United States General Accounting Offke 

Office of Police 

August 1993 An Audit Quality 

Control System: 

Essential Elements 

Preface 

Government audits, evaluations, and investigations 

assess the efficiency, effectiveness, and 

accountability of govemment agencies and their 

programs. These assignments provide information, 

unbiased analysis, and recommendations that the 

organization’s customers and stakeholders use to 

make informed decisions. 

This guide is intended to reinforce the Government 

Auditing Standards on quality control; to provide 

helpful hints for use by federal, state, and local audit 

organizations in designing or improving their systems; 

and to ensure consistent quality products that can be 

relied on by the organizations’ customers and 

stakeholders. 

This guide describes the approaches presently being 

used by GAO. While the General Policies/Procedures 

Manual and the Communications Manual Drovide 

guidance on the various facets of doing air work, this 

guide pulls together in one place the essential 

elements of GAO’s quality control system. 

Today’s total quality management environment offers 

excellent opportunities to reassess and continue to 

improve the quality control system that helps to 

provide customers and stakeholders the service to 

which they are entitled. 

Key questions that should be considered in assessing 

an audit organization’s quality control systems 

effectiveness include the following. Are we: 

l Doing the right jobs? 

l Doing the jobs right? 

l Getting results? 

l Achieving consistent qua&? 

These questions are pertinent regardless of the audit 

organization’s role, mission, size, or constituency. A 

Page1 GAO/OK4.1.6 
Preface 

good system should also provide the audit 

organization with performance indicators and 

feedback from its customers, attesting to the 

consistency of quality work. 

Werner Grosshans 

Assistant Comptroller General 

for Policy 

Page 2 GAOfOP4.1,6 
Page 3 GAO/OP-4.1.6 
Contents 

Preface 

Chapter 1 

Overview 

6 

The Need for an Appropriate Quality System 6 

The Importance of Audit Quality 6 

Involvement of Top Management 7 

Communicating System Guidance 8 

Purpose of This Guide 8 

Key Questions 9 

Chapter 2 

Doing the Right Purpose 

Job 

What Are the Right Jobs? 

Key Factors in Planning 

The GAO Example 

12 

12 

12 

12 

18 

Chapter 3 

Doing the Job 

Right 

Purpose 

Job Design 

Job Staffing 

Effective Implementation 

Product Preparation 

19 

19 

19 

23 

23 

26 

Chapter 4 

Getting Results Purpose 

High-Quality Recommendations 

Chapter 5 

Demonstrating 

Consistent 

Quality 

Appendixes 

Cckmitment 

Monitoring and Followup Systems 

Special Attention to Key Recommendations 

Purpose 

Internal Quality Reviews 

Peer Review 

Appendix I: Listing of GAO’s Technical 

Guidance Publications (Gray Books) 

31 

31 

32 

34 

34 

34 

37 

40 

Page 4 GAO/OP-4.1.6 
Contents 

Appendix II: Doing the Right Job-The GAO 44 

Example 

Figure Figure 1.1 10 

Abbreviations 

AICPA 

CM Communications Manual 

GPPM General Policies/Procedures Manual 

IIA Institute of Internal Auditors 

NALGA National Association of Local 

NSAA 

OIGs 

PCIE 

American Institute of Certified Public 

Accountants 

Government Auditors 

National State Auditors Association 

Offices of the Inspector General 

President’s Council on Integrity and 

Efficiency 

Page 5 GAOlOP-4.1.6 
Chapter 1 

Overview 

The Need for an Government Auditing Standards require each 

Appropriate organization to have an appropriate quality system in 

place. The quality assurance system should provide 

Quality System reasonable assurance that the organization (1) is 

following applicable Government Auditing Standards 

and (2) has established and is following appropriate 

policies and procedures. 

The Government Auditing Standards quality control 

standard, the fourth general standard, states: 

“Audit organizations conducting government audits should have an 

appropriate quality control system in place and participate in an 

external quality control review program.” 

The Importance A highquality job greatly increases the probability 

of Audit1 Quality that audit results will be relied on and recommended 

improvements will be seriously considered and 

impIemented. The organization’s reputation for 

consistent high-quality work helps ensure that 

decisionmakers will more readily and more assuredly 

accept findings and implement recommendations. 

Reputations are built over tune by producing 

consistent, highquality work. A hard-earned 

reputation is on the line with each product. 

To maintain and continue to build excellence requires 

total commitment on the part of every member of the 

team and the organization. 

Challenges to findings and recommendations can be 

expected. As an organization increasingly deals with 

tougher and more sensitive issues, challenges to its 

work increase. 

‘This guide uses the word “audit” to include audits, evaluations, 

inspections, and investigations. It uses the words “auditor” or 

“stafp to include the range of skills and disciplines employed in 

such work. 

i 

Page 6 GKVOP-4.1.6 
Chapter 1 

Overview 

It is not unusual for various constituencies to believe 

that they would be better off if results could be 

disproved or called into serious question. A 

successful challenge demonstrating minor errors or 

inconsistencies may call into question the quality of 

work supporting the principal finding or 

recommendation, 

Regardless of the reason for the challenge, it can be 

successfully refuted by demonstrating that findings, 

conclusions, and recommendations are warranted 

and supported. 

An effective quality control system is the basis for 

ensuring that the results will meet customers’ needs 

time after time and withstand challenges directed at 

them. 

Involvement of The quality control system should be rooted in top 

Top Management management’s expectation of and insistence on 

quality and the principles, policies, and procedures by 

which it can be achieved and will be evaluated. 

For example, the following establishes basic goals 

and expectations that are a sound basis for GAO’s 

quality planning and performance: 

“We seek to achieve honest, efficient management and full 

accountability in government programs and operations. We serve 

the public interest by providing policymakers with accurate 

information, unbiased analysis, and objective recommendations on 

how best to use public resources in support of the security and 

well-being of the American people. 

“Commitment to quality is the single most important principle 

governing our work.” 

The Comptroller General and other top GAO 

managers participate in the early direction of work to 

Page 7 GAOIoP-4.1.6 
Chapter 1 

Overview 

be done and in major decisions at key points in 

assignment planning and performance. 

Communicating The quality control system should define principles, 

System Guidance policies, and procedures that will achieve the 

consistent quality of work that the organization 

expects. 

System guidance should establish what is expected at 

each phase of an assignment, leaving room for 

initiative and creativity on how it is done. 

It should be readily available to staff at all levels. For 

example, GAO maintains the General 

Policies/Procedures Manual (-and the 

Communications Manual (CMmve guidance on 

achieving audit quality. Eazhapter has a succinct 

policy summary, followed by procedures to be used in 

complying with the stated policies. 

In addition, GAO publishes more detailed guidance on 

technical subjects. Technical guidance publications 

are normally referred to as “Gray Books.” A list of 

these appears in appendix I. 

GAO’s guidance material is accessible either in hard 

copy or in electronic mode. 

Fbrpose of This An assignment can go wrong at any stage. It can be 

Guide ill-conceived, improperly directed, poorly planned, 

badly implemented, and its results can be 

ineffectively communicated. For a variety of reasons, 

it can fail to meet its customers’ needs. 

