11/16/2015

Internal Audit Management

Exit Conference
November 20, 2015

Carolyn A. McGriff, MBA, CIG, CPA, CGFM,

CGMA
Director of Auditing
Florida Department of Economic Opportunity
Office of Inspector General

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Agenda – Topics to Discuss

• How Do You Know When You’re Ready for the
Exit Conference?
• Key Elements of a “Successful” Exit Conference
• Who to Invite to the Exit Conference?
• Communicating the Reporting and Response
Process for Adverse Findings (Section 20.055,
Florida Statutes (F.S.))
• Reporting of Confidential and Exempt Information
• Discussion of Report Distribution

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How to Know When You’re Ready

for Your Exit Conference?

• Findings have been developed

• Workpapers have been completed and reviewed
• OIG management has approved draft findings
and/or management comments
• Communication of potential issues, findings
and/or areas of concerns has been made with
the Auditee

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Key Elements of a “Successful”

Exit Conference
• Plan, Plan, Plan!
• Consider a working exit conference
• Consider providing a draft report prior to the
conference
• Practice makes perfect!
• Be organized
• Circulate a sign-in sheet
• Be professional in appearance and attitude

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Key Elements of a “Successful”

Exit Conference – Cont.

• Display confidence
• Expect the unexpected
• Ensure that findings presented address
critical elements:
• “present factual data accurately, fairly, and
objectively;

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Key Elements of a “Successful”

Exit Conference – Cont.

• present findings, conclusions and

recommendations in a persuasive manner”

Source: Principles and Standards for Offices of

Inspector General’s Seventh Qualitative
(Reporting Standard) for OIG inspections,
evaluations, and reviews.

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Key Elements of a “Successful” Exit

Conference – Cont.
• Communicate effectively
• Verbal and non-verbal
• IIA Standard – 2400
• Communicating Results – Internal
auditors must communicate the results of
the engagements. Communication must
be accurate, objective, clear, concise,
constructive, complete and timely.

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Key Elements of a “Successful”

Exit Conference – Cont.

• Listen to the Auditee’s response

• Be flexible and allow room for
negotiation, where appropriate or
applicable
• Manage and resolve conflicts

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Key Elements of a “Successful”

Exit Conference – Cont.
• Establish a realistic follow-up for
comments and disagreements
• Allow time for additional
documentation.
• Explain the timetable for response
• Document meeting results

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Who to Invite to the Exit

Conference?

 The decision of who to invite should be based on

input from the IG, CAE/Audit Director, Audit Staff
and the Auditee.

 Invitation could include:

 Executive Director
 Chief of Staff

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Who to Invite to the Exit

Conference? – Cont.

 Invitation – cont.:
 Program Director
 Staff Worked with During the Engagement
 Mandated Parties
 Parties Outside the Organization

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Who to Invite to the Exit

Conference? – Cont.
 IIA Standard 2440 – The Chief Audit Executive
(CAE) must communicate results to the
appropriate parties.

 Standard 2240.A1 – The CAE is responsible for

communicating the final results to parties who
can ensure that the results are given due
consideration.

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Who to Invite to the Exit

Conference? – Cont.

 IIA Practice Advisory 2440-1

 Includes discussions and people to invite
to the exit conference and management
review of draft engagement issues.

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Overview of 20.055, F.S. Related to the Exit

Conference

 Ensure that the Auditee understands the

reporting and response process under
Section 20.055(6)(d) and (e), F.S. as
outlined below:
“At the conclusion of each audit the IG shall
submit preliminary and tentative findings and
recommendations to the person responsible
for supervision of the program function or
operational unit”.
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Overview of Section 20.055, F.S. Related

to the Exit Conference - Cont.

 Auditee must respond to any adverse findings

within 20 working days after receipt of the
findings.
 The response and the IG’s rebuttal to the
response, if any, must be included in the final
report.

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Reporting of Confidential and

Exempt Information
 Arrangements must be made regarding the
disclosure of confidential and sensitive
information prior to the exit conference.
 Verbal communication – ensure that
attendees at the exit conference can be
privy to the finding;
 Written communication – transmit in a
secure agreed-upon manner.

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Discussion of Report Distribution

 Section 20.055(6)(f), F.S. - The IG is to

submit the final report to the agency head,
the AG, and for state agencies under the
jurisdiction of the Governor, the Chief
Inspector General.

 IIA 2440 – The CAE must communicate

results to the appropriate parties.

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Discussion of Report Distribution –

Cont.

 Errors and Omissions - IIA Standard 2421 –

“If a final communication contains a
significant error or omission, the CAE must
communicate corrected information to all
parties who received the original
communication”.

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Overview of IIA Standards Related

to the Exit Conference

 2330 – Documenting Information

 Internal Auditors must document relevant
information to support conclusion.

 2400 – Communicating Results

 The CAE is responsible for communicating
results.

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Overview of Government Auditing

Standards (GAS) Related to the
Exit Conference
 Chapter 7 – Reporting Standards for
Performance Audits

 Reporting Views of Responsible

Officials
 7.32 through 7.38

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Overview of Government Auditing

Standards (GAS) Related to the
Exit Conference – Cont.
 Obtain and report the views of responsible
officials;
 Provide a draft report review and
comments;
 Received written comments;
 Include in the report an evaluation of the
comments, as appropriate

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Overview of Government Auditing

Standards (GAS) Related to the Exit
Conference – Cont.
 Reporting Confidential and Sensitive Information
 7.39 through 7.43
 Disclose in the report that certain information
has been omitted and the reason for the
omission.
 Restrict availability of confidential and
sensitive information.

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Overview of Government Auditing

Standards (GAS) Related to the Exit
Conference – Cont.
 Distributing Reports
 7.44 – Distribute report to those charged with
governance, appropriate officials and
oversight bodies.

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Overview of Principles and

Standards for Offices of Inspector
General Related to the Exit
Conference

 Refer to slides 5 and 6 for critical

element pursuant to this
standards.

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Resources
 The IIA – www.theiia.org
 AIG - http://inspectorsgeneral.org/
 GAS – http://www.gao.gov/yellowbook/overview
 Section 20.055 Florida Statutes -
http://www.leg.state.fl.us/statutes/index.cfm?App
_mode=Display_Statute&Search_String=&URL=
0000-0099/0020/Sections/0020.055.html

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Thank you

Carolyn A. McGriff

Office: (850) 245-7136

Email:
carolyn.mcgriff@deo.myflorida.com

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