Peer Review of the 
PORT OF SEATTLE 
Internal Audit Department 
August 7, 2012

Presentation Overview 
I.   The Peer Review Team 
II.   The Association of Local
Government Auditors 
III.  Review Objectives 
IV. Auditing Standards 
V. Expected Deliverables 

Association of Local Government Auditors

The Peer Review Team 
I The Peer     Ruthe Holden,CPA, CISA, CIA, CGAP, CGMA 
Review Team 
Chief Auditor, LACMTA 
II A.L.G.A. 
III Auditing      David Schroeder,CPA, CISA 
Standards 
City Auditor, City of Houston 
IV Review
Objectives     Jan Williams,CPA, CIA, CGAP 
V Results of the  Internal Auditor II, VIA Metropolitan Transit 
Review 
Nicole Rollins 
Senior Auditor, Jackson County, Oregon 
Association of Local Government Auditors

The Association of Local
Government Auditors 
I The Peer  Professional Organization: 
Review Team 
Over 2,500 members 
II A.L.G.A. 
III Government A.L.G.A. Objectives: 
Auditing
Standards     Improve local government auditing 
Provide a forum for exchanging information 
IV Review
Objectives     Encourage and uphold highest professional
standards 
V Results of the
Review 
A.L.G.A provides peer review services 
Association of Local Government Auditors

Auditing Standards 
I The Peer    Government Auditing Standards 
Review Team 
Issued by the Comptroller General of the United
II A.L.G.A.         States 
Yellow Book 
III Auditing
Standards      Applicable for federal, state and local government
auditors 
IV Review
Objectives 
International Professional Practices
V Results of the  Framework 
Review 
Issued by the Institute of Internal Auditors 
Red Book 
Applicable to all internal audit departments 
Association of Local Government Auditors

Quality Control Reviews 
I The Peer    External Peer Review 
Review Team 
GAGAS every 3 years 
II A.L.G.A.          IIA every 5 years 
III Auditing
Standards    Internal Self Assessment 
GAGAS  annual monitoring 
IV Review
Objectives        IIA  annual internal quality self assessment 
V Results of the
Review 

Association of Local Government Auditors

Review Objectives  Phase 1 
I The Peer     Assess the adequacy of the audit
Review Team 
organization's internal quality control
II A.L.G.A. 
system: 
Review       Examine established policies and control
III Objectives 
procedures for adequate design 
IV Auditing     "establish and maintain a system of quality control that
Standards 
is designed to provide the audit organization with
V Results of the   reasonable assurance that the organization and its
Review       personnel comply with professional standards and
applicable legal and regulatory requirements" 

Association of Local Government Auditors

Review Objectives  Phase 2 
I The Peer     Assess whether Auditing Standards
Review Team 
were followed: 
II A.L.G.A. 
Examine work papers for a compliance to
III Review          Quality Control System 
Objectives 
Review continuing professional
Auditing         education & staff qualifications 
IV Standards 
Review governance & management of
Internal Audit Department 
Results of the
V Review 
Interview audit personnel & key
stakeholders 
Association of Local Government Auditors

General Standards 
I The Peer     Independence & Objectivity 
Review Team 
NEW for GAGAS 
II A.L.G.A             Application of Conceptual Framework 
. 
III Review            Threats 
Objectives 
Safeguards 
IV Auditing          Non-Audit Services (Specific
Standards           requirements) 
V Results of the  Proficiency & Due Professional Care 
Review 
Qualifications 
Professional Development 
Association of Local Government Auditors

Attribute Standards 
I The Peer
Specific to Red Book: 
Review Team 
Audit Charter for Internal Audit 
II A.L.G.A. 
Direct Interaction with Board 
III Review
Annual entity-wide Risk Assessment 
Objectives 
Annual Risk Based Audit Plan 
IV Auditing
Standards      3 Mandatory Annual Board
Communications 
V Results of the
Independence 
Review 
Internal Audit Department's Charter 
Internal Quality Self Assessment 
Association of Local Government Auditors

Engagement Standards 
I The Peer
Field Work Standards: 
Review Team 
Planning 
II A.L.G.A. 
Supervision 
III Review
Objectives       Compliance with laws and
IV Auditing          regulations 
Standards 
Management controls 
V Results of the
Evidence 
Review 

Association of Local Government Auditors

Engagement Standards 
I The Peer
Reporting standards: 
Review Team 
Timeliness 
II A.L.G.A. 
Contents 
III Review
Objectives      Distribution 
IV Auditing      Communicating Results 
Standards 
Quality & Criteria of
V Results of the
Communications 
Review 
Resolving Management's
Acceptance of Risk 
Association of Local Government Auditors

Results of the Review 
I The Peer
Issue 2 Reports 
Review Team 
Peer Review Report: 
II A.L.G.A. 
Pass 
III Auditing
Standards 
Pass with Deficiencies 
IV Review       Fail 
Objectives 
Management Letter: 
V Results of the
Review        Exceptional performance 
Deficiencies noted 
Suggestions for improvement 
Association of Local Government Auditors