Australian Quality Audit

AUSTRALIAN
UNIVERSITIES
QUALITY AGENCY
Audit Manual
Version 3.0
June 2006
AUQA Audit Manual, Version 3.0
ISBN 1 877090 53 0
Copyright © Australian Universities Quality Agency 2006
Level 10, 123 Lonsdale Street

Melbourne, VIC, 3000
Australia
Ph 61 3 9664 1000
Fax 61 3 9639 7377
admin@auqa.edu.au
www.auqa.edu.au
The Australian Universities Quality Agency receives financial support

from the Commonwealth, State and Territory Governments of Australia.
TABLE OF CONTENTS
INTRODUCTION .......................................................................................................................................1
PART 1: CONTEXT ...................................................................................................................................3

1. Introduction to AUQA ........................................................................................................................3
1.1 Context for AUQA ..................................................................................................................3
1.2 AUQA’s Objectives.................................................................................................................3
1.3 AUQA Mission, Values and Vision ........................................................................................4
1.3.1 Mission ...........................................................................................................................4
1.3.2 Values .............................................................................................................................4
1.3.3 Vision .............................................................................................................................4
1.4 AUQA Structure ......................................................................................................................5
1.4.1 Members .........................................................................................................................5
1.4.2 Directors .........................................................................................................................5
1.4.3 Staff ................................................................................................................................6
1.4.4 Register of Auditors .......................................................................................................6
1.5 Relations with Other Organisations.........................................................................................6
1.6 Quality Improvement...............................................................................................................7
2. Introduction to Quality Audit ............................................................................................................9
2.1 Quality Audit and AUQA’s Investigations..............................................................................9
2.2 Internally and Externally Derived Objectives .......................................................................10
2.3 National Protocols for Higher Education Approval Processes..............................................11
2.4 Self-Review ...........................................................................................................................11
2.4.1 Value of Self-Review ...................................................................................................11
2.4.2 Nature of Self-Review ..................................................................................................11
2.5 Other Internal and External Reviews.....................................................................................12
2.6 Approach to Audit .................................................................................................................13
PART 2: PROCEDURES .........................................................................................................................15

3. Stages in an AUQA Audit .................................................................................................................15
4. Before the Audit Visit........................................................................................................................19
4.1 The Audit Process..................................................................................................................19
4.2 Initiating the Process .............................................................................................................19
4.3 Panel Selection ......................................................................................................................19
4.4 Self-Review ...........................................................................................................................20
4.5 The Audit Panel’s Investigations (see also sections 3, 5 and 6) ............................................21
4.5.1 The Performance Portfolio ...........................................................................................21
4.5.2 Portfolio Meeting..........................................................................................................21
4.5.3 Preparatory Visit...........................................................................................................22
4.5.4 Following the Preparatory Visit ...................................................................................22
5. The Audit Visit...................................................................................................................................25
5.1 Parameters of the Audit Visit ................................................................................................25
5.2 Typical Visit Format..............................................................................................................25
5.2.1 Panel Preparations ........................................................................................................25
5.2.2 Auditee Preparations.....................................................................................................26
5.2.3 Interview Sessions ........................................................................................................26
5.2.4 Open Session ................................................................................................................27
5.2.5 In-situ Interviews ..........................................................................................................27
5.2.6 Flexibility .....................................................................................................................27
5.2.7 Panel-only Meetings .....................................................................................................28
5.2.8 Exit Meeting .................................................................................................................28
6. The Audit Report ...............................................................................................................................29
6.1 General Parameters ................................................................................................................29
6.2 Audit Report Format and Writing Process ............................................................................29
6.2.1 Format...........................................................................................................................29
6.2.2 Commendations, Recommendations and Affirmations ................................................29
6.2.3 Writing the Audit Report ..............................................................................................30
6.3 Approval of the Audit Report ................................................................................................30
6.3.1 The Definitive Draft .....................................................................................................30
6.3.2 Responsibilities of AUQA Board with Respect to Audit Reports................................30
6.4 The Final Report ....................................................................................................................31
6.4.1 The Public Release .......................................................................................................31
6.4.2 Review of Audit Reports ..............................................................................................32
7. After the Audit Visit ..........................................................................................................................33
7.1 Feedback ................................................................................................................................33
7.2 Sharing Good Practices Identified Through Audit ................................................................33
7.3 Audit Report Implementation ................................................................................................33
7.3.1 Approach to Monitoring ...............................................................................................33
7.3.2 Progress Report.............................................................................................................33
7.3.3 Subsequent Audit..........................................................................................................35
PART 3: INFORMATION FOR AUDITEES.........................................................................................37

8. Notes for Institutions .........................................................................................................................37
8.1 Institutional Audit Scope .......................................................................................................37
8.2 Institutional Audit Panel Composition ..................................................................................37
8.3 Performance Portfolio............................................................................................................38
8.3.1 Scope ............................................................................................................................38
8.3.2 Overall Structure and Format .......................................................................................38
8.3.3 Core Document.............................................................................................................39
8.3.4 Appendices ...................................................................................................................39
8.3.5 Supporting Material......................................................................................................40
8.3.6 Additional Material.......................................................................................................40
8.4 Prior to the Audit Visit ..........................................................................................................41
8.5 Institutional Audit Visit Program ..........................................................................................41
8.5.1 Outline ..........................................................................................................................41
8.5.2 Scope ............................................................................................................................42
8.5.3 Indicative Program for an Institution Audit Visit.........................................................42
8.6 The Audit Report ...................................................................................................................44
9. Notes for Accrediting Agencies.........................................................................................................45
9.1 Agency Audit Scope..............................................................................................................45
9.2 MCEETYA National Protocols and Relationship to AUQA Audits .....................................45
9.2.1 Implementation of the National Protocols Through Legislation ..................................45
9.2.2 Protocol 1 .....................................................................................................................46
9.2.3 Protocol 2 .....................................................................................................................46
9.2.4 Protocol 3 .....................................................................................................................46
9.2.5 Protocol 4 .....................................................................................................................47
9.2.6 Protocol 5 .....................................................................................................................47
9.3 Agency Panel Composition ...................................................................................................48
9.4 Performance Portfolio............................................................................................................48
9.4.1 Scope ............................................................................................................................48
9.4.2 Overall Structure and Format .......................................................................................48
9.4.3 Core Document.............................................................................................................49
9.4.4 Appendices ...................................................................................................................49
9.4.5 Supporting Material......................................................................................................49
9.4.6 Additional Material ......................................................................................................50
9.5 Prior to the Audit Visit ..........................................................................................................50
9.6 Agency Audit Visit Program .................................................................................................50
9.6.1 Scope ............................................................................................................................51
9.6.2 Indicative Program for an Agency Audit Visit.............................................................51
9.7 The Audit Report ...................................................................................................................52
10. Audit Fees...........................................................................................................................................53
PART 4: INFORMATION FOR AUDITORS........................................................................................55

