The OIG conducts performance audits in accordance with Generally Accepted Government Auditing Standards (GAGAS). Our audit process generally includes project initiation, planning, risk assessment, field work, reporting, and recommendation follow-up.

Project Initiation

• Establish preliminary audit objectives, scope, staffing, and project needs
• Notify BART management and other appropriate stakeholders of the audit
• Request relevant background information and documentation
• Hold an entrance conference to discuss the audit objectives, process, timing, information needs, and management concerns

Planning

• Gather historical, organizational, operational, financial, and other background information
• Review applicable laws, regulations, policies, procedures, contracts, prior audits, and other relevant criteria
• Interview management and staff and conduct walkthroughs or observations, as appropriate
• Identify relevant industry standards, best practices, and benchmarking opportunities
• Document the results of planning

Risk Assessment

• Identify significant threats and risks related to the audit subject, including potential fraud and waste
• Evaluate relevant internal controls
• Assess the auditee's vulnerability to identified risks
• Develop a risk matrix
• Prepare an Audit Program outlining the work necessary to address the audit objectives

Fieldwork

• Perform the procedures established in the Audit Program
• Gather and analyze sufficient, appropriate evidence to address the audit objectives
• Assess the reliability of data used to support findings and conclusions
• Develop findings, conclusions, and recommendations
• Communicate significant issues with management, as appropriate
• Review completed field work and proposed findings before drafting the report

Reporting

• Prepare a draft report presenting the audit objectives, scope and methodology, findings, conclusions, and recommendations
• Conduct an engagement quality review to verify that report statements are accurate and supported by sufficient, appropriate evidence
• Provide the draft report to management and conduct an exit conference to discuss the audit results
• Make appropriate revisions and obtain management's written response and corrective action plans
• Issue the final report to the BART Board of Directors and release it publicly
• Present and discuss the report with the BART Audit Committee

Recommendation Follow Up

• Obtain management updates and supporting evidence for open recommendations on a semiannual basis
• Review corrective actions and supporting evidence to verify progress and implementation
• Determine the appropriate status of each recommendation
• Report recommendation implementation status through the OIG's annual and semiannual reporting
• Provide the OIG's annual report to the California Legislature