Audit & Risk

Probity Audit and Advisory Services

Our Probity Advisory services safe guards against the risk of unfavourable outcomes from strategic sourcing and procurement.

We use the term Probity Advisor as opposed to Probity Auditor because we formed the view after several projects that the word ‘auditor’ placed more emphasis on post-process whereas we provide independent guidance to advise on probity throughout a process which is intended to guard against probity issues arising. The service is completely independent and the Probity Advisor still needs to be satisfied that a process has been undertaken ethically, with integrity and fairness for all parties before signing-off on a process.

However, there is still an audit role that is integrated into the provision of the service.

For Probity Advisory Services, we always assign a Consulting Director or Lead Consultant with substantial skills, knowledge, expertise and experience and the consultant assigned will run with the project from the beginning to the end. We do not subscribe to what some call the revolving door syndrome where different consultants turn up for meetings because we believe continuity of knowledge throughout the duration of a project is a critical success factor to providing sound advice.

Contract Auditing

Auditing commercial contracts is a core service we provide for many different types of contracts and sectors, particularly for medium-large contractual arrangements.

The scope of contract audits vary according to the contract to be audited and also the focus of the audit.

While this service will determine if there are compliance issues, it is also designed to identify if there are issues with managing commercial contracts, especially if the arrangements are complex, because some contracts can be burdensome to manage, particularly if the resources managing them are involved in other activities. Subtle changes in day-to-day operations can also affect the efficiency and effectiveness of contractual arrangements.

What can happen over time is the implementation of the original intent can shift resulting in misalignment with the contract, measures not sufficiently monitored, or in more extreme cases, the contract largely being set aside, which sets a new precedence.

The consequences can have a material effect on operations and the way in which organisations work together. It can also result in paying more than the contract calls for, resulting in contract leakage, which can come in a variety of forms.

This service will provide greater clarity with the potential to identify opportunities for savings, reduce leakage and improve efficiency and effectiveness.

Auditing contract performance may include but is not limited to

  • Services plans and delivery
  • Compliance
  • Works Plan
  • Services plans and delivery
  • Asset Management Reporting
  • KPI’s

  • Activity and Billing data
  • Insurance
  • Financial Statements
  • Corporate governance
  • Subcontractors
  • Personal management

We have specific skills, knowledge, expertise and experience in PPP, FM, and a wide range of contractual arrangements.

We also have experience in a wide range of sectors as listed in our portfolio.

Operational Performance Audits

Our Operational Performance Audit services are designed to audit all or a part of an organisation’s activities to assess efficiency and effectiveness and focuses on areas such as:

  • The adequacy of an internal control structure or specific internal controls to ensure due regard for economy and effectiveness;
  • The extent to which policies are efficient and effective;
  • The extent to which resources are economic, efficient, and effective;
  • The extent to which business processes are economic, efficient and effective; and
  • The extent to which activities are efficient and effective in achieving organisational objectives.

Risk Management

The identification and assessment of risk in various contexts is an integral component of the projects that AOT Consulting undertakes. The identification and assessment of risks often forms part of a broader project though can be a stand-alone service.

In all projects, the purpose of undertaking risk assessments is to assist organisations to identify the risks initially; consider the strategies to manage those risks and the adequacy of those strategies; and the impact assessments to the organisation.

The approach we take is predicated ISO 31000 / AS 31000 on Risk Management Guidelines, which provides a systematic framework to guide risk identification and assessments.

As part of the risk assessment process, we take into consideration further risk treatments and opportunities for improvement identifying the actions required to reduce potentially high risks. Some of these actions can be incorporated into current planning processes and/or include identification of further responsibilities or resources. The risk assessment processes we have undertaken with the stakeholders have also identified opportunities for improvement.

For any given initiative, the process of undertaking risk assessments does not materially differ. It encompasses the structured elements of determining the context, risk identification, consequences, controls, likelihood, the level of risk and owner of that risk. The assessment includes the effects (both short-term and long-term) and causes; and the scale such as in costs, lead time or quality.

However, whilst the overarching process may not differ materially, the nature of each stage of an initiative is taken into consideration as the risks and the impact of the risks will invariably change depending on the progress of the project and its further refinement. In undertaking an assessment of risks, we identify the assumptions and contingent action to best address and respond to identified threats. Where the identified controls are assessed to be inadequate, we also determine with the client what treatment action plans should be established.