11. Audit Panels — Composition, Characteristics and Actions...........................................................55
11.1 Extended Peer Review...........................................................................................................55
11.2 Auditor Characteristics ..........................................................................................................55
11.3 AUQA Honorary Auditors — Training.................................................................................56
11.4 Roles and Responsibilities of Panel Members.......................................................................56
11.5 Additional Roles and Responsibilities of the Panel Chair.....................................................57
11.6 Additional Roles and Responsibilities of the AUQA Staff Member.....................................58
11.7 Summary Timeline ................................................................................................................59
11.8 Observers on Audit Panels ....................................................................................................60
11.8.1 Purpose .........................................................................................................................60
11.8.2 Policy............................................................................................................................60
11.8.3 Guiding Principles ........................................................................................................61
11.8.4 Procedures ....................................................................................................................61
11.8.5 References ....................................................................................................................62
11.8.6 Approvals .....................................................................................................................62
11.9 Information Gathering Techniques........................................................................................62
11.9.1 The Need for Evidence .................................................................................................62
11.9.2 Sampling.......................................................................................................................62
11.9.3 Tracking or Trailing .....................................................................................................63
11.9.4 Triangulation ................................................................................................................63
11.9.5 Styles of Questioning at Audit Visits ...........................................................................64
12. Conflicts of Interest ...........................................................................................................................65
12.1 Purpose ..................................................................................................................................65
12.2 Policy .....................................................................................................................................65
12.3 Guidelines ..............................................................................................................................66
12.4 Approvals...............................................................................................................................66
13. Privacy of Information and Freedom of Information ....................................................................67
13.1 Privacy of Information Policy ...............................................................................................67
13.1.1 Background...................................................................................................................67
13.1.2 Policy ............................................................................................................................67
13.2 Freedom of Information Policy..............................................................................................69
13.2.1 Purpose .........................................................................................................................69
13.2.2 Background...................................................................................................................69
13.2.3 Policy ............................................................................................................................69
14. Auditing Overseas Activities.............................................................................................................71
14.1 Purpose ..................................................................................................................................71
14.2 Policy .....................................................................................................................................71
14.3 Guidelines ..............................................................................................................................71
14.3.1 Audit Principles ............................................................................................................71
14.3.2 Seven Factors to Consider ............................................................................................72
14.3.3 Implementation .............................................................................................................73
14.4 Approvals...............................................................................................................................74
15. Administrative Arrangements for Honorary Auditors ..................................................................75
15.1 Purpose ..................................................................................................................................75
15.2 Policy .....................................................................................................................................75
15.3 Guidelines ..............................................................................................................................75
15.3.1 Travel Arrangements: Australian-based Auditors ........................................................75
15.3.2 Travel Arrangements: International Auditors...............................................................75
15.3.3 Other Expenses .............................................................................................................76
15.3.4 Alternative Travel Arrangements .................................................................................76
15.3.5 Travel and Medical Insurance and Travel Safety .........................................................76
15.3.6 Accommodation and Expenses.....................................................................................76
15.3.7 Honoraria ......................................................................................................................76
15.4 References..............................................................................................................................77
15.5 Approvals...............................................................................................................................77
15.6 Car Rates Policy 004 .............................................................................................................77
15.6.1 Purpose .........................................................................................................................77
15.6.2 Policy ............................................................................................................................77
15.6.3 Guidelines.....................................................................................................................77
15.6.4 Approvals......................................................................................................................77
PART 5: ANCILLARY MATERIALS....................................................................................................79
ABBREVIATIONS....................................................................................................................................79
BIBLIOGRAPHY......................................................................................................................................80
AUQA Audit Manual, Version 3.0 Introduction
INTRODUCTION
The Australian Universities Quality Agency (AUQA) has four Constitutional Objectives. The first is ‘to
arrange and manage a system of periodic audits of the quality assurance arrangements of the activities of
Australian universities, other self-accrediting institutions and State and Territory higher education
accreditation bodies’. AUQA’s second Objective is to ‘monitor, review, analyse and provide public reports
on quality assurance arrangements in self-accrediting institutions, and on processes and procedures of State
and Territory accreditation authorities, and on the impact of those processes on the quality of programs’ (see
section 1.2 for all four Objectives). This Manual sets out AUQA’s operating procedures with respect to these
two Objectives and is for use by institutions and accrediting agencies, and by AUQA auditors and staff. The
Manual has been structured to assist readers in identifying those sections most relevant to them. For brevity,
where the same observation applies to audits of both higher education (HE) institutions and accrediting
agencies, the term ‘auditee’ is used.
AUQA audits universities and other self-accrediting institutions (SAIs). AUQA also audits the higher
education approvals functions of State and Territory departments or other authorities and of the Australian
Government. These functions encompass the implementation of all five of the National Protocols for Higher
Education Approval Processes of the Ministerial Council on Education, Employment, Training and Youth
Affairs (MCEETYA 2000). In some jurisdictions, these responsibilities are located within a single unit while
in others more than one unit is involved. AUQA uses the term ‘State and Territory accreditation agencies
(STAAs)’ to refer to these bodies collectively. For convenience, AUQA uses the terms ‘accrediting agency’
or ‘agency’ to refer all units responsible for these functions within a single jurisdiction.
AUQA carries out other audits, for example of non self-accrediting institutions (NSAIs). As guidelines for
these audits are still in a developmental phase, this version of the Audit Manual does not specifically address
the processes for NSAI audits. However, NSAI audits conducted by AUQA will be based on the principles
of audit described in this Manual. The advice for auditors contained in the Manual is generally applicable to
audits of all types of higher education institutions and agencies.
AUQA works with each auditee to tailor the process as appropriate.
AUQA does not impose an externally prescribed set of standards upon auditees, but rather uses, as its
primary starting point for audit, each organisation’s own objectives. This approach recognises the auditee’s
autonomy in setting its objectives and in implementing processes to achieve them. The core task of AUQA
Audit Panels is to consider the auditee’s performance against these objectives. In keeping with AUQA’s
orientation towards quality improvement, AUQA emphasises the importance of a critical self-review
undertaken by the auditee as a basis for the audit investigation. Part of AUQA’s vision is that by working
cooperatively with its auditees, AUQA will add value to the activities of these organisations.
AUQA has developed a web-based glossary of quality-related terms which readers of this Manual may find a
useful resource (see: www.auqa.edu.au/qualityenhancement/index.shtml).
USE OF THIS MANUAL
The AUQA Board has agreed that institutions and agencies to be audited in 2007 should follow this version
of the Manual. Auditees for 2006 should continue to follow Version 2.1 but may follow this revised version
if they choose.
In light of the completion of AUQA’s first audit cycle in 2007, it is intended that the Audit Manual will be
reviewed early in 2007 and a further version produced for the use of auditees in the second cycle. The next
version of the Audit Manual will address NSAI audits in detail and will also take account of changes to the
National Protocols for Higher Education Approvals Processes. Users of the Manual are welcome to provide
feedback on the Manual’s utility to AUQA at any stage.
© Australian Universities Quality Agency 2006 Page 1

AUQA Audit Manual, Version 3.0 Part 1: Introduction to AUQA
PART 1: CONTEXT
1. INTRODUCTION TO AUQA
1.1 Context for AUQA
The Australian Universities Quality Agency (AUQA) is a core part of a total national quality assurance (QA)
framework for Australia.
AUQA was established in 2000 by the group of Ministers of Education of Australia and each of the six
States and two Territories, acting jointly through the Ministerial Council on Education, Employment,
Training and Youth Affairs (MCEETYA).
1.2 AUQA’s Objectives
The Objectives of the company as stated in its Constitution are:
1. to arrange and manage a system of periodic audits of quality assurance arrangements

relating to the activities of Australian Universities, other Self Accrediting Institutions
(SAIs) and State and Territory higher education accreditation bodies;
2. to monitor, review, analyse and provide public reports on quality assurance arrangements
in Self Accrediting Institutions, and on processes and procedures of State and Territory
accreditation authorities, and on the impact of those processes on the quality of
programs;
3. to report on the criteria for the accreditation of new universities and non-university
higher education courses as a result of information obtained during the audit of
institutions and State and Territory accreditation processes; and
4. to report on the relative standards of the Australian higher education system and its
quality assurance processes, including their international standing, as a result of
information obtained during the audit process.
AUQA’s core task, set out in Objectives 1 and 2, is to carry out quality audits of Australia’s universities,
other self-accrediting institutions and accrediting agencies. In each case, the audit is of the whole
organisation, and it therefore addresses the effectiveness of the organisation’s quality systems for all its
activities. The audits are conducted as described in this Manual.
AUQA carries out other activities from time to time in fulfilment of Objective 3, drawing on information
from a number of audits. The reports specified by Objective 4 are also occasional productions, based on
information accumulated from a large number of audits, from other public data and from international
sources.
AUQA’s activities as outlined above were originally set out by The Hon Dr D. A. Kemp in December 1999
when Commonwealth Minister for Education, Training and Youth Affairs (Kemp 1999). They were
subsequently embedded in the Constitution of AUQA after it was established by MCEETYA in March 2000.

