Part 3: Guidelines

for Conducting an

Internal Audit –

Webinar

Questions from Part 2

Agenda

• Completing the internal audit report

• Determining judgements based on the

evidence presented

• Handling non-compliances

• Post audit activities

Completing the internal audit report

Prior to conducting an internal audit, the

RTO needs to develop or choose an

internal audit report to be used by the

internal auditor.

Internal audit report form

Internal audit reports are designed to: • help the continuity of the audit • prioritise areas for investigation • act as prompts for the auditor • provide a convenient note-taking device • provide a section for recording subsequent rectifications and comments; and • assist with planning and control.

Internal audit report form

Planning

Evidence obtained

Judgement

SNR 15.2

Internal audit summary

Recording

Rectification

Internal audit summary

Reporting information

Rectification

SNR 15, element 15.2 SNR 15

SNR 15.2

Audience chat

Raise your hand to speak if you have a microphone

Or type your comments in the chat window

Would you like to respond? Are there any areas of the report that you wish to ask questions

about?

Conduct the audit

• Based on audit schedule

• Auditee informed in advance and reminded two or three days before

• Ensure all materials and people are available

‘Remember you are auditing the system and not the person’

Determining judgements

Based on the evidence presented it is now important to make a

judgement

• Compliant

• Non-Compliant

• Minor non-compliance

• Significant non-compliance

• Critical non-compliance

• Opportunity for Improvement

• Not Applicable

Consider also terminology associated with your “business system”

Non-compliant judgements Minor non-compliance

No, or minor, adverse impact on learners with no

serious breakdown of provision of quality training

and assessment.

Significant non-compliance

Significant adverse impact on learners with

insufficient focus on quality training and

assessment outcomes.

Critical non-compliance

Critical adverse impact on learners with

widespread or persistent dissatisfaction with

services and outcomes.

How would you judge the following evidence?

‘The assessment tools were not supported by

benchmark criteria (model answers and acceptable

performance standards) to ensure consistent

determinations across a range of learners and

assessors.’

Non-compliant judgements

How would you judge the following evidence?

‘There was no evidence to indicate any of the

qualifications on the scope of registration had been

systematically validated.’

Non-compliant judgements

How would you judge the following evidence?

‘The pre-enrolment information for the qualifications

provided at audit did not clearly outline the number of

core and elective units to be completed for successful

completion of each qualification.’

Non-compliant judgements

How to write up your findings

Non-compliance

• Record details of exactly why the evidence does not meet the requirements of the Condition/Standard/Element

• Be objective in your statements – don’t personalise the judgement

• Where possible – provide as much information as you can to ensure that there is a clear indication of the expected outcome without giving your solution

• Be realistic in your timeline – although non-compliances should be actioned as soon as possible)

‘Not compliant with element 1.2 / SNR15.2’

Non-compliant judgements

How useful is this comment?

Example findings for Minor non-compliance

• The RTO did not provide evidence that identified the nominated trainer/assessor for “Cert x”

• Implementation of the complaints and appeals policy was inconsistent

• Training and Assessment Strategies contained errors in titles of the core and elective units

• The RTO has developed appropriate training and assessment strategies for the

qualifications they deliver but was not able to provide evidence of a strategy for the

delivery and assessment of the ‘stand alone’ unit of competency ‘BSBxxxxxxx’.

• Third party/supervisor report did not have sufficient benchmark criteria for the third party to

comment against

• One unit of competency required additional assessment tasks to encompass all required

knowledge

Example findings for Significant non-compliance

• The organisation's assessment methods did not match the assessment strategies

• Industry engagement in creation of assessment strategies was not identified

• “x” trainers were identified as having insufficient ongoing professional development and content

currency

• No assessment information provided to student and trainers regarding requirements, context and

purpose of assessment

• Some learning strategies were not reflective of the actual order of training taking place

• Insufficient evidence of delivery and assessment methods

• The organisation provided a copy of its qualification and statement of attainment templates which do not

comply with the requirements of the AQF Implementation Handbook, Fourth Edition 2007

• A review of the organisation’s website indicated that the Nationally Recognised Training (NRT) logo was

not being used in accordance with the NRT logo specifications

• Competency is determined by graded assessment

Example findings for Critical non-compliance

• No evidence was available to demonstrate how XXX will ensure its trainers and assessors

continue to develop their vocational and training and assessment competencies

• There was no evidence sighted that would show how the RTO has involved industry in the

development of the Training and Assessment Strategy

• There is no formal recording of assessment outcomes and no formal assessment

instruments being utilised

• There was no evidence of trainers and assessors qualifications to deliver and assess. No

evidence was available to demonstrate the trainers and assessors were competent to

deliver and assess in Certificate IV in (x)

What happens after the

internal audit?

What does the RTO do with non-compliances?

• Allocate and indicate the appropriate Staff member/s

responsible for actioning the rectification

• Ask them to write a rectification strategy (instructions

detailing exactly what needs to be amended to meet

the criteria)

• Provide an expected timeframe for the rectification to

be completed

Audience chat

Raise your hand to speak if you have a microphone

Or type your comments in the chat window

Would you like to respond? Why wouldn’t you expect an auditor (internal or external)

to write the rectification strategy at

the completion of the audit?

What happens after the internal audit?

• Report should be produced ASAP

• Must reflect the tone and content of the audit and ideally

outline any additional rectification support required

• Completed internal audit report to be forwarded to Chief

Executive for comment, endorsement of rectification

strategies and signature

• Once signed off, the auditor should convey findings and

timeframe to auditee/s

What happens after the internal audit?

• Once timeframes have been reached, a follow up

meeting should occur to sign off on rectifications

• If still outstanding, refer to CEO until signed off

• Keep a copy of the original with all rectifications

signed off for the next internal audit

Audience chat

Raise your hand to speak if you have a microphone

Or type your comments in the chat window

Would you like to respond? Think about ways we can refine our internal auditing skills and

ensure consistent outcomes.

One method could be audit moderation sessions

Auditor Moderation activities could include

discussing and reaching agreement about:

• Audit process

• Audit tools and methods

• Audit evidence provided

• Judgement based on the evidence

What we covered in Session 3

• Completing the internal audit report

• Determining judgements based on the

evidence presented

• Handling non-compliances

• Post audit activities

Summary of series

AQTF/VQF updates and evidence requirements

Internal auditing and links to continuous improvement

Internal auditing processes and techniques

Approaches to audit

Recording evidence and the internal audit report

Audit improvement practices

POLL

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Upcoming Velg Training Webinars

Validation: The Front Line

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Avoiding non-compliances for RTO Trainers & Assessors

• 27 March 2013

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• 17 April 2013

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