An appropriate quality control system identifies or 

flags those factors that could jeopardize the quality of 

an audit and establishes processes or procedures that 

promptly identify and correct problems before they 

Page 8 GAo/OP-4.1.6 
Chapter 1 

Overview 

occur. For example, faulty assignment design could 

be detected during referencing or in a report review 

stage, but that is far too late to deal effectively with 

the problem. At that point, little more can be done 

than to write around the problem, salvaging what is at 

best a bad situation. To be most effective and to 

reduce assignment cost, design flaws must be 

detected in the assignment planning phase or early in 

the data collection and analysis phase to allow for 

appropriate intervention and redirection. 

The purpose of thii guide is to provide helpful hints 

for use by federal, state, and local audit organizations 

in designing their systems to ensure consistent quality 

products that can be relied on by customers and 

stakeholders. 

It raises key questions that managers and staff should 

be able to answer at key stages of the assignment, 

Key Questions Figure 1.1 illustrates key questions that an 

appropriate quality control system should address 

and the remainder of thii guide’s chapters attempt to 

address these key questions. 

Page 9 GAO/OP-4.1.6 
Chapter 1 

Overview 

Fiaure 1 .l 

l Selecting those jobs that will make a 

contribution-doing the right job. Each job requires 

resources that could have been used on another job. 

Most audit organizations have “must do” jobs. They 

also have considerable latitude in using the rest of 

their resources to seek a balanced portfolio-based 

on needs, capability, and resources. In exercising that 

latitude, staff should be able to answer questions such 

as: Is the job selection a wise one? Does it respond 

appropriately to a request or to user needs? Does the 

Page 10 GAO/OP-4.1.6 
Chapter 1 

Overview 

job help build staff capability? Are the benefits of the 

job greater than could have been obtained if other 

work were done? How do you know? (See ch. 2.) 

l Ensuring the quality of each assignment-doing the 

job right. Doing a job right requires efficient use of 

resources and high effectiveness. Key questions 

include the following: Are assignment objectives clear 

and responsive to customer needs? Is the assignment 

scoped to meet objectives? Is the methodology 

appropriate? Is job planning adequate? Are staff 

motivated and well-supervised? Are assignment 

results effectively communicated? (See ch. 3.) 

. Accomplishing intended results. Audit work is 

performed for a wide variety of reasons-to 

accomplish a range of objectives. Most jobs seek 

results that improve the auditee’s operation. The right 

job done the right way provides the best opportunity 

to get desired results-the bottom line for the auditor 

and the audit organization. Were the results of our 

work used? Did we have a beneficial impact? Did we 

make the difference our work sought? If staff can 

answer those questions positively, they are providing 

the quality service that stakeholders can expect every 

time. (See ch. 4.) 

l Demonstrating consistent quality. Care is taken to 

build quality into job selection, planning, 

performance, reporting, and followup. Individual jobs 

are given a final quality check before they go out the 

door. But how well have all those policies, 

procedures, and processes actually worked? Are you 

satisfied that they were followed, fit together, and 

accomplished intended results? Can we satisfy peers 

that the organization’s work is of high quality, meeting 

applicable professional standards? (See ch. 5.) 

Page 11 GAcuOP-4.I.6 
Chapter 2 

Doing the Right Job 

Purpose To do the right job requires planning-long range and 

day to day. 

This chapter gives guidance for developing a planning 

system that should be in place to help an organization 

determine what jobs should be done immediately and 

what jobs should be done in the future. It should 

show how the mosaic fits together to achieve 

longer-range objectives. 

What Are the 

Right Jobs? 

There is no shortage of good jobs. But with limited 

resources, each job that is done prevents another 

from being done. Good jobs should give way to better 

ones. 

Audit organizations must meet many requirements+ 

Decisions must be made on what to do first and over 

time. Many factors influence those decisions. A good 

planning system can help ensure good choices. 

Key Factors in 

Planning 

While audit organizations share the need to plan, no 

single planning system likely meets the needs of each. 

But answering some key questions can help develop 

quality plans: 

l What are the interests and/or needs of the legislative 

(or other) body that the audit organization reports to? 

How effective are planning efforts in meeting 

longer-range legislative requirements and in 

addressing current issues as they arise? 

l How good is the framework within which plans are 

developed? Does the planning system provide a good 

basis for making choices within and among programs 

for which the organization has auditing 

responsibility? 

Page 12 GAOtOP-4.1.6 
Chapter 2 

Doing the Eiiht Job 

In all but the smallest audit organizations, work 

focuses on many governmental programs and 

subprograms and on a range of objectives to make 

audits better and cost less. Sorting this out within a 

framework makes cross-comparisons easier and helps 

to focus what should be done. 

. What is the planning horizon? How far does planning 

reach? A longer-range perspective helps in setting 

significant audit objectives or issues to be addressed 

that may be beyond the reach of individual 

assignments and are attainable only by a series of 

related jobs. 

l Within available resources, how are individual 

assignments selected to best meet multiyear 

objectives? Is there a vehicle for integrating “must do” 

jobs to help meet longer-range objectives? 

A Framework for 

Planning 

Responsibilities included in mission statements are 

broad; planning to meet them requires a sharper 

focus. Planning works best when it is focused within 

a framework Governmental programs or 

subprograms could provide that focus. Should each 

program or subprogram be a planning area within 

which economy, efficiency, effectiveness, 

accountability, and other objectives are sought? 

Should the framework encourage crosscutting 

issues? Does it permit work that evaluates 

management and accountability across programs to 

be arrayed and evaluated in relation to other planning 

objectives? 

The planning framework and areas it comprises could 

vary. However, the one selected should represent top 

management’s judgment of how best to address the 

areas of responsibility. 

Page 13 GAWOP-4.1.6 
Chapter 2 

Doing the Eight Job 

Once approved, planning areas will likely be the focus 

of work for a considerable period. While an approved 

plan is an achievement, it should not be viewed in 

concrete; instead, it should change when managers 

consider it necessary. 

Multiyear Plans A good framework provides planning focus-helping 

to determine the most productive jobs in a planning 

area-and getting the most out of “must do” jobs. 

Planning works best when it covers a period of years 

in which longer-range objectives can be sought. 

Individual assignments--with their own current 

accomplishments-can be planned as buiiding blocks 

to broader, more significant accompliihments. 

Key Steps 

The length of a multiyear planning cycle depends on 

the area that it covers, e.g., when programs are 

volatile, a shorter planning period is more 

appropriate. But even when the areas include volatiie 

programs, planning beyond a single year is beneficial. 

The objectives sought by assignment building blocks 

need time to develop. 

Key steps in multiyear planning include the following: 

l Understanding the Area-An Overview. To plan for an 

area, the planner should know a great deal about it. 

He or she should be able to answer questions such as: 

- What programs and subprograms does it include? 

What are their objectives? 

- What are the national goals to which the programs 

contribute? What is their contribution and how do 

they relate to those of other program contributors? 

- How are the programs viewed by the legislature, the 

agency, the public, and other stakeholders? 

Page 14 GAO/OP4.1.6 
Chapter 2 

Doing the Eight Job 

- What are the present and foreseeable issues? 

- What are the economic, technological, political, and 

social trends? 

- What is the dollar significance of the programs? 

What is the potential for savings? 

- What effect do the programs have on people? 

- Do potential problems of stewardship or 

accountability exist? 