Part 1: Introduction to AUQA AUQA Audit Manual, Version 3.0
1.3 AUQA Mission, Values and Vision
AUQA has developed the following statements to guide and direct its actions.
1.3.1 Mission
By means of quality audits of universities and accrediting agencies, and otherwise, AUQA will provide
public assurance of the quality of Australia’s universities and other institutions of HE, and will assist in
improving the academic quality of these institutions.
1.3.2 Values
AUQA will be:
• Thorough: AUQA carries out all its audits as thoroughly as possible.

• Supportive: recognising institutional autonomy in setting objectives and implementing processes to
achieve them, AUQA acts to facilitate and support this.
• Flexible: AUQA operates flexibly, in order to acknowledge and reinforce institutional diversity.
• Cooperative: recognising that the achievement of quality in any organisation depends on a
commitment to quality within the organisation itself, AUQA operates as unobtrusively as is consistent
with effectiveness and rigour.
• Collaborative: as a quality assurance agency, AUQA works collaboratively with the accrediting
agencies (in addition to its audit role with respect to these agencies).
• Transparent: AUQA’s audit procedures, and its own quality assurance system, are open to public
scrutiny.
• Economical: AUQA operates cost-effectively and keeps as low as possible the demands it places on
institutions and agencies.
• Open: AUQA reports publicly and clearly on its findings in relation to institutions, agencies and the
sector.
1.3.3 Vision
• AUQA’s judgements will be widely recognised as objective, fair, accurate, perceptive, rigorous and
useful: AUQA has established detailed and effective procedures for audit, that include auditor
appointment and training, extensive and thorough investigation, and consistent implementation.
• AUQA will work in partnership with institutions and accrediting agencies to add value to their
activities: AUQA audit is based on self-review, acknowledges the characteristics of the institution or
agency being audited, and accepts comment from the auditee on the best way of expressing the audit
findings.
• AUQA’s advice will be sought on matters related to quality assurance in higher education: AUQA
will carry out consulting activities, including workshops, publications, and advising, and will publish
and maintain a database of good practice.
• AUQA will be recognised among its international peers as a leading quality assurance agency:
AUQA will build international links to learn from and provide leadership to other agencies, and will
work with other agencies to the benefit of Australian institutions.
Page 4 © Australian Universities Quality Agency 2006

AUQA has committed itself to the Principles of Good Practice for Higher Education Quality Assurance
Agencies, developed by the International Network of Quality Assurance Agencies in Higher Education
(INQAAHE), see www.inqaahe.org. In 2006, AUQA was reviewed against its Objectives and Vision, and
these Principles.
1.4 AUQA Structure
AUQA is established under Corporations Law as a not-for-profit company limited by guarantee.
1.4.1 Members
AUQA’s Members are the nine Ministers responsible for higher education in the Commonwealth, the States
and the Territories. Section 5 of AUQA’s Constitution describes the requirements concerning meetings of
Members of the company. In accordance with Corporations Law, an Annual General Meeting of Members is
held.
1.4.2 Directors
AUQA has a Board of twelve Directors, composed as follows:

• four Directors elected by the Chief Executive Officers of self-accrediting institutions (SAIs)
• one Director elected by the Chief Executive Officers of non self-accrediting institutions (NSAIs)
• three Directors nominated by the Commonwealth Minister responsible for HE
• three Directors nominated jointly by the State and Territory Ministers responsible for HE (at least one
of whom is a person with extensive knowledge and experience of HE accreditation processes), and
• an Executive Director.
The first eleven positions mentioned are appointed by the Members for terms of three years each, while the
last-named is appointed by the Board for such term as the Board determines. The Executive Director is also
Company Secretary.
Details of current Directors are available from: www.auqa.edu.au/aboutauqa/abouttheboard/index.shtml
In summary, the functions of the Board are to:

• appoint the Executive Director of AUQA
• plan the strategic direction for AUQA, having in mind the national and international context, and
within the Objects defined by the Constitution
• determine the policies of AUQA, within the parameters set by the Constitution
• monitor the implementation of the policies by the Executive Director and other staff
• confirm that the operating procedures of AUQA are carried out
• take responsibility for the performance of the organisation, with respect to meeting the Objects of
the company
• appoint auditors to the Register
• approve the release of Audit Reports (see section 6.3.2)
• approve the budget of AUQA
• accept responsibility for the financial performance and reports of AUQA
• submit to the Members an Annual Report of AUQA, including the audited accounts, and
• advise the Members on the Constitution of AUQA.

Part 1: Introduction to AUQA AUQA Audit Manual, Version 3.0
The Board Chair and AUQA staff appoint Audit Panels from the Register, with the Chair acting on behalf of
the Board. In establishing an Audit Panel, the Board delegates to that Panel the responsibility and authority
for carrying out an audit according to Board policies and procedures.
1.4.3 Staff
AUQA has a small permanent staff, appointed by the Executive Director. Audit Directors have a background
in quality and quality assurance in higher education within Australia and internationally. One of the primary
roles of these staff is to serve on Audit Panels and guide and support Panels through all stages of the audit
process. Otherwise, they have responsibility for various portfolios of activity related to the operation of the
Agency and quality enhancement within the Australian higher education sector. A number of other full-time
staff support the work of AUQA and Audit Panels in various capacities.
Staff profiles and contact details are available from AUQA’s website (see www.auqa.edu.au).
1.4.4 Register of Auditors
AUQA has established a pool of people willing to serve on AUQA Audit Panels as honorary auditors (the
Register of Auditors). Honorary auditors can be categorised as belonging to three broad groups: staff from
Australian universities or other SAIs; individuals from Australian business or industry with high-level
experience and understanding of planning and quality assurance; and people based outside Australia (usually
from within a university or quality assurance agency). Characteristics of auditors are defined in section 11.2.
From time to time, the AUQA Board requests institutions and agencies to nominate people to be considered
for appointment and suitably qualified individuals are also welcome to express their interest. Potential
auditors are requested to submit a curriculum vitae and the names of two referees. Referees’ reports are
considered and the Board then selects auditors to be appointed. The term of appointment is two years.
Auditors are trained by AUQA as a pre-requisite of their appointment to the Register. For Australian-based
auditors this involves attendance at a two-day training workshop (see section 11.3).
Photographs and biographies of current members of the Register are available from the AUQA website at
www.auqa.edu.au/qualityaudit/auditors/body.htm.
1.5 Relations with Other Organisations
In carrying out its work, AUQA has developed and maintains links with an extensive network of national
and international agencies and institutions.
Within Australia these include the Australian universities, other HE institutions and accrediting agencies; and
other bodies such as MCEETYA, the Department of Education Science and Training (DEST), State and
Territory government departments, the Australian Vice-Chancellors’ Committee, the National Quality
Council, the Australian Qualifications Framework Advisory Board, professional associations, and staff and
student associations. AUQA is frequently consulted for advice and its staff are often invited to speak at
meetings and conferences.
Major points of contact outside Australia include HE quality agencies, networks of institutions and
organisations active in HE policy such as the Organisation for Economic Cooperation and Development
Programme on Institutional Management in Higher Education (OECD/IMHE) and United Nations
Educational, Scientific and Cultural Organisation (UNESCO). AUQA is a full member of INQAAHE and is
an active participant in the Network’s activities. In addition, AUQA is serving currently as the secretariat for
the Asia-Pacific Quality Network (APQN), a group of quality assurance agencies in the Asia-Pacific region
(see www.apqn.org). In keeping with its Objects, AUQA undertakes international consulting projects as time
allows.

