About Audit Services

Internal auditing is focused on identifying risks that threaten the ability of an organization to accomplish its mission. The Audit Services Division conducts independent financial and performance audits of City agencies to help mitigate identified risks. Our work focuses on enhancing efficiency and effectiveness, reducing costs, and improving the quality of services provided to citizens.

To determine which agencies and operations to audit, we perform an annual risk assessment. This exercise helps us prioritize our work based upon specific risk factors, such as estimated liability to the City. We strive for widespread audit coverage that touches a wide variety of City departments, programs, activities, and initiatives.

We perform our audits in accordance with Generally Accepted Government Auditing Standards, promulgated by the U.S. Comptroller General. The quality of our work is assessed through a peer review conducted every three years.  During our most recent peer review, we received a determination of full compliance, the highest level achievable under the Association of Local Government Auditors peer review program.

Our Audit Reports

We conduct approximately 20 audits per year, the results of which are communicated through formal audit reports. The purpose of an audit report is to communicate our findings to the audited agency, relevant oversight officials, and the public. In addition to explaining what we found in the course of the audit, our reports make recommendations to audited agencies, specifying how they can improve any weaknesses we identified.

Our audits are reported out monthly through the City’s Independent Audit Committee. During these meetings, presentations of our findings, questions from Audit Committee members, and comments from audited agencies are televised live on Denver 8.

Audit Follow Up

The Audit Services Division monitors and follows-up on all audit recommendations to ensure that our audit findings are being addressed. We communicate our follow-up activities through formal follow-up reports, specifying how each recommendation was implemented or why an agency elected not to implement any outstanding recommendations. In instances where we determine that appropriate corrective action has not been taken, we may revisit associated risk areas in future audits.

City Charter

Our authority is granted by the City Charter, Article V, Part 2, Section 1, General Powers and Duties of Auditor.

Significant Changes with Charter Amendments 2006

Amendments to the Charter passed in 2006 improved and streamlined the City’s financial structure and enhanced the independent standing and authority of the Auditor:

  • The City’s accounting and payroll functions transitioned from the Auditor’s Office to the Controller’s Office.
  • Broad audit authority is exercised in accordance with Generally Accepted Government Auditing Standards promulgated by the Comptroller General of the United States. These standards establish clear requirements related to the independence of the audit function.

 

Follow Up to Audit Findings

To enhance the impact of the Audit Services Division, City Ordinance requires that audited agencies and departments formally respond to audit findings and recommendations. We conduct follow-up work to verify that corrective actions have been taken to address audit findings.

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