Exit Conference for 
PORT OF SEATTLE 
Internal Audit Department 
Peer Review 
September 11, 2012 

1

Peer Review Results 
I Peer Review  Government Auditing Standards 
Results
o Pass: complies with Standards 
II Government
Audit
Standards 
International Standards for the
III Internal Audit
Standards         Professional Practice of Internal
Auditing 
IV Conclusion 
o Pass with Deficiencies: partially
Complies with Standards 

Association of Local Government Auditors        2

Government Auditing
Standards Review 
I Peer Review Review encompassed: 
Results
o Written policies and procedures 
II Government            o Internal Monitoring Process 
Audit
Standards         o Sample of audit workpapers 
o Department's independence, training and
III Internal Audit
Standards            staff development 
o Interviews with staff, Audit Committee
IV Conclusion 
liaison, Senior Management 

Association of Local Government Auditors        3

Government Auditing
Standards Results 
I Peer Review Internal Audit Department received
Results
"highest" rating: 
II Government            o "Internal Audit Department's internal quality
Audit                control system was suitably designed and
Standards 
operating effectively to provide reasonable
assurance of compliance with Government
III Internal Audit
Standards            Auditing Standards" 
Management Letter Issued 
IV Conclusion         o Identified areas of excellence 
o Recommended areas of improvement 
o Implement Annual Monitoring of Quality 
o Update Auditor's Handbook 
Association of Local Government Auditors                                              4

Internal Audit Standards 
I The Peer      Review Encompassed: 
Review Team
o Quality Control System 
II Government
o Independence and Audit Department Charter 
Audit
Standards         o Risk Assessment and Annual Audit Plan 
o Required Communication with Audit
III Internal Audit
Standards            Committee 
o Follow up on prior audit issues 
IV Conclusion 
o Sample of audit workpapers 
o Department's independence, training and
staff development 
o Interviews with staff, Audit Committee liaison,
Senior Management 
Association of Local Government Auditors        5

Internal Audit Standards 
I The Peer       Internal Audit Department received
Review Team
"medium" rating: 
II Government            o "except for deficiencies noted below,... the
Audit                internal quality control system was suitably
Standards            designed and operating effectively to provide
reasonable assurance of conformance with the
III Internal Audit
Standards" 
Standards 
IV Conclusion      Deficiencies noted: 
o Update and Implement Audit Charter 
o Provide Mandatory Communications 
o Update Auditor's Handbook 
Association of Local Government Auditors        6

Internal Audit Standards 
I The Peer       Management Letter: 
Review Team
o Identified Areas of Excellence 
II Government
o Recommended Areas of Improvement 
Audit
Standards             o  Update & Implement Audit Department
Charter 
III Internal Audit            o  Provide Mandatory Communication to Audit
Standards 
Committee required by Standards 
IV Conclusion            o Update Auditor's Handbook 


Association of Local Government Auditors        7

Conclusion 
I The Peer      ALGA  and the Peer Review Team
Review Team
would like to commend the Port of
II A.L.G.A. 
Seattle Internal Audit Department for
III Auditing            completing a Peer Review 
Standards 
IV Review
Objectives     Peer Review Team would like to
thank the Port of Seattle for their
V Conclusion
hospitality and professionalism
during the Peer Review process 
Association of Local Government Auditors        8