1.6 Quality Improvement
One of the central roles of AUQA is to encourage and assist the growth of an organisational culture in higher
education that values quality and is committed to continuous improvement. This is evidenced in AUQA’s
approach to audit which emphasises self-review and ongoing interaction with auditees after the publication
of an Audit Report.
Other mechanisms used by AUQA for assisting in the improvement of quality in the higher education system
include:
• compiling and publishing information on concepts and practices in QA in higher education
• identifying, recording, codifying and disseminating good practice in higher education through the
AUQA Good Practice Database (www.auqa.edu.au/gp)
• providing advice and consultation
• conducting and commissioning research into quality and standards and their achievement
• identifying and investigating issues of current or likely national concern in relation to quality and
standards
• facilitating inter-institutional discussion through electronic discussion lists and otherwise;
• leading the organisation of the annual Australian Universities Quality Forum
• running seminars and workshops
• publishing papers and articles, and
• making submissions to government and other agencies.
These activities are not restricted to supporting Australian higher education institutions and accrediting
agencies, but are made available as a consulting service within Australia and internationally.

AUQA Audit Manual, Version 3.0 Part 1: Introduction to Quality Audit
2. INTRODUCTION TO QUALITY AUDIT
2.1 Quality Audit and AUQA’s Investigations
‘Quality audit’ is defined as ‘a systematic and independent examination to determine whether activities and
related results comply with planned arrangements and whether these arrangements are implemented
effectively and are suitable to achieve objectives’ (Standards Australia & Standards New Zealand Joint
Technical Committee QR/7 1994) This definition has been adopted by AUQA as the foundation of its
approach to audit.
General thinking about quality has progressed from ‘controlling quality’ in the 1950s, to ‘assuring quality’ in
the 1980s, to ‘managing for continuous quality improvement’ today. This contemporary approach views
quality management as operating an integrated system that enables an organisation to continually reflect on,
and improve, its performance. Cognisant of this, AUQA’s audit method considers four dimensions for any
given issue: Approach, Deployment, Results and Improvement (ADRI).
The ‘Approach’ includes the trail from an organisation’s mission, vision and values through to more specific
goals and objectives and the planned arrangements for how these will be achieved. The latter may culminate
in written policies and procedures. Broad audit questions include:
• What is this organisation about?
• What is it trying to achieve?
• Does it understand its context and capabilities?
• How does it know its objectives are appropriate?
• Are they set against appropriate benchmarks?
• How will the objectives be achieved?
• Is the approach aligned and communicated throughout the organisation and more widely?
In understanding an auditee’s approach, AUQA Audit Panels are likely to discuss with the auditee such
things as the ways in which particular objectives have been decided, the factors that were taken into account
in their development and the stakeholders that were consulted.
The ‘Deployment’ dimension considers whether, and how effectively, the approach is being put into effect.
Broad audit questions include:
• Is the approach being implemented in the best possible manner?
• According to whom?
• How exactly does the organisation know this to be the case?
• If the approach is not being deployed, why not, and how is this managed?
• Are staff appropriately trained, and resources appropriately deployed, to fulfil the approach?
The ‘Results’ dimension looks at an organisation’s results as a means of determining how well the
deployment is achieving the planned approach. Broad audit questions include:
• What are the results for the stated objectives?
• Does the organisation understand why and how it achieved those particular results?
The ‘Improvement’ dimension focuses on whether the organisation is actively and continuously engaged
with understanding its performance in each of the A-D-R dimensions, and is using this understanding to
bring about improvements. Broad audit questions include:
• Does the organisation know how it can improve?
• How does it know this?
• How is it acting upon this knowledge?
It is insufficient to audit only one or a combination of two or three of these dimensions because of their
fundamentally integrated nature. For example, it is insufficient to audit only deployment because this is

Part 1: Introduction to Quality Audit AUQA Audit Manual, Version 3.0
meaningless without considering what the deployment was designed to achieve and what it actually is
achieving. Similarly, it is insufficient to audit only results because the stakeholders, and the organisation
itself, need assurance that the results (and their consequential effects) are achieved by design rather than
by accident. Moreover, even if results look impressive, perhaps they could be significantly better if the
deployment was more effective. In conclusion, AUQA Audit Panels are concerned about both processes
and outcomes.
2.2 Internally and Externally Derived Objectives
As each auditee will have systems that are relevant to its own objectives and character, the actual
procedures used and the way they are implemented will vary from auditee to auditee. Amid this variety,
AUQA’s anchor point for drawing conclusions on quality is always the objectives of the auditee, together
with any externally set objectives. For institutions, such external objectives include those set out in the
Act or Regulation under which the institution is recognised, other relevant legislation, and the National
Protocols for Higher Education Approval Processes (MCEETYA 2000). The Australian Qualifications
Framework is also an important element of the context in which Australian institutions operate.
Accrediting agency objectives include the MCEETYA National Protocols and various other legislated
requirements.
A number of guidelines, codes of practice or codes of conduct relating to specific aspects of HE have
been promulgated by various bodies. Examples include the Australian Vice-Chancellors’ Committee’s
Provision of Education to International Students: Code of Practice and Guidelines for Australian
Universities and MCEETYA’s Good Practice Principles for Credit Transfer and Articulation from
VET to Higher Education. To the extent that such guidelines are adopted by institutions, they become
part of institutional policies (and implicitly, therefore, part of an institution’s objectives). AUQA may
therefore enquire of an institution whether such guidelines have been adopted or adapted and investigate
the extent to which the institution’s objectives in this regard are being met.
Given that AUQA accepts an auditee’s objectives as the starting point of the audit, it is explicitly the
responsibility of the auditee to devise a systematic process for evaluating its objectives with respect to
criteria which may include relevance, desirability, feasibility, distinctiveness, measurability, etc. In order
to check its own policies, procedures and practices, to learn whether it is achieving its objectives, and to
determine how to improve its performance, an institution or agency must have in place appropriate
quantitative and qualitative measures and indicators. Measurements give information about individual
items, but also about processes. For this reason AUQA’s audit is in part process-based, with outcomes
providing information on the effectiveness of the processes. Attention is also paid to inputs, as these are
also integral to the process effectiveness.
Processes are more than documentation, but institutional practice and knowledge must be sufficiently
formalised so that it does not reside solely in the minds of individuals. This approach also incorporates an
appreciation of risk assessment and risk management. Furthermore, the audit is concerned with the
auditee’s self-monitoring to identify the need for and consequences of doing things differently.
It is sometimes claimed that all external review, whether audit, accreditation or assessment, is the enemy
of creativity, since it must err on the side of caution in terms of accepted methods and outcomes. AUQA
avoids this danger by encouraging institutions and agencies to devise their own characteristic quality
management systems and any necessary revisions to them, rather than detailing checklists to be followed.