. Setting Objectives. Analyzing the planning area, along 

lines suggested by the overview, will likely suggest a 

large number of worthy objectives-with the 

potential for significant accomplishments. Although 

the potential for accomplishment may seem virtually 

liiitless, available resources are not. A good 

multiyear plan can sort out alternative objectives and 

prioritize those that offer the greatest benefit given 

available resources. 

l Developing Strategy. How should each objective 

included in the multiyear plan-culled out from other 

possible objectives--be approached? What strategy 

should be employed? Will building blocks be used? 

What is the role of each? How do they relate to each 

other? Is there work that must be done? Can 

mandatory jobs be designed to help meet other 

planned objectives? 

The strategy provides a roadmap for assignment 

planning. It identifies principal building blocks to 

achieve longer-range objectives. 

l Providing a Basis for Measurement. How will you 

know when planned objectives are accomplished? 

Have significant results been identified and will 

progress be tracked and measured against them? 

Page 15 GAo/OP-4.1.6 
Chapter 2 

Doing the Right Job 

Does the plan clearly establish what will happen 

when objectives are reached? Are checkpoints built 

into the process to help correct the course when 

things are not going as planned? 

Cooperative 

Development 

Top Management 

Involvement 

Updating the Plans 

Responsibility for multiyear planning should be 

clearly defined. Getting the input of all who can make 

a contribution should also be unequivocal. The needs 

and interests of the legislature should be 

appropriately included. 

Does the plan have all the input needed to ensure that 

it has an organizationwide perspective? Is it based on 

a high level of subject matter knowledge and 

expertise? As appropriate, have legislative staff, 

agency officials, outside experts, stakeholders, think 

tanks, and interest groups contributed to the richness, 

vitality, and usefulness of the plan? 

Does the plan as developed represent the objective 

and independently derived judgment of the audit 

organization? Was that judgment enhanced by a 

comprehensive knowledge of issues and the factual 

basis for differing pointa of view that are seemingly 

inherent in connection with major national programs? 

Approved multiyear plans represent major 

organizational decisions about resource usage for an 

extended period. They set basic directions. 

Top management involvement is essential. This 

normally includes (1) providing guidance on plan 

development, (2) setting resource levels for each 

planning area after considering the needs of all 

planning areas, (3) reviewing plan proposals and 

approving them, and (4) evaluating progress and 

proposed updates. 

Effective plans provide the overall necessary 

direction for the audit team. However, as time passes, 

1 

Page 16 GAO/OP-4.1.6 
Chapter 2 

Doing the Right Job 

the plans should be reviewed. As part of this 

assessment, the progress and the overall contribution 

of the work should be examined. Any significant 

factors requiring changes to the plans or the overall 

strategy should be identified. If necessary, resources 

may be shifted. 

Shorter-Term 

Planning 

Individual assignments should logically flow from the 

multiyear plan and contribute to the mosaic structure. 

The shorter-term work plan identifies the specific 

assignments that the unit plans to perform and the 

resources they plan to use. 

Assignments that the organization decides to 

undertake should constitute a balanced portfolio, 

including jobs the organization must do, those it 

selects to meet established multiyear objectives, and 

those it sees as targets of opportunity. Targets of 

opportunity are jobs which were not included in the 

multiyear plan that offer immediate payoff. These 

assignments represent the organization’s judgment on 

the best use of available resources to meet the various 

objectives. 

In considering jobs, staff should ask questions such 

E.9: 

l Will the proposed job meet user needs? Does it fit into 

the organization’s priorities? Is it part of a 

longer-range plan? How does it contribute to the 

plan’s objectives? Why is this job the best choice? 

What benefits will it achieve? 

. Will expected benefits exceed likely costs? At this 

stage, knowledge about job costs and benefits will 

probably be limited. But with limited resources 

available, jobs that are most likely to achieve the 

greatest benefits should receive priority. 

Page 17 GAO/OP-4.1.6 
Chapter 2 

Doing the Right Job 

l How sensitive is the job? What is the climate in which 

its findings and recommendations will be judged? By 

and large, assignments are performed to meet 

particular user needs and to obtain results. Some 

matters, however, are so significant that they must be 

pursued regardless of unyielding opposition or great 

sensitivity, That kind of decision should be made 

before the job is begun. 

l Is the job “doable?” A job’s viability should be 

considered as the job is planned. 

If a job is not doable, it may be possible to modify its 

objectives and still realize significant, worthwhile 

results. But a job should not be initiated or kept alive 

with the hope that things will fall into place later. 

l Could another organization do the job? If there is a 

choice, an audit organization should do those jobs for 

which it is most clearly suited 

In larger audit organizations, work plans can help 

alert field offices to upcoming work. They help to 

communicate planned work throughout the 

organization, encouraging cooperation and avoiding 

duplication. 

The GAO 

Exa-nple 

GAO has broad audit, evaluation, and investigative 

authority covering federal agency operations, 

activities, and functions and those that are federally 

assisted. It also has legislatively defined responsibility 

to perform congressionally requested work. A high 

percentage of GAO’s work is done in response to 

specific requests of congressional committees and 

members. 

Appendix II illustrates GAO’s planning system. 

Page 18 GAO/OP-4.1.6 
Chapter 3 

Doing the Job Right 

system can help in 

l designing the job to meet significant objectives, 

l implementing the design effectively, and 

l preparing the product to obtain desired results. 

Job Design The reasons for the job-its objectives-and the way 

it will be done are set by job design. In large measure, 

the job’s success depends on the quality of the 

assignment’s design. While changes can and should be 

made when they are needed as work progresses, they 

may be avoided or at least minimized by quality plans. 

Setting Objectives Objectives are the questions or issues that the audit 

will address. Clearly defined objectives are a must. 

Without such clarity, the scoping, planning, and 

performing become more difficult, if not impossible. 

It is during the assignment design that objectives 

should be focused. 

If they are vague or excessively broad at the start of 

work, time and money can be wasted by 

inappropriate methodology, scope, and resultant 

redirections. 

A useful approach is to state assignment objectives as 

questions and subquestions. This approach 

. helps preclude the perception of prejudged outcomes, 

l fosters discipline and precision, 

. facilitates clarity, 

l helps focus data gathering activities, 

l helps establish underlying logic, 

. helps in segmenting work, 

6 guides design, and 

* helps structure the presentation of assignment 

results. 

Page 19 GAO/OP-4.1.6 
chapter 3 

Doing the Job Right 

Scoping Scoping an assignment normally involves matters 

such as the number of sites or field locations to be 

visited, time frames to be covered, and the type and 

depth of work needed to ensure that assignment 

objectives are accomplished and that all applicable 

audit standards are met. 

In establishing assignment scope, the team should 

consider questions such as: 

. What elements of a finding are required? Is disclosing 

a particular condition enough or is it necessary to 

establish cause and effect? Will it be necessary to 

evaluate the condition against criteria? 

l Wii assignment findings relate only to the cases 

reviewed or will it be necessary to generalize them to 

a larger universe? 

l What are the relevant sources of data? Who/what 

holds the data (people, data tapes, files)? Will the data 

be available? Are they likely to be reliable? 

l What kind of information will be required? For 

example, will a judgmental sample be acceptable, or 

will a statistically-projectable random sample be 

required? 

l When will work results be required? 

