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Figure 1.1—Differences of Opinion (DofO)—Path to Resolution
Jun-2018

Overview

This flow chart shows the different paths to resolution when differences of opinion arise during an audit. The chart is divided into three phases: direct settlement, arbitration, and appeal.

Direct settlement phase:

  • There may be differences within the engagement team and/or differences with those consulted.
  • Consult engagement team, including engagement assistant auditor general.
  • Document the issue, positions, and analysis (template available).
  • Is there a resolution?
  • If there is a resolution, move to the end of the appeal phase:

    • Finalize the difference of opinion documentation for the final position taken and steps taken to implement resolution.

    • Include the final documentation in the audit file and obtain sign-off from the party providing resolution during the arbitration or appeal process.

    • If there is no resolution, move to the arbitration phase.

Arbitration phase:

  • Seek advice from the product leader (if the product leader is the engagement assistant auditor general, then the arbitrator shall be the AAG-Audit Services).

  • There may be differences between the engagement leader and the engagement assistant auditor general.

  • There may also be differences between the engagement leader and the quality reviewer; if so, inform the engagement assistant auditor general.

  • If there is a resolution, move to the end of the appeal phase:

    • Finalize the difference of opinion documentation for the final position taken and steps taken to implement resolution.

    • Include the final documentation in the audit file and obtain sign-off from the party providing resolution during the arbitration or appeal process.

    • If there is no resolution, move to the appeal phase.

Appeal phase:

  • Consult the auditor general for advice.

  • Finalize the difference of opinion documentation for the final position taken and steps taken to implement resolution.

  • Include the final documentation in the audit file and obtain sign-off from the party providing resolution during the arbitration or appeal process.

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