2.3 National Protocols for Higher Education Approval Processes
In March 2000, MCEETYA approved a set of five National Protocols for Higher Education Approval
Processes. The purpose of setting out these Protocols was ‘to ensure consistent criteria and standards
across Australia in such matters as the recognition of new universities, the operation of overseas higher
education institutions in Australia, and the accreditation of higher education courses to be offered by non-
self accrediting providers’ (MCEETYA 2000 Preface). The Protocols are not set out in full here, but are
available from the MCEETYA website: www.mceetya.edu.au. They are currently being revised.
In auditing an Australian university, AUQA has regard to whether the university’s objectives are
consistent with the established criteria for a university (Protocol 1). In auditing an accrediting agency,
AUQA has regard to whether the agency’s objectives take account of all the Protocols, particularly the
criteria for accrediting higher education courses in non self-accrediting institutions (Protocol 3). AUQA
checks that the agency is using the Protocols when relevant and applying them appropriately. For further
detail, refer to section 9.2.
2.4 Self-Review
2.4.1 Value of Self-Review
AUQA bases each audit on a critical self-review (also referred to as self-evaluation, self-audit) by the
institution or agency subject to the audit. Such a self-review not only enables the auditee to supply the
information required by AUQA, but also has the potential to lead to improvements even without AUQA’s
involvement.
AUQA attempts to be as flexible as possible in scheduling Audit Visits to accommodate the preferences
of individual auditees, within the constraints of AUQA’s resources. To minimise duplication and
repetition, AUQA is also willing to discuss with auditees the format of self-review reports.
Effective quality audit is a composite process that is owned and implemented by both the auditee and the
external quality body, with the latter performing a verification, reporting and enhancement role. AUQA’s
emphasis on meaningful self-review has several merits, including:
• recognition of auditee’s autonomy and responsibility
• recognition of the diversity of auditees
• enabling different approaches to self-monitoring
• initiation and/or maintenance of a process of critical self-development, and
• production of information, some of which may not normally be evident.
The evaluation and checking of the self-review by the AUQA Audit Panel will:
• respect the objectives and values of the auditee
• contribute towards the auditee’s process of self-learning
• for an institution, elucidate how it judges its teaching and research in relation to national and
international standards, and
• for an agency, elucidate how it defines and measures its effectiveness.
2.4.2 Nature of Self-Review
There is no single model for self-review. Indeed, the first decision might be whether an organisation
interprets self-review as a process or as an event. Self-review might be an ongoing process that is built
into all activities in a sense of continuous improvement; it might be an ongoing process that leads to a

Part 1: Introduction to Quality Audit AUQA Audit Manual, Version 3.0
report to the governing body for confirmation or redirection; it might be a long event that leads to major
change; it might be a brief event that provides a snapshot for comparison with an earlier snapshot; and so on.
In the current context, a second dimension for auditees is whether the review (event or process) is
designed principally for the organisation’s internal needs, or primarily in preparation for an AUQA audit.
AUQA strongly urges institutions and agencies to design and implement quality systems that are best
suited to their own needs. The extent to which the organisation builds in explicit awareness of the
existence of occasional AUQA audit should be determined by the approach that is most effective for the
organisation itself. As self-review is an essential feature of an organisation’s quality system, this too
should be designed primarily for the organisation rather than for AUQA.
Regardless of these considerations, some useful questions for an organisation to ask about processes
within its quality system include:
• what are the objectives of the process?
• how do these objectives relate to the organisation’s objectives?
• what are the main steps in the process?
• who has responsibility for the process? Are others also responsible for stages in the process?
• how is the process implemented?
• what documentation is required for, or associated with, the process?
• how is the effectiveness of the process monitored? What indicators are used?
• what is the current state of achievement of the objectives as revealed by the indicators and
monitoring?
• what analysis of the strengths and weaknesses of these quality assurance arrangements is
performed? What does this indicate about the process effectiveness in achieving intended
outcomes?
• what plans are in place (or proposals made) for development or improvement?
AUQA provides advice to assist in quality improvement in the HE sector, and is willing, when possible,
to advise on approaches to self-review.
2.5 Other Internal and External Reviews
Many institutions have developed rigorous internal audit processes that are themselves attuned to
reflection, evaluation and development, and matched to the time and resources available. AUQA takes
into consideration the robustness of such locally devised systems.
Also, by compulsion or choice, institutions are subject to increasing numbers of external quality-related
checks and reviews. There is a variety of models of QA, such as ISO 9000 and quality awards. There are
legal and professional requirements, such as professional accreditation and government audits and reports.
Some institutions find value in obtaining certification or accreditation from international or foreign
agencies, associations or institutions. An institution needs to have these checks integrated into its own
quality system, and to that extent, AUQA’s audit of the institution’s QA processes will embrace these
other reviews as well.
Auditees are free to include in their Performance Portfolio contributions from other groups as evidence of
the achievement of their objectives. Such groups may include professional associations, employers,
students, and community groups. To the extent possible, AUQA takes into account any other internal or
external reviews undertaken by auditees and their results, and integrates them into its own conclusions,
rather than simply duplicating. To assist with this, auditees are requested to provide, in their Performance
Portfolio a schedule of the external and internal quality reviews undertaken in the five year period prior to
the audit (see sections 8.3 and 9.4 for institutions and agencies, respectively).

2.6 Approach to Audit
AUQA emphasises the obligation of all parties to exhibit professional conduct and integrity at all times
throughout the audit process. AUQA expects that auditees will behave appropriately in interactions with
AUQA and in their approach to the audit process. AUQA’s expectations of auditors are described in
section 11.

AUQA Audit Manual, Version 3.0 Part 2: Stages in an AUQA Audit
PART 2: PROCEDURES
3. STAGES IN AN AUQA AUDIT
The following timeline shows the typical sequence and time scale for the stages of an AUQA audit,
starting from the time of selection. Variations may well occur, depending on the context of the audit.
Fuller details on the various stages are given in subsequent sections of this Manual (see especially
sections 1–7).
Note: ‘AD’ (abbreviation of Audit Director) denotes the AUQA staff member on the Audit Panel. This may be the
Executive Director or an Audit Director.
Timeline Activity Agent

At least 9 Auditees are selected for audit AUQA Board
months prior to
Portfolio Auditees are notified of their selection for audit and are invited to AUQA/Auditee
submission provide a short written statement of any particular distinguishing
features or contextual issues that should be taken into account by
AUQA in its selection of possible Audit Panel members (see
section 4.2)
In the case of the audit of an institution, the state/territory minister
is notified of the audit.
Preliminary negotiation of preferred Audit Visit timing begins AUQA/Auditee
At least 3 Auditee asked to review names of potential Panel members for Auditee
months prior to possible conflicts of interest (see section 4.3)
Portfolio
submission
Audit Panel appointed and dates finalised. Details confirmed to AUQA
auditee
Week 1 Performance Portfolio submitted to AUQA Auditee

Performance Portfolio distributed to Panel members AUQA
Hotel and travel bookings made for Panel members to attend AUQA
Portfolio Meeting
Week 3 Panel members provide initial brief written comments on the Panel
Portfolio
Comments circulated to all Panel members AD
Week 4/5 Portfolio Meeting of Panel to discuss approach to be adopted for Panel
the audit (including visits to different campuses, onshore partners
and offshore sites) and identify any further information required.
This meeting occupies a full day.
Panel informed of administrative/travel arrangements for the Audit AD/AUQA
Visit
Week 5 Notes from Portfolio Meeting prepared and preliminary Audit Visit AD/Panel
program drafted. Documentation sent to other Panel members for
rapid comment and response