Determining scope may require tradeoffs. For 

example, a more narrow scope may result in a less 

powerful message. But it may be the best that can be 

done considering available resources and time. Is the 

more narrow scope acceptable? 

Establishing 

Methodology 

Designing a job requires selecting the methodologies 

to be used in collecting, verifying, and analyzing data, 

A wide variety of methodologies exist, and the choice 

can be critical. You cannot choose what you do not 

know about. Staff must learn what methodological 

tools are available. They must know what 

methodologies can be used for what purposes and the 

Page 20 GAO/OP-4.1.6 
Chapter 3 

Doing the Job Right 

strengths and wealmesses of each, They need to 

answer questions such as: 

l What kinds of comparisons are required? 

. Which methodology best meets assignment 

objectives? 

l How will data be analyzed? 

l Will the results that it produces be persuasive and 

meet applicable audit standards? 

9 Can it be done in the time available? 

. Does its application require expertise or skills that are 

not available to the audit team? Can they be obtained 

from elsewhere in the audit organization or through 

the use of outside consultants or experts? 

Testing Before the more time-intensive data collection and 

analysis phase of the job begins, testing of sample 

transactions of key systems to ensure that the 

systems work as designed should be performed. More 

extensive testing will generally be performed during 

implementation. 

Testing helps to establish the extent to which systems 

and data sources can be relied on to meet assignment 

objectives. 

Through testing, staff should be able to answer 

questions such as: 

l Is the system(s) working as intended? 

l Have agency self-evaluations disclosed system 

weaknesses that affect planned work? 

l To what extent can agency internal controls be relied 

on? 

. Is the agency complying with laws and regulations 

that affect assignment objectives? 

. If the work of others or computer-processed data is to 

be used, can it be relied on? 

Page 21 GAo/OP-Cl.8 
Chapter 3 

Doing the Job Right 

Staff should also pretest the reliability and validity of 

data collection instruments. Models to be used by the 

assignment design should be verified and validated by 

testing. 

Testing of data sources and methodologies helps to 

determine whether the planned design will be 

excessively costly or time-consuming to operate. 

Detailed Job The job plan makes the design operational. Points 

Planning that should be covered include the following: 

. Will the selected methodology used meet objectives? 

l Has the task analysis identifying the steps needed to 

accomplish objectives been done? 

l Has the source, the type of data to be collected, and 

the method of analysis been chosen? 

l Has the work been segmented? 

l Have individual responsibilities been assigned? 

l Does the work sequencing and established time 

frames meet customer needs? 

l Have key decision points and management progress 

assessments been established? 

n Have adequate supervision and monitoring been built 

into the plan? 

l Have applicable auditing standards been considered 

and are steps sufficient to address them? 

l Will the requester or auditee be kept apprised of 

progress through periodic briefings? 

l What type of auditee comments (oral or written) are 

most appropriate? 

l How will assignment results be communicated? 

An assignment plan should address these questions 

and will guide staff on what should be done at each 

stage as well as how it is to be done. 

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Chapter 3 

Doing the Job Eight 

Job Staffing Highly skilled and well-trained staff are essential to 

effective assignment performance. Staff should have 

the range of skills collectively needed to meet 

assignment objectives. Depending on objectives, this 

could include auditors, accountants, financial 

specialists, social science analysts, attorneys, and 

evaluators as well as experts in a wide range of 

disciplines (e.g., transportation specialists, engineers, 

natural resource managers, psychologists, 

economists, actuaries, physical and computer 

scientists, mathematicians, and statisticians). Few 

audit organizations will have staff with all these 

disciplines and expertise in house, but they should be 

available through contracting when needed for a 

particular assignment. 

Effective 

Implementation 

With the course set by the assignment design, the 

next step is for staff to do the work-to collect and 

analyze data The design was carefully developed and 

tested. It should work-but will it? Were there 

unforeseen problems? What effect do they have on 

assignment success? 

Do team members really understand what they need 

to do? Do they know why it is important? Are they 

motivated to do it right? 

Progress 

Monitoring-Course 

Correction 

Staff should follow the plan but not as if it is in 

concrete. Requesters’ or auditees’ needs should be 

kept in focus at all times. Team members should be 

alert for changing priorities-be proactive and not 

simply reactive. Assignment objectives should be 

renegotiated and the assignment plan changed when 

necessary to meet those needs. 

Highquality performance includes proper supervision 

and reassessments of the continued appropriateness 

of objectives and progress made to achieve them. 

Answers to these questions would serve the team 

Page 23 GAo/OP-4.1.6 
Chapter 3 

Doing the Job Right 

well: Is progress on schedule? Should the 

methodology be changed or should objectives be 

redefined in cooperation with the requester? Is the 

evidence being collected reliable, competent, and 

sufficient? Should the questions that are being asked 

be modified to better accomplish objectives? Do data 

access problems require special attention? 

Performance quality is a shared responsibility. Staff 

evaluate their own performance and progress on a 

day-to-day basis. The auditor-m-charge or 

evaluator-in-charge oversees the assignment and 

keeps abreast of progress and problems in meeting 

milestones. Problems should be revealed promptly to 

permit the team to address and resolve them. 

Scheduled progress assessments with the team by 

supervisors or managers who have assignment 

responsibility are helpful to keep assignments in 

focus and address problems that arise and could 

derail the plan. 

For example, such meetings could be scheduled at the 

following points: 

l At the start of the assignment. Agreement at that time 

helps define objectives and provides an 

understanding of the charge-what is to be 

accomplished? 

l When the assignment moves from design to 

implementation. Is there a reportable message? Has 

the assignment been well thought out and planned? 

Are the scope and methodology adequate to achieve 

assignment objectives and meet requesters’ or 

auditees’ needs? Is the assignment still worth the 

expected resource investment? Questions such as 

these should be answered before extensive resources 

are used to gather and analyze additional data 

l When enough work has been done to assess how well 

the plan is working and whether assignment 

objectives are being met. In GAO, this meeting is held 

Page 24 GAO/OP-4.1.6 
Chapter 3 

Doing the Job Right 

when one-third of the calendar days between the 

completion of job design and the estimated date for 

message agreement have elapsed. It reviews progress 

and determines whether modifications should be 

made in assignment scope, methodology, or 

resources. 

l When fieldwork has been completed. The 

assignment’s message should have been considered 

throughout the life of the assignment. It is developed 

early in the assignment but is constantly refined as 

additional evidence is gathered. A message 

conference promotes agreement on the message 

consistent with the evidence, the product type, 

timing, and format that best meets requester’s or 

auditee’s needs. 

Motivation and 

Supervision 

Job success is highly dependent on the team’s 

commitment-both collectively as a team and 

individually as a team member. Assignment design 

sets the course. Assignment progress reviews and 

plan modifications help stay the course. However, 

they do not guarantee desired results; they do not 

ensure that results will be achieved. 

Fundamental to quality performance is a motivated 

team which understands how their work relates to 

overall assignment objectives. Team members and 

supervisors should ask themselves questions such as: 

Am I enthused about the job? Do I respect other team 

members, am I willing to communicate, and am I 

prepared to listen to others’ views? Am I doing the 

segments that I am best qualified for? Did I, as 

supervisor, consider the staff’s interests and strengths 

in assigning tasks? Were task descriptions clear? Did I 

and team members ask questions when necessary for 

a complete understanding of expectations? 

