Berkeley Lab

Cooperative Audit Strategy

The Cooperative Audit Strategy was developed by the Office of the Inspector General to improve overall audit coverage at management and operating contractors through maximizing audit coverage using available resources in an appropriate measure.

The Cooperative Audit Strategy Principles as implemented by the Department of Energy (DOE) include:

  • Assuring that the internal audit staffs meet professional auditing standards
  • Providing consistent audit guidance
  • Coordinating audits based on acceptable risk assessment methodology
  • Assessing and tracking the audit work performed at each management and operating contractor
  • Relying on the work of contractor internal audit staffs, when appropriate
  • Improving communications between the OIG, Operations Offices, and contractor internal audit staffs
  • Working with the audit partners to ensure that the Cooperative Audit Strategy is modified to address changing conditions within the Department of Energy

Implementation of Operating Principles:

  • Assessment of contractor internal audit work and transactional testing to enable the OIG to determine if reliance can be placed on the work of the contractor’s audit group.
    • Review of organizational independence, qualifications of audit staff, and, quality of their audit work
    • Generally Accepted Government Auditing Standards and Institute of Internal Auditors Standards used as basis for assessment
    • Participation of contractor’s internal audit staffs in a peer review process
  • OIG provides annual audit guidance in March each year to DOE Operations Offices, OIG staff, and contractor internal audit staffs identifying high risk Departmental audit issues.
  • Risk-based planning process used by OIG and contractor internal audit staffs. The OIG incorporates the internal audit staffs’ audit plans in its risk assessments, and utilizes an automated tracking system to track the work planned and performed by the internal audit staffs.