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Week 6 Draft Audit Visit program, requests for further information required, AD
details of offshore sites to be visited (if any) & parameters for
Preparatory Visit sent to auditee
For Agency Audit Only: AUQA surveys a selection of the AUQA
institutions within the agency’s jurisdiction. Some Panel members Some Panel members
may visit some of these institutions
Finalise program for Preparatory Visit AD/Auditee
Week 6/7 Preparatory Visit: Panel Chair and AD visit auditee to discuss AD/
draft Audit Visit program, requests for further information, logistics Panel Chair/
for Audit Visit & any other related matters Auditee
Week 8 Auditee invoiced AUQA
Week 9 Auditee sends AUQA any further information requested Auditee
Final Audit Visit program sent to auditee AD
Final Audit Visit program and further information requested sent to AD
the Panel
Week 10 Auditee sends provisional list of names and positions of Auditee
interviewees for each Audit Visit session to AUQA for comment
Week 10 /11 For Institution Audit Only: Visits to selected partner operations Some Panel members
(if any)
Week 10/11 For Agency Audit Only: Results of surveys are collated. Follow- AD
up for further information (if necessary)
Week 11/12 Further brief written comments and full interviewee list for Audit AD
Visit sent to Panel members
Panel members send AD comments on further documentation Panel
received
AD and Panel Chair review process AD/
Panel Chair
Week 12/13 For Institution Audit Only: Report of any visit(s) to onshore or AD
offshore partners circulated to all Panel members
Week 14/15 Audit Visit (varies in length from 2 to 5 days; see section 10) Auditee/Panel
Week 16 Panel may comment on style and format of Portfolio and logistics AD
of Audit Visit for information of the auditee
Week 16 All interviewees at the Audit Visit invited to comment on the audit AUQA
Week 16/17 Audit Report drafted and circulated to other Panel members AD
Week 18/19 Panel members return comments on draft report to AD Panel
Week 20/21 Report revised and circulated to other Panel members AD
Week 22/23 Panel members return comments on draft report to AD Panel
Audit Report revised and sent to: AD
i) auditee (for comment on fact and emphasis; see section
6.3)
ii) AUQA Board (for information)
iii) other Panel members (for comment if desired)
Week 25 Auditee responds to definitive draft of Audit Report Auditee
Week 27 Audit Report finalised AD/
Panel Chair
Report sent to AUQA Board for approval of release AD
Week 28/29 Report approved if no objections AUQA Board
Report printed AUQA
Week 29 Report sent to auditee and Panel (embargoed for up to two weeks, AD
as agreed with auditee)

AUQA Audit Manual, Version 3.0 Part 2: Stages in an AUQA Audit
Week 31 Audit Report publicly released AUQA

Placed on AUQA website and distributed to interested
persons/bodies
Week 32+ Feedback on audit process sought by AUQA from auditee contact Auditee/
person and Panel members Panel
AUQA Board Chair telephones vice-chancellor or head of agency AUQA Chair
to invite any brief oral comments to supplement written feedback
Week 32+ Good practices noted for inclusion in the AUQA Good Practice AUQA staff
Database
Short report on the audit prepared for presentation to the next AD
AUQA Board meeting
Approximately AUQA writes to auditee requesting a Progress Report to AUQA AUQA
18 months after showing actions taken in response to the Audit Report.
Audit
Auditee provides the Progress Report, which is considered by
Report release
AUQA.
Auditee
Auditee publishes Progress Report on its own website
AUQA
AUQA provides a link from its website to the Progress Report on
the auditee’s website
Approximately AUQA reviews auditee responses to Audit Report in the context of AD
5 years after the the next audit
Audit Visit

AUQA Audit Manual, Version 3.0 Part 2: Before the Audit Visit
4. BEFORE THE AUDIT VISIT
4.1 The Audit Process
A quality audit is not synonymous or coterminous with the visit of the Audit Panel to the auditee. The
process starts within the institution or agency itself, and should ideally be integrated into the totality of
the auditee’s QA system (see section 2.4). For AUQA, too, there is much more to an audit than the Audit
Visit(s).
AUQA is required to make judgements about the appropriateness and effectiveness of quality assurance
plans and processes, and their relation to nationally and internationally accepted good practices. These
judgements are based in the first place on the Performance Portfolio, then tested and elaborated through
oral (and usually further written) evidence. The oral evidence is gathered during the Panel’s visit(s) to the
auditee.
In order to evaluate the effectiveness of the QA procedures, it is necessary for the auditors to investigate
the results of applying these procedures and they therefore check the extent to which an institution is
achieving its mission and objectives, or an agency is meeting its legislative requirements. Auditees are
expected to have the necessary checking mechanisms in place and be able to demonstrate to AUQA that
the procedures are being used and are working (or that there are plans for addressing any shortfall).
4.2 Initiating the Process
Once the AUQA Board has approved the audit schedule, the Executive Director of AUQA selects one of
AUQA’s academic staff members to assume primary responsibility for each audit. The process of that
audit is then initiated by AUQA approaching the Chief Executive Officer (CEO) of the institution, or the
Departmental Head responsible for the agency, to discuss a mutually acceptable provisional schedule for
the audit. AUQA attempts to arrange with each institution and agency an audit schedule that fits with the
auditee’s own plans. The audit schedule embraces the need for the auditee to carry out whatever self-
review it deems appropriate, prior to the external audit by AUQA. Typical time scales and responsibilities
are set out in section 3. In brief, however, AUQA requires at least three months’ notice of the submission
of the auditee’s self-review report and the Audit Visit takes place approximately three months after the
planned submission date.
AUQA also invites the CEO or Departmental Head to provide a short, confidential written statement (of
approximately 500 words) describing any particular distinguishing features of the institution/agency or
contextual issues that he/she feels should be taken into account by AUQA in its selection of possible
Audit Panel members.
Finally at this stage, the auditee is asked to nominate a person who will be AUQA’s main point of contact
for the operational purposes of the audit.
4.3 Panel Selection
From AUQA’s Register of Auditors (see section 11), AUQA staff and the Chair of the AUQA Board
select potential members for an Audit Panel, bearing in mind the scope of the audit, any special
characteristics of the auditee (including those identified by the auditee itself, see section 4.2 above), and
the need to have a Panel that is coherent and balanced in background and experience. Among other
considerations, the shortlist includes members from within the Australian higher education sector;
members with a background in business or industry; and members from outside Australia. Special
consideration is also given to including prospective auditors with the characteristics required to be Panel
Chair in the shortlist.