Am I and team members demonstrating personal 

pride and professional care? Am I and others 

Page 26 GAO/OP-4.1.6 
Chapter 3 

Doing the Job Eight 

requesting help and asking questions when necessary 

and making suggestions where possible? 

Is the team’s supervisor getting firsthand knowledge 

of work being done-praising good performance and 

providing guidance when needed? Are team members 

receptive to guidance and counsel? Is the team’s 

supervisor objective and fair in appraising 

performance? Are team members receptive and 

open-minded? 

Product 

Preparation 

All the hard work and contributions of motivated staff 

during the design, data collection, and analysis phases 

culminate in the assignment’s product. The product is 

the part of the assignment that is perhaps most 

visible. It is the primary vehicle for obtaining desired 

results. 

Developing the product’s message is a continuing 

process. It begins with assignment initiation and 

should be modified as facts are gathered and 

analyzed. Tentative fmdings and conclusions should 

be tested against accumulated evidence and 

discussed with the auditee to get valuable input and 

to validate both correctness and completeness. Even 

recommendations should be discussed with the 

auditee to help ensure that they are doable and will 

achieve desired results. 

When all or most of the evidence is in, the team and 

managers should meet to reach agreement on the 

product’s message, timing, and format. This can be 

done formally in a message conference or more 

informally on simpler issues. The basic purpose of 

reaching such agreements is to get everyone’s buy-in 

and keep surprises to a minimum. Such action should 

also facilitate timely reporting. The team and 

managers directly responsible for the assignment 

Page 26 GAO/OP-4.1.6 
Chapter 3 

Doing the Job Right 

should be able to respond affirmatively to questions 

such as: 

9 Are the fmdings and recommendations based on 

competent, reliable, and sufficient evidence? 

. Are they responsive to assignment objectives? 

. Were all applicable auditing standards followed? 

. Is the message clear, coherent, and persuasive? 

. Can the recommendations be implemented? 

l Will they correct the situation identified? 

+ Have the auditees’ views been adequately considered? 

l Has the requester been informed of the overall 

message so that no surprises occur when the product 

is issued? 

Final Quality Checks At this point in the lie of an assignment, those 

responsible for it are convinced of its quality. Is that 

enough for the organization? Two other quality 

tests-an independent verification of the evidence 

supporting the product (referencing) and product 

review-can help ensure quality. 

Referencing GAO uses a process called referencing to provide an 

objective look at the support for the product-a 

careful evaluation of the evidence. It requires that the 

person performing this careful evaluation-the 

referencer-be independent, objective, and 

experienced. Referencers should have analytical 

ability and a thorough lmowledge of applicable 

standards and audit organization policies and 

procedures. 

Based on their review, referencers should be able to 

answer questions such as: 

m Have the workpapers received appropriate 

supervisory review? 

Page 27 GAO/OP-4.1.6 
Chapter 3 

Doing the Job Right 

l Are facts and figures correctly reported as determined 

by satisfactory evidence in the workpapers or by 

independent mathematical or other checks? 

l Axe findings adequately supported by the facts in the 

workpapers? 

l Do conclusions and recommendations flow logically 

from the findings? 

l Was the report coordinated with key officials within 

the audit organization (e.g., in GAO the Assistant 

Comptrollers General for Policy and Planning and 

Reporting, the Office of the General Counsel, the 

Chief Economist, and the head of other organizations 

may have an interest in the subject matter)? Were 

their comments adequately addressed and 

documented? 

l Have the auditee’s views been accurately reported 

and are points made in rebuttal accurate and 

adequately supported? 

. Has a qualified person who is not involved in the 

assignment examined highly technical data? Are the 

results of that examination documented in the 

workpapers? 

Product Review 

Points, questions, and suggestions made by the 

referencer may disclose flaws that cannot be 

permitted in a high-quality product. They should be 

documented and carefully reviewed by the team 

leader and, where necessary, by higher level 

managers. Action taken on the referencer’s comments 

should also be documented. 

The referencer should also be alert to pertinent 

evidence in the workpapers that either contradicts or 

calls into question facts or statements in the report 

(negative assurance). Such observations should be 

noted for management consideration. 

Product review is a quality check to provide 

assurance that 

Page 28 GAwOP-4.1.6 
R 

Chapter 3 

Doing the Job Right 

l higher level managers are satisfied with the overall 

quality of the product; 

. the message is sound, addresses the objectives, and 

meet23 the customers’ needs; 

l the message is consistent with prior positions (if not, 

did the appropriate off~dals approve the change); 

l key units of the audit organization had an opportunity 

to review the product and agreed with the message; 

and 

l the auditee’s views are appropriately reflected and 

key differences have been adequately addressed. 

Page 29 GAWOP4.1.6 
Chapter 4 

Getting Results 

Purpose Recommendations are made with expectations of 

getting prompt corrective actions that achieve desired 

results. 

The quality control system should provide a sound 

basis for getting prompt and satisfactory action from 

recommendations. Key elements for enhancing such 

action include 

high-quality recommendations, 

commitment, 

effective monitoring and followup, and 

special attention to key recommendations. 

This chapter provides guidance on this important 

aspect of audit effectiveness. How to Get Action on 

Audit Recommendations (GAO/OP-9.2.1) discusses 

the subject in greater detail and includes case studies. 

High-Quality The report demonstrates the problems in need of 

action, presents the needed corrective action, and Recommendations 1 ‘d en tif ES who can take it. Highquality 

recommendations pinpoint needed changes. 

In developing recommendations, the team should 

consider questions such as: 

l Is it clear why a change is needed, why current 

conditions should not be allowed to continue, and 

what the underlying cause of the problem is? 

l Does the recommendation include specific actions 

that should be taken and results that should be 

achieved? 

l Is the recommendation convincing? 

l Will it correct the root cause of the problem? 

l Have alternatives been adequately considered? 

. Is the recommendation feasible and cost-effective? 

9 Is it clear who should take the corrective action? 

Page30 GAWOP-4.1.6 
Chapter 4 

Getting Results 

Commitment Commitment is believing in the recommendation and 

ln its importance. Individual members of the team can 

test their commitment by answering questions like: 

Am I willii to devote the extra effort to demonstrate 

the merits of implementing the recommendation? Do I 

fully understand the environment in which the 

recommendation will be received and evaluated? Has 

the team explored options and alternatives to 

achieving intended results without sacrificing the 

goals being sought? Have we created a climate of 

helpfulness and cooperation that generates respect 

and confidence? Have I made the commitment to 

work with the audited agency to ensure successful 

implementation of the recommendation? 

Staff commitment to results is heightened when 

management emphasizes results as a major objective 

(measuring outcomes, not outputs); 

tangible results are highlighted and identified as 

successful outcomes; 

followup is emphasized as a significant and valued 

responsibility; 

appraisal and award/reward systems recognize and 

reinforce the value of audit outcomes and reward 

accomplishments and proactive, innovative, and 

creative approaches in achieving desired outcomes; 

and 

training programs reinforce these values and 

encourage staff to prepare action plans to get 

recommendations accepted and effectively 

implemented. 

Monitoring and 

Followup 

Monitoring and followup systems should answer two 

key questions: 

Systems l What improvements were made as a result of the 

work? 

l Did those improvements achieve the desired result? 

