Overview of audit structure

This page relates to the 2024–27 National Land Transport Programme.

IntroductionBack to top

This page provides general information for approved organisations about the audit structure for the different audits.

Investment audits can be either procedural or technical. These audits generally require 2 to 5 days at the approved organisation to complete.

Factors influencing the duration of the audit and the number of auditors or other people involved include:

• size and complexity of the approved organisation and its land transport network
• planned scope of the audit
• findings during the audit that may require additional investigation.

Procedural investment auditsBack to top

Procedural investment audits of small and medium size approved organisations will usually be performed by one auditor, who may take up to 4 days to complete the audit. Audits of larger or more complex organisations may involve additional auditors and could take 4 or more days to complete.

These audits provide assurance in relation to the systems and processes of the approved organisation and will address the following:

• National Land Transport Programme funding is used for the purpose it was provided.
• The funding is appropriately accounted for.
• NZ Transport Agency Waka Kotahi (NZTA) requirements have been met.
• The contract management best reflects leading practice.
• NZTA procurement procedures are being met.
• Land transport disbursement correctly reflects the land transport expenditure.

Technical investment auditsBack to top

Technical investment audits primarily focus on the management, performance and condition of the network of the approved organisation, including road safety performance and how the network has changed over time. A major part of a technical audit is a drive-over of the network to assess its condition.

Site visits for technical investment audits may take up to 5 days. People involved may include:

• one or more officers from the approved organisation – especially desirable is an officer with an understanding/knowledge of the network maintenance programme
• third parties involved in the development and delivery of the programmes – these can be involved at the council’s discretion
• one to 2 technical auditors
• the local investment advisor from NZTA
• an independent local authority representative from a council with a similar type of network (if possible)
• an independent peer auditor who will accompany the NZTA auditor as required.

The involvement of an independent local authority representative or peer auditor gives a good opportunity for the collegial exchange of ideas, independent assessment with a broader perspective and enhanced application of good practice.