuring engagements to match the objectives
   – Scheduling
   – Forming teams
   – Designing procedures to address risks
   – Gaining a good understanding of processes and internal controls
   – Increasing the involvement of staff
   – Motivating staff
   – Involving management in engagements
   – Providing regular feedback and meaningful performance
   – Sharing information
   Challenges in the Governmental
Environment that We Don’t Recognize

• Addressing Poor Performance
  – Establishing the means to identify it
  – Assessing the cause of poor performance
  – Taking the appropriate follow-up action
 How Can I Improve Effectiveness and
 Efficiency in My Audit Organization?
• Obstacles
  – Many changes may require the cooperation of
    other departments, approval of supervisors or
    buy-in from subordinates
  – People tend to resist change (especially if it means
    more work)
  – Making changes to improve effectiveness and
    efficiency will be a lot of work for me
• Solution
  – Do the best you can
 How Can I Improve Effectiveness and
 Efficiency in My Audit Organization?
• Set an example by improving your own
  effectiveness and efficiency
  – Improve your communication with others
  – Set goals for yourself and track your progress against
  – Seek high quality training that relates to your job
  – Make changes to improve organizational effectiveness
    and efficiency that primarily involve your effort
• Let what you’ve done be seen by others

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