Page 31 GAO/OP-4.1.6 
Chapter 4 

Getting BesuIts 

Determining actions that were taken on 

recommendations require active status monitoring of 

recommendations. Individual responsibilities should 

be defined and ground rules established that describe 

minimum required actions, documentation required, 

and the like. They should leave room for staff 

initiative to tailor followup actions to particular 

recommendations and the results they seek. 

How far should staff go in verifying not only that 

action was taken but, more importantly, that it 

achieved desired results? Staff should be able to 

answer questions such as: Are implementation plans 

and time frames consistent with recommended 

actions? Have the steps to carry out the planned 

actions been adequately documented? Are the 

auditees’ estimates of dollar savings or other benefits 

reasonable? 

Generally, some limited testing of the implementation 

would be expected to ensure it is working as 

intended. For key recommendations, these tests are 

essential. 

Special Attention While all recommendations should be aggressively 

to Key pursued, some are so significant that added steps are 

needed to get them implemented: 

Recommendations 

l The significance of a recommendation should be 

communicated to the auditee as early as possible 

during an assignment. 

l Key recommendations should be identified and 

highlighted in reports. 

l If action on a key recommendation is not progressing, 

this should be communicated to auditee management. 

The head of an audited organization cannot be 

expected to focus on every recommendation; 

Page 32 GAOIOP-4.l.6 
Chapter 4 

Getting Besults 

therefore, the auditor must carefully choose those 

matters that deserve this special attention. 

Page 33 GAoIOP-4.1.6 
i 

Chapter 5 

Demonstrating Consistent Quality 

and use a system that promotes quality in assignment 

selecting, planning, performing, reporting, and 

following up. This chapter helps determine whether 

the quality control system has resulted in consistent 

quality throughout the organization measured by 

outcomes rather than outputs. It also discusses peer 

reviews and how they can help provide valuable 

feedback and ensure consistent quality. 

Internal Quality 

Reviews 

How consistent is quality among products and 

product types within and among organizational units? 

Does the quality control system help ensure that 

quality is maintained each time, every time? 

Answering these questions requires reviewing and 

testing policies and procedures. It also requires 

assessments of the quality of individual audits after 

they have been issued. Over time, all organizational 

units should be reviewed and their products tested. 

Reviewers should be independent of the unit being 

reviewed. 

This postaudit quality review provides top managers 

with an independent assessment of the extent to 

which the organization complies with Government 

Auditing Standards and its own policies and 

procedures. 

In reviewing compliance with Government Auditing 

Standards and policies and procedures, questions 

should be answered such as: 

l Are policies and procedures consistent with 

Government Auditing Standards? 

l Are policies clearly stated and are they doable? Do 

they cover key matters on which guidance would be 

helpful? 

Page 34 GAmOP-4.1.6 
Chapter 6 

Demonstrating Consistent Quality 

. Are policies unnecessarily prescriptive or do they 

leave room for using initiative and objectivity in 

meeting assignment objectives? 

* Are policies and procedures readily accessible by 

staff? 

- Have staff been adequately trained in the 

organization’s policies and procedures? 

l How is compliance with policies and procedures 

assessed? 

Reviewing individual assignments provides valuable 

feedback to managers on how well selected 

organizational units consistently achieve the expected 

quality. The number and type of assignments selected 

for testing should provide a reasonable basis for 

making this assessment. In reviewing individual 

assignments, questions should be answered such as: 

l Was the team collectively qualified for the tasks 

required? Did individual staff members meet 

applicable continuing professional education 

requirements? 

l Do the workpapers indicate any unresolved questions 

concerning external or personal impairments to 

independence? 

9 Was there adequate evidence that a determination 

was made of applicable standards and that they were 

complied with? 

l Were assignment objectives dear and responsive to 

requesters’ or auditees’ needs? Was the assignment 

scope adequate? Was methodology appropriate? Were 

data sources, methodology, and data collection 

instruments tested? Was a detailed audit plan 

prepared? 

n Was the assignment plan effectively implemented? 

Were deviations from the plan consistent with 

Government Auditing Standards and appropriate to 

assignment objectives? Were the workpapers 

adequately documented, summarized, indexed, and 

reviewed? 

Page 36 GAO/OP-4.1.6 
Chapter 6 

Demonstrating Consistent Quality 

. 

* 

. 

. 

. 

l 

. 

. 

. 

. 

. 

. 

. 

Was there evidence that supervision was timely, 

adequate, and responsive to staff needs and 

professional development? 

Was the reliability of computer-processed data 

established when their use was significant to 

assignment objectives? 

Was the reliability of significant data supplied by 

others appropriately established? 

Were applicable internal controls identified, tested, 

and appropriately relied on? 

Was compliance with laws and regulations applicable 

to assignment objectives appropriately tested? 

Were findings and conclusions supported in the 

workpapers and was the evidence relevant, 

competent, and sufficient? 

Were auditees’ positions on findings and 

recommendations obtained and appropriately 

handled in report development and presentation? 

Was the report timely? 

Did the report meet Government Auditing Standards 

and organizational policies and procedures, 

assignment objectives, and requesters’ or auditees’ 

needs? 

Did conclusions follow reasonably from the findings? 

Were recommendations responsive to the root cause 

of deficiencies detected? Were they clearly doable 

and cost-effective? 

Was there adequate evidence that the facts in the 

report were independently referenced? Were 

referencer’s questions appropriately handled? 

Was the report reviewed for logic and consistency of 

positions taken? 

Audit Effectiveness An effective quality control system needs to do more 

than ensure the quality with which work was 

performed. It also needs to determine what the work 

accomplished and how the result was viewed by 

customers and stakeholders. 

Page 36 GAO/OP-4.1.6 
Chapter 6 

Demonstxating Consistent QnaliQ 

This can be done by system approaches such as: 

l Surveys of customers and stakeholders. Did they 

consider the work to be timely and responsive to their 

needs? Did they find it convincing and usefirM Were 

they able to use the rest&s-implement the 

recommendations? Do they believe that the 

recommendations achieved their intended results? 

l Recommendation tracking and reporting systems. Is 

there a system in place to followup on all 

recommendations and to determine what action was 

taken with respect to them? How were implementing 

actions and their results tested? Was special attention 

given to key recommendations? Were 

accomplishments reported and major contributors 

identified? 

l Performance measurement and award/reward 

systems. Do those systems measure and emphasize 

outcomes or do they give inordinate emphasis to 

factors such as report production? 

3 Peer Review states: 

“Audit organizations conducting government audits should. . . 

participate in an external quality control review program.” 

The following are some organizations that help audit 

organizations comply with Government Auditing 

standards: 

l The President’s Council on Integrity and Efficiency 

(PCIE). PCIE publishes standards and detailed 

guidance for conducting reviews of the audit 

operations of the Offices of the Inspector General 

(OIGs). It operates a peer review program for the 

OIGs. 

l The National State Auditors Association (NSAA). Peer 

reviews are conducted by NSAA in accordance with 

Page 37 GAO/OP-4.1.6 
Chapter 5 

Demonstrathg Consistent Quality 

policies and procedures developed by the NSAA Peer 

Review Committee and approved by NSAA members. 

The program is administered by the National 

Association of State Auditors, Comptrollers, and 

Treasurers. 

National Association of Local Government Auditors 

(NALGA). N&GA has prepared a guide to help 

. 