Part 2: Before the Audit Visit AUQA Audit Manual, Version 3.0
Once a Panel shortlist has been constructed, the auditee is invited, in confidence, to indicate whether it is
aware of any reason why any of the potential auditors should not be involved in the audit. Valid reasons
could involve known or probable conflicts of interest (see section 12) or inappropriateness for the
character of the auditee. AUQA makes the final decision on Panel composition, taking into account any
valid concerns of the auditee. It also asks prospective auditors to declare formally any matters that could
pose a conflict of interest in their serving as an auditor for the particular institution or agency (see section
12.2). If the prospective auditor responds in the affirmative, AUQA may remove her/him from
consideration, or, having considered the reasons, decide that in fact no conflict exists.
The Audit Panel is then formally appointed. The typical composition of institution and agency Panels is
detailed in sections 8.2 and 9.3, respectively.
One Panel member is appointed by AUQA as Panel Chair, a role which carries with it a number of
additional responsibilities (see section 1.1). The AUQA staff member on the Panel also has a number of
roles in addition to those of other Panel members (for details, see section 11.6). The AUQA staff
member’s first task is to establish, with the auditee and the Panel, the timetable for the Panel’s meetings
and visits and to ensure that appropriate arrangements are made for these. The auditee is also alerted to
the existence of the photographs and short biographies of each Audit Panel member available from the
AUQA website.
As part of its quality improvement and information dissemination roles, AUQA is willing to permit
observers on Audit Panels. At most one observer is permitted on any Panel, and the concurrence of the
auditee and the Panel Chair is required (for policy statement on observers on Audit Panels, see section
11.8).
Unless otherwise arranged, all communication between the auditee and the Audit Panel is via the AUQA
staff member on the Panel.
4.4 Self-Review
As suggested in section 1, AUQA bases its audit on the auditee’s own self-review and its outcomes. The
starting point for self-review, as later for the Audit Panel’s investigation, will be the objectives the auditee
has formulated. The Audit Panel, in evaluating and checking the self-review, will consider the
effectiveness of the auditee’s quality system and the extent to which its objectives are being met. In
general terms, the self-review should address questions implied or suggested by AUQA’s terms of
reference, such as, ‘What are our internal quality procedures?’ ‘Are they appropriate?’ ‘Are they
effective?’ ‘How do we know?’.
In addition to carrying out a self-review and writing a Performance Portfolio, some institutions and
agencies prepare for AUQA audits in other ways such as a ‘trial audit’, conducted by one or more people
internal to the auditee and/or contracted by the auditee for the purpose. As an aspect of self-review, this
can be helpful, and is akin to the widespread use of internally initiated but externally conducted reviews.
However, AUQA does not expect auditees to carry out a preparatory ‘trial audit’. If it is to be undertaken
at all, AUQA suggests that this should be as part of the auditee’s own quality system, not as ‘training for
AUQA audit’.
Students have a vital role in the institutional audit process. AUQA’s view is that because quality is
essentially the responsibility of the institution, the most important involvements for students are
participation in the self-review process and ongoing suggestions for improvement. In addition, AUQA
interviews students extensively during the Audit Visits.
The self-review results in the submission to AUQA of a written portfolio (the Performance Portfolio) that
briefly outlines the auditee’s quality system and an appreciation of its effectiveness, with evidence.

Sections 8.3 and 9.4 set out the anticipated form and content of a Performance Portfolio for institutions
and agencies respectively.
4.5 The Audit Panel’s Investigations (see also sections 3, 5 and 6)
4.5.1 The Performance Portfolio
Once the Performance Portfolio is submitted to AUQA, the staff member on the Panel distributes it to
other members of the Audit Panel. The auditors examine the Portfolio to determine the effectiveness of
the auditee’s quality system, and hence how much detailed checking is required. Even in the case of an
apparently strong system, the Panel will wish to probe selected areas to obtain evidence that internal
control procedures are being applied as described and to check that they are effective. On receipt of the
Portfolio, Panel members are requested to prepare brief written comments which are circulated to the
entire Panel prior to the Portfolio Meeting.
AUQA expects that, within an institution, there should be a broad understanding of and commitment to
the Performance Portfolio. In analogous fashion, an agency’s Performance Portfolio should show
evidence of interaction with the agency’s client institutions, and AUQA consults these stakeholders in the
course of its audit.
The Performance Portfolio may be read at two levels. At one level, the auditor is reading for information
on the auditee’s quality system and forming preliminary views on that system. At another level, the
auditor is forming an opinion on the quality of the self-review and the depth of the analysis itself, and
attempting to answer questions such as:
• How thorough is this Performance Portfolio?
• How perceptive is it?
• Does it show evidence of a genuine, useful self-review?
• Has the data presented been validated, and, if not, how may the Panel do this?
• Does the Portfolio clearly identify strengths and weaknesses?
• Does the Portfolio propose appropriate actions on identified weaknesses?
It cannot be too strongly emphasised that the reporting of an area for improvement in a Performance
Portfolio is not itself a weakness, especially if it is coupled with evidence that the auditee has considered
ways of removing or overcoming the issue. While there may always be some things that only an external
investigation can reveal, the more rigorous the self-review and the more honest and frank the Portfolio,
the less there is for the Audit Panel to detect de novo, and the more the visit can concentrate on
verification and validation.
4.5.2 Portfolio Meeting
Between two and four weeks after receipt of the Performance Portfolio, the Audit Panel assembles for a
one-day meeting at AUQA’s offices (the Portfolio Meeting) to:
• review AUQA’s audit procedures
• discuss the Performance Portfolio in detail
• plan the outline of the audit investigation
• identify any further information or clarification required from the auditee or other sources
• decide which information is needed in advance of, and which at, the Audit Visit
• decide which visits to overseas or local activities (for institutional audits) or to institutions (for
agency audits) will be necessary, and
• decide whom to interview at the Audit Visit(s).

Part 2: Before the Audit Visit AUQA Audit Manual, Version 3.0
The Panel uses this meeting to identify provisionally specific topics for investigation and approaches to
adopt. Sampling for an institution audit may be of particular academic departments or schools, programs
or processes. In the case of an agency audit, the Panel identifies which of the agency’s institutions and
programs to investigate in depth.
A program for the Audit Visit to the auditee is then mapped out by the AUQA staff member in
consultation with other Panel members. The staff member also produces a document detailing the issues
identified by the Panel, grouped by topic, and the requests for further information identified at the
Portfolio Meeting. The list of further information required and the provisional Audit Visit program are
sent to the auditee for discussion at the Preparatory Visit (see section 4.5.3). Further notes for auditors on
the Portfolio Meeting are included in section 11.4.
4.5.3 Preparatory Visit
Two or three weeks after the Portfolio Meeting, the Panel Chair and the AUQA staff member visit the
auditee (the Preparatory Visit). AUQA has four primary purposes for this meeting. They are to:
• discuss the provisional Audit Visit program — check the appropriateness of selections and
combinations of interviewees, clarify the role and responsibilities of various bodies, ensure that the
program for the Audit Visit addresses the Panel’s needs while also being feasible for the auditee,
and, for institutional audits, discuss plans for visits to the auditee’s overseas or local
operations (if the Panel has agreed on such visits)
• discuss the further information required by the Panel — this might typically include questions of
clarification (to which there are usually relatively short answers) and requests for further
documents. The auditee may prepare provisional answers to the questions and assemble possible
documents in advance of the Preparatory Visit, and these can be reviewed at this visit to see
whether they will meet the Panel’s requirements. The Panel and auditee will agree on the most
appropriate means of the auditee providing answers to the questions. This may be orally or in
writing at the Preparatory Visit, or in writing soon after. Some documentation may be made
available on site at the time of the Audit Visit
• check whether there are any sensitive issues of which the Panel should be aware, and
• review the logistics for the Audit Visit (including viewing the proposed meeting room, etc.).
The above activities can usually be achieved by Panel members meeting with the auditee’s nominated
contact person, although the auditee may well wish to involve others. The Preparatory Visit typically
begins with a brief meeting between the Panel members and the CEO (or Departmental Head responsible
for the agency). The AUQA staff member and auditee contact person work closely to produce a suitable
agenda.
The auditee may wish to use the occasion of the Preparatory Visit for its own purposes (such as allowing
a larger group of staff to meet the Panel members). This is quite acceptable to AUQA, provided the
purposes outlined above are also achieved, and on the understanding that the additional activities are not
incompatible with the audit process (that is, they must not constitute a ‘pre-audit’).
4.5.4 Following the Preparatory Visit
Immediately after the Preparatory Visit, the AUQA staff member finalises the exact groupings of staff,
students and external stakeholders to be included in the Audit Visit program and the auditee then
concludes the arrangements for the interviews. A definitive Audit Visit program should be produced no
less than two weeks before the date of the Audit Visit.

