- The Quarterly
- Audit Excellence
The objective of a peer review is to determine whether an audit organization's quality control system is suitably designed and is in place and operating effectively. A peer review also provides assurance that an audit organization is following its established policies and procedures and applicable auditing standards.
ALGA developed the Peer Review Program in 1991 to assist local government audit organizations in meeting the profession’s peer review requirements. Government Auditing Standards, promulgated by the U.S. Government Accountability Office (GAO), establishes professional standards for conducting audits in government. Those standards require audit organizations to receive an external peer review at least once every three years.
In 2007, ALGA developed a companion program for local government audit organizations following the International Professional Practices Framework issued by the Institute of Internal Auditors (IIA). Those standards require audit organizations to receive an external quality assurance review at least once every five years.
The GAO and the IIA reviewed ALGA’s Peer Review Program and found that it satisfies the requirements under both sets of standards. Peer review team members who maintain certifications under the IIA may receive up to 10 Continuing Professional Education (CPE) credits when performing an ALGA Peer Review. For guidance on specific certification limits, see Administrative Directive Number 4 Continuing Professional Education and Continuing Professional Development Requirements for all Certification and Qualification Programs issued by the IIA Global Certifications Department - August 2015. (Please note: the GAO does not accept peer review participation for CPE under Government Auditing Standards.*)
As of February 2017, ALGA has performed over 500 peer reviews and currently averages 45 reviews each year. The program continues to be one of ALGA’s most popular member benefits.
*In addition, CPA rules regarding CPE for peer review participation vary state by state.
Peer review Resources