&ditorsmeet the requirements of kovenunent 

Auditing Standards. The NALGA Peer Review 

Committee responds to questions about the guide and 

helps to identify potential reviewers. The committee 

receives reports issued using the NALGA guide and 

will serve as a mediator or arbitrator of unresolved 

disputes between an audit organization and a review 

team. 

l The Institute of Internal Auditors (IIA). IIA wilI 

arrange peer reviews using Government Auditing 

Standards or its own standards. 

l The American Institute of Certified Public 

Accountants (AICPA). AICPA has defined 

requirements for the peer review of member firms. 

The AICPA “Peer Review Manual” incIudes guidelines 

covering audit engagements of state or local 

governmental entities, including those receiving 

federal financial assistance. The guidelines include 

questions for use when the engagement is subject to 

Government Auditing Standards. 

Page 38 GAOc’OP-4.1.6 
Page 39 GAoIOP-4.1.6 
Appendix I 

Listing of GAO’s Technical Guidance 

Publications (Gray Books) 

Publication Number 

AFMD-2.1.1 

AFMD-2.1.22 

AFMD4.1.0 

AFMD4. 1.12 

OP4.1.2 

AFMD4.1.3 

OP4.1.4 

AFMD4. 1.52 

OP4.1.6 

OP-4.1.7 

OIMC-6.1.1 

OP-6.3.1 

Title1 

A Glossary of Terms Used in the Federal Budget 

Process (Rev. Jan. 1993) 

Critical Factors in Developing Automated Accounting 

and Financial Management System (Jan. 1987) 

Establishing Government Auditing Standards 

(Aug. 1990) 

Government Auditing Standards (July 1988) 

Assessing Compliance With Applicable Laws and 

Regulations (Dec. 1989) 

Standards For Internal Controls In The Federal 

Government (1983) 

Assessing Internal Controls in Performance Audits 

(Sept. 1990) 

Evaluating Internal Controls in Computer-Based 

Systems: Audit Guide (June 1981) 

An Audit Quality Control System: Essential Elements 

(Aug, 1993) 

Performing GAO'S Work Where to Find Guidance and 

Help (Rev. Aug. 1993) 

Mission and Assignment Tracking System (MATS) 

Users’ Manual (Aug. 199 1) 

Message Conferences: A Guide to Improving Product 

Quality and Timeliness (Rev. June 1992) 

‘Gray books include more detailed guidance on technical subjects 

that are included in the GPPM and the CM. 

- 

%Jnder revision. 

Page40 GAWOP-4.1.6 

f 
Appendix I 

Listing of GAO’6 Technical Guidance 

I’nblicationa (Gray Booka) 

AFMD-8.1.1” 

AF’MD-8.1.2 

OP-8.1.3 

IMTEC-8.1.4 

IMTEC-8.1.4Sw3 

IMTEC-S. 1.6 

OP-9.2.1 

PEMD-10.12 The Evaluation Synthesis (Rev, Mar. 1992) 

Content Analysis: A Methodology for Structuring and 

Analyzing Written Material (Mar. 1989) 

PEMD-10.1.4 

PEMD-10.1.5 

PEMD-10.1.6 

PEMD-10.1.72 

PEMD-10.1.9 

PEMD-10.1.10 

Guide for Review of Independent Public Accountant 

Work (Dec. 1988) 

Guide for Evaluating and Testing Controls Over 

Sensitive Payments (Rev. May 1993) 

Assessing the Reliability of Computer-Processed Data 

(Sept. 1990) 

Information Technology: An Audit Guide for 

Assessing Acquisition Risk (Dec. 1992) 

Quick Reference for Automated Audit Guide 

(Dec. 1992) 

Information Technology: A Model to Help Managers 

Decrease Acquisition Risks (Aug. 1990) 

How to Get Action on Audit Recommendations 

(July 1991) 

Designing Evaluations (May 1991) 

Using Structured Interviewing Techniques (July 1991) 

Using Statistical Sampiing (Rev. May 1992) 

Developing and Using Questionnaires (July 1986) 

Case Study Evaluations (Nov. 1990) 

Prospective Evaluation Methods: The Prospective 

Evaluation Synthesis (J$ov. 1990) 

%oftware to accompany GAOAMTEC-8.1.4. 

Page 41 GAo/0P-&1.6 i 
Appendix I 

Listing of GAO’s Technical Guidance 

Publications (Gray Booke) 

PEMD-10.1.11 

IMTEC-11.1.1 

IMTEC-11.1.2 

IMTEC-11.1.3 

oss-11.1.4 

OIMC-12.1.2 

OIMC-12.9.1 

OIMC-12.14. I 

AFMD-12.19.1 

AFMD-12.19.3 

AFMD-12.19.4 

AFMD-12.19&A 

OGC-15.1.1* 

Quantitative Data Analysis: An Introduction 

(June 1992) 

Preparing, Documenting, and Referencing 

Microcomputer Data Base Applications (Apr. 1991) 

Planning, Preparing, Documenting, and Referencing 

SAS Products (Aug. 1992) 

Preparing, Documenting, and Referencing Lotus 

Spreadsheets (Nov. 1987) 

Security Highlights (Apr. 1991) 

Writing Guidelines (Sept. 19SS) 

TextFrame: Policies and Instructions for Producing 

Presentation Materials (Oct. 1988) 

Preparing Publications for Typesetting (Rev. 

Apr. 1993) 

Publishing Survival Guide (June 1990) 

How to Avoid a Substandard Audit: Suggestions for 

Procuring an Audit (May 19SS) 

Guide to Federal Agencies’ Procurement of Audit 

Services From Independent Public Accountants 

(Apr. 1991) 

The Chief Financial Officers Act: A Mandate for 

Federal Financial Management Reform (Sept. 1991) 

FinanciaI Audit Manual (June 1992) 

Guidance on Employee Ethics and Conduct 

(June 1986) 

P 

Page 42 GAWOP-4.1.6 
Appendix I 

Listing of GAO’s Technical Guidance 

Publications (Gray Books) 

OSI-16.1.2 Investigators’ Guide to Sources of Information 

(Jan. 1992) 

OCE-17.1.1 Discount Rate Policy (May 1991) 

Page 43 GAO/OP-4.1.6 
Appendix II 

Doing the Right Job-The GAO 

Example 

Legislatively 

Defined Role 

The Budget and Accounting Act of 1921 gave GAO 

broad authority and responsibility to audit federal 

agencies and to report on all matters related to the 

receipt, disbursement, and use of public money. 

Through amendments to the 1921 act and other 

GAO-specific legislation, GAO audits federally 

assisted programs and government corporations to 

l determine the extent to which accounting and 

financial reports fully disclose the financial 

operations of departments and agencies; 

l assess whether fmancial transactions have been 

conducted in accordance with laws, regulations, or 

other legal requirements; 

l evaluate whether public funds have been 

economically and efficiently administered and 

expended; 

l assess the extent to which programs are achieving 

their intended purposes; and 

l ensure consistent operation of fmam3al accounting 

systems and the application of accounting principles, 

standards, and procedures. 

While granting the Comptroller General broad 

discretion to decide which programs to audit, the 

Congress retained the right to request specific GAO 

assistance. GAO has legislatively defined 

responsibility to respond to the requests of House and 

Senate Committees and to Joint Committees having 

jurisdiction over programs and activities. 

