Dedicating the necessary time and resources to prepare your RTO for a regulatory audit is a critical investment. Notification of external audits can come at short notice and RTOs must always be ready to respond effectively and quickly in such an event. An RTO who has implemented a robust system of self-assurance will always be adequately prepared and confident in responding to audit notifications. A proper risk management strategy for RTOs should include a well-defined plan for protecting your organisation against adverse regulatory action.

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Identify your audit lead:

Designate a reliable individual within your RTO (preferably a senior manager) to take responsibility for planning and preparing your organisation’s audit response. The manager in consultation with the CEO should contact the auditor well in advance of the scheduled audit to clarify the responsibilities of both parties. The audit preparation phase is an important time to review your RTOs compliance risks and communicate management’s priorities for managing them appropriately. Communication from top management will have a dramatic effect on your organisation’s ability to prepare for an audit. The RTO leadership must discuss with staff the importance of the audit and what they can expect. Whether you engage an RTO consultant or your organisation internally handles preparation, the final responsibility for your response and the outcome lays with the CEO. Management must galvanise the whole organisation for audit, not just a select few to achieve a successful outcome.

Identify the scope of the audit:

It is essential that you review the audit notification correspondence carefully and thoroughly when received. Seek clarification from the auditor about any aspects you do not understand to gain a clear understanding of how the regulator or funding body intends to conduct the audit process. This understanding will ensure you are clear on what data and records to gather and what resources you need to address the requirements.

Identify records and data to be collated:

Develop an approach for pulling the requested records together in a timely fashion. Set a deadline for staff to provide the documents needed so you have time to review them before finalising your submission. Ensure you do your own checks on the documentation collated so you can confirm they are complete and in an acceptable format. Your process should include retaining your own digital copies of the evidence provided to the auditor. Maintaining a list of what you have submitted to the auditor is essential in ensuring that your RTO can track your records movements. The ultimate in audit readiness is a well-documented system of internal controls that has been tested for effectiveness. While this level of organisation may be above and beyond your business as usual processes, it is a critical component of a well-functioning self-assurance system. When properly designed, a system of internal control can identify risks and provide a framework for discovering non-compliance before it potentially impacts on your products and services.

Prepare staff:

Management must discuss with staff the importance of the audit and what they can expect. Auditors may ask to speak with staff involved in different capacities in your RTO. Management should encourage staff to be honest and straightforward in their communication with the auditors without oversharing or volunteering unsolicited information. You can prepare them well in advance of the audit by familiarising them with typical questions an auditor may ask in an audit scenario. The entry meeting of an audit is typically the best time to clarify and understand the process to be used by the auditors as well as the expectations and anticipated timelines and outcomes. Confirming these details will assist your staff in ensuring a positive audit experience is felt by all involved. Arranging for adequate workspace and access to relevant staff, providing accurate records and data, assessing risks and exceptional organisation are all pieces of the preparation puzzle.

Identify resources:

Determine staffing and space requirements, including whether the auditor will need internet access during the audit interviews in the event of a site audit; arrange for an appropriate space to accommodate the auditor on site and arrange your meeting room as required. You may want to give the auditor a tour of your premises so ensure that everything is as you want to present it. Don’t assume you can provide the auditors with refreshments or catering. In most instances they are not permitted to accept hospitality in an audit scenario. Check with them beforehand what they require.

References:

https://www.asqa.gov.au/how-we-regulate/performance-assessment-audit

https://www.asqa.gov.au/how-we-regulate/performance-assessment-audit/how-prepare-performance-assessment

https://www.asqa.gov.au/rto/renew-registration/how-we-assess

Feature Article: How to prepare for an ASQA performance assessment (regulatory audit)