Transcript Standards for Internal Control in the Federal Government

Taking the Mystery
Out of Counting CPE
Kristen Kociolek
Assistant Director
U.S. Government Accountability Office
Harriet Richardson
City Auditor
Palo Alto, CA
Opening Remarks
MODERATOR
R. Kinney Poynter
Executive Director,
NASACT
SPEAKER
Kristen Kociolek
Assistant Director,
Financial Management and
Assurance Team, Government
Accountability Office
ALGA WEBINAR, MARCH 10, 2015
SPEAKER
Harriett Richardson
City Auditor
Palo Alto, CA
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Learning Objectives
• Familiarize participants with the GAO guidance on CPE
• Understand the purpose of Continuing Professional
Education (CPE)
• Understand the CPE requirements and how to measure
them
• Understand how to determine if CPE meets Yellow
Book CPE requirements
• Understand CPE administration requirements
• Identify resources for obtaining CPE
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GAO Guidance
• Competency Standard:
GAGAS 3.69 – 3.81

Specifically, GAGAS
3.76 – 3.81
• GAO Supplemental
Guidance:

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Available at
http://www.gao.gov/
assets/80/76894.pdf
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Purpose of CPE
• “To enhance the auditor’s professional
proficiency to perform audits”
- GAGAS 3.76
• “Structured educational activities with learning
objectives designed to maintain or enhance
participants’ knowledge, skills, and abilities in
areas applicable to performing audits”
- GAGAS 3.77
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Minimum Requirements
• 80 hours every two years


Must directly enhance professional proficiency
Fixed or rolling two-year period
• Minimum of 20 hours each year
• Minimum of 24 hours in subjects directly related to:
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Government auditing
Government environment
Unique environment of the audited entity
• Up to two months for deficiency make up
• No carry over of excess hours
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Who Is Subject to CPE Requirements
• External auditors (e.g., public accounting firms)
• External auditors working for the government entity
• Internal auditors working for the government entity
• All of the above auditors who perform GAGAS audits:

Regardless of position title

Whether full-time or part-time
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Whether employed by the audit organization, a
public accounting or professional services firm, or
self-employed
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Who Is Exempt From CPE Requirements
• Auditors involved only in field work:
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If not involved in planning, directing, or reporting, and
Spend less than 20 percent of their time on audits and
attestation engagements
Must still meet 24-hour government CPE requirement
• External consultants and internal specialists providing
consultation on an audit
• Support staff
• College and university students temporarily employed
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Prorated CPE
• Extended absences or extenuating circumstances:
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Medical/family medical leave
Sabbaticals
Leave without pay
Military service
Disasters
• Newly assigned auditors
• Temporarily employed college and university students
• Prorated based on 6-month intervals
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Measuring CPE Hours
• One CPE hour for each 50 minutes of clock time
• One-half CPE hour for each 25 minutes of clock time,
after earning one CPE hour:
 Round down fractional hours that are less than 0.5 CPE, e.g.,
̴
̴
15 minutes = 0 CPE
40 minutes = 0.5 CPE
• For conferences with individual presentations, divide
total hours by 50, e.g.,
400 minutes ÷ 50 minutes = 8 CPE
 360 minutes ÷ 50 minutes = 7.2, rounded down to 7 CPE

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Measuring CPE Hours
• College/university courses:
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
One semester unit = 15 CPE hours
One quarter unit = 10 CPE hours
• Speakers, instructors, and discussion leaders:


•
One CPE hour for each 50 minutes of presentation time
Two additional CPE hours for each 50 minutes of presentation
time for developing/preparing the training
Articles, books, and other written materials:
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One CPE hour for each hour spent writing
Material must be published
Total may not exceed 20 hours for any two-year period
Example – writing an article for the ALGA Quarterly
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Acceptable CPE – Training Method
• Group programs, such as:
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Internal training (courses, seminars, workshops)
Conferences, seminars, and workshops of professional
organizations
Web-based seminars and audio conferences
Accredited college and university courses (whether for
credit or not)
Structured educational program with learning objectives
at audit organization staff meetings
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Acceptable CPE – Training Method
• Individual study programs, such as:
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Web-based and correspondence courses
Individual self-study guides
• CD, DVD, audio cassette tape, video tape
• Professional activities related to qualified CPE programs:
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Speaker, panelist, instructor, or discussion leader
Developing courses/course materials
Publishing articles/books that contribute directly to the
author’s professional proficiency
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Acceptable CPE
Programs/activities that qualify are based on content:
• Not the presenting organization
• Not the presenter
• Not necessarily the title of the program
• Not necessarily how the presenting organization or
presenter has classified the training
• Not necessarily training approved by the National
Association of State Boards of Accountancy (NASBA)
• Not necessarily CPE that meets licensing, certification,
or other professional organization requirements
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Acceptable CPE
• Based on professional judgment, consider:

Auditor’s experience

Auditor’s responsibilities when performing GAGAS
audits or attestation engagements

The operating environment of the audited entity
• Audit organization responsible for determining if a
subject qualifies as acceptable
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Acceptable CPE: Subjects/Topics
• Paragraph 19 of Guidance document:
Accounting principles and standards/audit standards
 Actuarial techniques and analysis
 Audit documentation preparation and review techniques
 Audit methodologies
 Audit risk and materiality
 Computer security, including general and application controls
 Data analysis
 Ethics and independence
 Finance and finance-related topics
 Fraud, waste, and abuse

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Acceptable CPE: Government Subjects/Topics
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Internal control and internal control assessment
Interviewing techniques
Management, supervision, leadership
Performance measurement and management
Program evaluation
Research methods
Statistical techniques and analysis, including sampling methods
Writing
Applicable sections of a professional certification review course
Sections of meetings of an accounting or auditing standardsetting organization or professional organization devoted to
audits and attestation engagements
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Acceptable CPE: Government Subjects/Topics
• Paragraph 18 of Guidance document:

Accounting, budgeting, financial management, procurement,
contracting, and financial reporting in government
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Government ethics and independence
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Government program management
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Legislative policies and procures
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Fraud, waste, abuse, or improper payments affecting
government entities
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Measuring and reporting the results of government programs
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Risk assessment and risk management for the government
entity
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Acceptable CPE: Government Subjects/Topics

Information technology applications that affect or could affect the
government entity or program
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Government transformation issues
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Subjects and topics directly related to standards used in government
auditing
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Topics in relevant accounting standards, such as the Governmental
Accounting Standards Board (GASB)
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Subjects/topics directly related to the entity under audit

Training that would satisfy the 80-hour requirement but is specifically
tailored to the government environment

Sections of meetings of an accounting or auditing standard-setting
organization or professional organization devoted to the government
environment
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Subjects/Topics That Do Not Qualify
• Paragraph 24 of Guidance document:
 On-the job training
 Basic courses in which the auditor already has knowledge/skills
 Personal development courses, such as resumé writing,
personal investments, money management, retirement planning
 Programs that demonstrate office equipment or software not
used in conducting audits or attestation engagements
 Business sessions at professional organization conferences or
meetings
 Conducting external quality control reviews
 Entity-required courses such as harassment prevention
 Sitting for professional certification exams
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Relationship Between GAGAS and Other
CPE Requirements
• CPE that counts for other professional CPE
requirements may not count as GAGAS CPE:
 Sitting for professional certification exams
 NASBA-approved courses
 Participation in business meetings of professional
organizations
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Training Resources (Partial List)
• Association of Local Government Auditors (ALGA)
 Bay Area Local Government Auditors
 Virginia Local Government Auditors Association
 Washington State Local Government Auditors Association
• Association of Government Accountants (AGA - National
Organization and Local Chapters)
• Association of Airport Internal Auditors (AAIA)
• Association of Certified Fraud Examiners (ACFE)
• Association of Public Pension Fund Auditors (APPFA)
• American Institute of Certified Public Accountants (AICPA)
 State CPA Societies
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Training Resources (Partial List)
• California Association of State Auditors (CASA)
• Graduate School USA – Government Audit Training Institute (GATI)
• Intergovernmental Audit Forums
 National Forum
 Regional Forums
• ISACA (National Organization and Local Chapters)
• National Association of State Auditors, Comptrollers, and Treasurers
(NASACT)
• The Institute of Internal Auditors (The IIA – National Organization
and Local Chapters)
 American Center for Government
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Auditing (ACGA)
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Taking the Mystery
Out of Counting CPE
Yellow Book available at:
http://www.gao.gov/yellowbook/overview
Guidance on GAGAS Requirements for
Continuing Professional Education
available at:
http://www.gao.gov/assets/80/76894.pdf
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Contact Information
• GAO Technical Assistance
[email protected]
202.512.9535
• Kristen Kociolek
[email protected]
202.512.2989
• Harriet Richardson
[email protected]
650.329.2629
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Question & Answer Session
MODERATOR
R. Kinney Poynter
Executive Director,
NASACT
SPEAKER
Kristen Kociolek
Assistant Director,
Financial Management and
Assurance Team, Government
Accountability Office
ALGA WEBINAR, MARCH 10, 2015
SPEAKER
Harriett Richardson
City Auditor
Palo Alto, CA
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