As a matter of policy, GAO assigns equal status to 

requests from Ranking Minority Members and to 

requests from committee chairs. To the extent 

practical, GAO also responds to individual members’ 

requests. At present, about 80 percent of GAO’s 

resources are used in response to congressional 

requests. 

Page 44 GAoOP-4.1.6 
Appendix II 

Doing the Right Job-The GAO 

Example 

The Touchstone 

for Planning responsibilities, GAO establishes quality as a driving 

force. 

The following is the mission statement on which its 

planning and performance is based: 

‘We seek to achieve honest, efficient management and full 

accountability throughout government. We serve the public interest 

by providing members of the Congress and others who make policy 

with accurate information, unbiased analysis, and objective 

recommendations on how best to use public resources in support 

of the security and well-being of the American people. 

“Commitment ~IJ quality is the single most important principle 

governing our work.” 

Planning 

Framework 

To fulfill its comprehensive audit responsibilities, 

GAO’s planning framework has a wide-ranging 

perspective. It fosters jobs that (1) make individual 

programs work better and cost less; (2) highlight 

those things that work best in particular programs or 

management areas so that they can be considered for 

application in others; and (3) determine whether 

programs are overlapping, duplicative, working at 

cross-purposes, or effectively contributing to defined 

national goals. 

GAO’s planning framework is built around issues and 

issue areas. Typically, an issue area is a functional or 

major responsibility area that affects a major segment 

of American society and is tied to large government 

expenditures. An issue, on the other hand, is a 

significant topic or question of national importance 

within an issue area. 

Currently, GAO’s planning is built around 36 issue 

areas. They evaluate effectiveness, economy, 

efficiency, and accountability of federal programs in 

Page 46 GAWOP4.1.6 
Appendix II 

Doing the Right Job-The GAO 

Example 

areas such as income security, energy, environmental 

protection, health, work force quality, etc. 

Issues and issue areas are redefined or changed when 

necessary to respond to congressional needs, new 

government initiatives, or when GAO’s managers 

believe that other alignments would provide better 

results. 

Multiyear Plans GAO managers develop multiyear plans for each issue 

area Depending on the issue area, plans normally 

cover 2 to 3 years. 

Key Steps In developing the plan, GAO managers do the 

following: 

l Identify the most significant issues the Congress and 

the country will face during the planning period, 

determine what contribution GAO can make, and 

identify the level of GAO resources that can 

reasonably be applied to each. 

For example, GAO’s Medicare and Medicaid issue 

area could focus its planning on issues such as: 

- How can Medicare payment methods be changed 

to improve the incentives to provide cost-effective 

care? [Medicare Pavment Methods) 

- What alternative financing and delivery models 

would suggest ways to improve access and reduce 

cost growth? (Alternative Financing and Delivery 

Models) 

l Determine realistic objectives for each issue. 

Objectives focus on expected results. Those results 

could be program improvement, savings, agency 

efficiency, or assistance to the Congress in making a 

Page 46 GAOIOP-4.1.6 
Appendix II 

Doing the Right JoLTbe GAO 

Example 

key decision. They are focused on external action by 

an agency or the Congress to achieve particular 

results. 

For example, an objective of the Medicare Payment 

Methods Issue could be to improve Medicare’s 

existing payment reforms to encourage additional 

savings, 

l State the anticipated results of accomplishing each 

objective. GAO defines anticipated results as the 

specific contributions or measurable results it 

expects to achieve and the time when they are 

expected to occur. Taken together, they constitute the 

accomplishment of an objective. The specific impact 

on an agency or program is the focus for anticipated 

results. 

s Develop the strategy to be followed in planning 

assignments. Strategy is the approach, plan of action, 

or method needed to meet issue objectives and 

anticipated results. 

For example, a strategy for the Medicare Payment 

Methods Issue could be to nerform studies to 

(1) monitor the implemen&tion of payment reforms 

for physicians and hospitals and (2) determine 

whether payments are appropriate in the parts of 

Medicare not already covered by major reforms. The 

strategy also includes the major efforts, such as 

econometric modeling of cost growth in hospitals. 

Cooperative 

Development 

In preparing a multiyear plan for an issue area, 

managers and staff get a wide range of input to ensure 

that it has GAO-wide perspective and is based on a 

high level of subject matter knowledge and expertise. 

The views of key congressional committee staff 

representing both majority and minority parties and 

the agency are particularly important. 

Page 47 GAoloP4.1.6 
Appendix II 

Doing the Right Jo&The. GAO 

ExampIe 

For planning conferences, participants are 

encouraged to freely exchange ideas, thereby adding 

to the quality of the plans. Participants could include 

GAO staff, congressional representatives or staff, 

agency officials, and outside experts. 

Top Management 

Participation 

The Comptroller General and other top GAO 

managers provide initial guidance and continuing 

oversight of issue area planning and performance. 

They take the following actions: 

l Conduct sessions to discuss new issue area plans and 

provide guidance for planned issues and objectives. 

l Review and approve issue area plans. 

l Allocate resources to carry out the objectives of 

approved plans. 

l Conduct a weekly review of incoming congressional 

requests, all new assignments, and assignments 

moving into data collection and analysis or product 

preparation phases. Among other objectives, thii 

review considers consistency with issue area 

planning. 

l Discuss individual assignments of particular 

complexity, interest, or sensitivity. 

Annual Updates Because events may significantly affect even the best 

of plans, GAO reviews and updates its multiyear plans 

annually. The updates (1) promote accountability by 

comparing performance and results with plans and 

(2) keep plans current. 

The effort involved in preparing an update is typically 

less extensive than for new plans. However, this 

effort should include a discussion of GAO’s principal 

customer needs and major efforts designed to meet 

them. Updates assess what has been achieved to date 

for each issue as well as needed additions, deletions, 

or plan revisions. 

Page 48 GAoIOP-4.1.6 
Appendix II 

Doing the Right Job-The GAO 

Example 

If reevaluation of an issue area establishes the need 

for redirection or for extensive changes, a new 

plan-rather than an update-is prepared. 

GAO defines major jobs to be done during the period 

and assigns priorities. It ensures that individual jobs 

are consistent with issue area objectives and are 

within assigned resources. 

c 

/ 

Thii process alerts GAO’s field offices to potential 

work and helps to communicate planned work 

throughout GAO, encouraging coordination and 

avoiding duplication. 

Page 49 GAo/OP-4.1.8 

Ordering Information 

The first copy of each GAO report and testimony 

is free. Additional copies are $2 each. Orders 

should be sent to the following address, 

accompanied by a check or money order made 

out to the Superintendent of Documents, when 

necessary. Orders for 100 or more copies to be 

mailed to a single address are discounted 

25 percent. 

Orders by mail: 

U.S. General Accounting Office 

P.O. Box 6015 

Gaithersburg, MD 20884-6015 

or visit: 

Room 1000 

700 4th St. NW (corner of 4th & G Sts. NW) 

U.S. General Accounting Office 

Washington, DC 

Orders may abo be placed by calling 

(202) 5128000 or by using fax number 

(301) 268-4066. 
United States 

General Accounting Office 

Washington, D.C. 20648 

Offxcial Business 

Penalty for Private Use $300