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Audit Buzz Newsletter
October 2025
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Engagement and Office Updates
In this issue, we discuss the fiscal year 2027 (FY27) Risk Assessment process; provide an article on Understanding the Value of Audit Peer Review; and a training opportunity. There is no meeting with the Audit Committee in October.
Prior editions of Audit Buzz are archived here on Office of Auditor General (OAG) website.
As always, we appreciate the cooperation and courtesies extended to our staff by Fairfax County Public Schools (FCPS) management and staff during all past, current, and future audit engagements.
Here is a challenge to test your audit knowledge, before we begin this issue:
Say What You See
OAG's Annual Risk Assessment and Audit Plan
Every year, OAG conducts an independent risk assessment which considers the financial, operational, and reputational risks faced by FCPS. OAG develops its annual audit plan based upon the risk assessment results. Currently, OAG has begun the risk assessment process for the FY27 audit plan.
The risk assessment and annual audit plan prioritize areas by evaluating the associated risks. OAG then determines the FY27 audit plan with the top priorities. The proposed audit plan will first be discussed with the School Board Audit Committee in spring, and then with the School Board in June/July.
Knowledge Hive
Understanding the Value of Audit Peer Review
Imagine getting feedback on your work – not just from your boss, but from someone doing the exact or very similar job at a different organization. That’s the essence of audit peer review. In simple terms, audit peer review is like having another set of experienced eyes look at the audit processes and work. Think of it like getting a second opinion from a doctor.
An independent team of auditors from outside our own organization comes in to assess whether our internal audit function is adhering to professional standards and has a system to ensure we are producing quality audits.
OAG is a member of the Association of Local Government Auditors (ALGA) and receives a peer review every three years from another member. Our auditors help to conduct peer reviews at other audit shops as well, creating a two-way exchange of valuable insights.
Why is Peer Review Important?
While our internal team is deeply familiar with our office, an external perspective can bring fresh insights and identify areas for improvement that might be overlooked internally. Here's why peer review is so valuable:
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Ensuring Quality and Compliance: Peer review helps confirm that the internal audit team is following established professional standards and best practices. This helps provide reasonable assurance that the audits are conducted with due diligence and produce reliable results.
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Identifying Areas for Improvement: The reviewers bring experience from other K-12 and/or local government organizations and can offer valuable suggestions for enhancing the efficiency and effectiveness of the internal audit function. This could involve new methodologies, risk assessment techniques, or reporting practices.
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Boosting Credibility and Trust: A successful peer review provides assurance to management, the audit committee, and other stakeholders that the internal audit function is operating at a high level of quality. This strengthens the credibility of the audit work and the insights it provides.
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Promoting Continuous Improvement: Peer review is not just about checking boxes; it is about fostering a culture of continuous improvement within the internal audit team. The feedback received can be used to learn, adapt, and enhance the value the audit function brings to the organization. Even if an audit organization receives a passing review, there is always something that can be learned.
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Adherence to Professional Standards: OAG follows Generally Accepted Government Auditing Standards (GAGAS) also known as the “Yellow Book”. To be compliant with these standards, we are required to undergo an external peer review every three years.
What Does a Peer Review Involve?
We receive peer reviews from another audit shop in the ALGA. Typical procedures in a peer review include:
- Reviewing the audit shop’s written policies and procedures.
- Reviewing internal monitoring procedures.
- Reviewing a sample of audits and workpapers (audit documentation).
- Reviewing documents related to audit independence, training, and staff development.
- Interviewing auditing staff to assess understand and compliance with quality process and procedures.
In Conclusion:
Audit peer reviews are valuable tools for assessing adherence to professionals standards and promoting continuous improvement. OAG received its last peer review in April 2023 with passing marks, and we look forward to our peer review again this fiscal year and to share the results with all of you.
Did You Know?
OAG Outreach and Education: Continuing Professional Education (CPE) Opportunity - Guardians of the Public Trust: Integrity in Procurement and Audit Relationships
OAG aims at providing quarterly online training to all staff members, covering topics related to mitigating financial and process risks to FCPS. Scenarios will be provided during the training where staff members can take what they learn back to work. OAG is a certified National Association of State Boards of Accountancy (NASBA) Continuing Professional Education (CPE) provider, on behalf of FCPS. FCPS can award employees with CPE credits required to maintain professional certification status.
Course Details: This is a continuation of our training series, “if you want to go fast, go alone; if you want to go far, go together”. This topic addresses the unique ethical considerations in the procurement process: how do procurement and school system professionals manage relationships with vendors, deal with potential conflicts of interest, and ensure a fair and transparent process when they might know the business owners personally? The auditors serve as the guardians of public funds, including topics like fraud detection, reviewing vendor relationships for potential impropriety, and ensuring that purchasing decisions serve the public interest.
Format and Date/Time: Synchronous online training via Zoom, on January 9, 2026 (Friday), from 9am to 12pm. Three CPE credits will be awarded for the entire training.
FCPS employees may sign-up here January 6, 2026 Training.
Upcoming Events
Next Audit Committee Meeting
The next Audit Committee meeting is scheduled for November 17 at 4:00 PM. Please refer to BoardDocs for meeting information once it becomes available.
Fraud, Waste & Abuse Hotline:
(571) 423-1333 (anonymous voicemail)
InternalAudit@fcps.edu (email is not anonymous)
Online Submission Form
[Answer: Recordkeeping]
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