During the period between the Portfolio Meeting and the Audit Visit, the activities of the Panel vary
depending on whether the audit is of an institution or agency (for more detail see sections 8.4 and 9.5
respectively).
In the week before the Audit Visit, Panel members produce and send to the AUQA staff member their
comments on the additional documents received since the Portfolio Meeting and may participate in
developing further questions for the Audit Visit interviews.

AUQA Audit Manual, Version 3.0 Part 2: The Audit Visit
5. THE AUDIT VISIT
5.1 Parameters of the Audit Visit
The Panel’s second plenary meeting is the Audit Visit itself. The main purpose of the Audit Visit is to
allow the Panel to test the statements and descriptions in the Performance Portfolio and acquire further
insight into the auditee’s operation through first-hand investigation and personal interaction. Those who
meet the Panel are invited to explain the auditee’s strengths and discuss the difficulties being faced. In
their role as colleagues and peers, Audit Panel members seek to establish a genuine dialogue with those
they meet.
The visit allows the Panel to obtain further evidence and to interpret and judge the evidence it has been
given. This includes, for an institution, such features as the thoroughness of program planning, the
support of students, the support of staff, the attitude of students, the intellectual atmosphere and the
commitment to quality. From a thorough reading and analysis of a considerable amount of documentary
material, the interviews during the Panel visit, and the Panel’s own reflections on them, are the
culmination of the process through which the Panel reaches its conclusions.
The visit program is devised to permit the Panel to carry out such investigations and test such hypotheses
as it feels necessary. Interviewees can reasonably be expected to be asked about anything within the scope
of the audit. The program is sufficiently flexible to give time for the provision of further information or
for the Panel to arrange further interviews with specific people, as the need for these emerges during the
visit.
In accordance with AUQA policy, Audit Panels are not permitted to accept gifts from auditees.
Hospitality provided to the Panel during visits should be moderate.
5.2 Typical Visit Format
The length of an AUQA Audit Visit varies, depending on the size and complexity of the auditee, from
two to five days. (For detail on the typical length of visits to institutions and agencies, see sections 8.5
and 9.6 respectively.) The following sections consider in detail various aspects of a typical visit.
5.2.1 Panel Preparations
The first event of the Audit Visit is often a visit by the Panel to the institution on the day before
interviews formally commence. A tour of the institution’s campus (or campuses) may be included but the
main purpose is for the Panel to inform itself of the further documentation that has been made available
on site.
The second event of the Audit Visit is a private meeting of the Panel. This meeting, usually two or three
hours in length, has several purposes. These are to:
• discuss the further information received since the Portfolio Meeting, including for an agency audit,
the responses to the surveys (see section 3)
• note the availability of further materials for inspection or reference at the site of the visit and any
information obtained as a result of examining this material prior to the private meeting
• share new ideas following further reflection on the Performance Portfolio
• plan, in detail, the approach to be adopted for the interviews (particularly for the first day), and
• review the logistics for the Audit Visit.
By the end of this meeting, there may still be significant disagreements between Panel members on
substantive issues. Such differences must be resolved by the end of the visit, and plans should be made

Part 2: The Audit Visit AUQA Audit Manual, Version 3.0
for questioning and other forms of investigation to achieve this. The Panel Chair and AUQA staff
member on the Panel have particular responsibility for ensuring that resolutions are achieved in Panel-
only sessions during the visit.
5.2.2 Auditee Preparations
To ensure that the institutional community is informed about AUQA and its role, AUQA provides
information to the auditee about the audit process for wide distribution. Biographies and photographs of
Audit Panel members are also available on AUQA’s website. In addition, most auditees brief their staff
about the audit scope and general audit process. AUQA encourages this practice, as it is most helpful if
staff are aware of the purposes of the audit, how it relates to the auditee’s own quality management
system and what may and may not reasonably be expected from the audit process. For instance, AUQA
has no mandate for investigating individual cases or hearing appeals.
In addition to this general briefing, an auditee may wish to hold a meeting of those individuals who will
be interviewed by the Audit Panel. This can be useful to familiarise interviewees with the audit process,
so they can feel at ease and contribute more fully. Such briefings may also occur immediately before each
group of interviewees meets the Panel. Care should be taken, however, to ensure that such preparation
does not slip over from ‘briefing’ interviewees to ‘training’ them in what to say and/or how to behave.
Any such ‘coaching’ is usually very evident to the Panel and may reduce its confidence in interviewees’
responses. In any case, and as noted above, the Panel may ask interviewees about anything within the
scope of the audit, not merely the topics that may seem ‘obvious’ for the particular group.
AUQA finds that auditees sometimes ask each group of interviewees about their experience immediately
after their interview with the Audit Panel. This ‘debriefing’ may be appropriate if it allows interviewees
to report on their experience of the Panel (whether it acted in a professional manner, listened to them, was
courteous, etc.). Indeed, AUQA seeks feedback on such matters each day of the Audit Visit from the
auditee’s contact person. However, AUQA strongly discourages debriefing meetings in which
interviewees might feel obliged to participate and divulge their specific responses to Panel questions.
AUQA provides an assurance that information provided orally to the Audit Panel will not be attributed.
The auditee is expected to respect this aspect of the audit process, which could be undermined by a
detailed obligatory debriefing. It is even less appropriate to expect interviewees from groups that are
somewhat independent of an institution’s management (eg student or staff associations or community
groups) to participate in such debriefing. In addition to any of these considerations, auditees should be
aware that interviewees’ responses in any debrief may not accurately capture what was actually said in the
interview or the context in which it was said.
5.2.3 Interview Sessions
During the Audit Visit, the Panel mostly operates as a single group, but may split into subgroups for visits
to different areas or campuses or for meetings with large groups in lunchtime sessions. While the overall
principle is that the Panel should stay together for interview sessions, the Panel may also split into
subgroups when there would otherwise be a diverse group of interviewees. For institutional audits, brief
visits by individual Panel members to parts of the campus may occur in parallel with the ongoing
interview sessions (see section 5.2.5). Arrangements for such activities are discussed with the auditee at
the Preparatory Visit.
AUQA recognises that interviewees often hold a number of different responsibilities, but in the short time
available to the Panel it is inefficient and unhelpful to see the same person many times. The Panel would
not generally expect to meet anyone more than twice, and preferably only once.
When the group being met is selected from a wider population (for instance, a selection of undergraduate
students, or a selection of community representatives), AUQA may ask the auditee to be responsible for

AUQA Audit Manual, Version 3.0 Part 2: The Audit Visit
making the selection, in line with the parameters set down by the Panel. AUQA will discuss with the
auditee the basis on which it proposes to make the selection. In inviting anyone to meet the Panel, the
auditee should make clear the purpose of the meeting. Indicative programs for institutional and agency
Audit Visits are included in sections 8.5.3 and 9.6.2.
5.2.4 Open Session
The ‘open session’ refers to a period set aside in the program when any interested person may make an
appointment to meet the Panel. This opportunity is advertised by the auditee in advance of the visit, and
each applicant is allocated a short (usually ten-minute) session with the Panel. Typically, about three or
four people make use of the open session. If a large number of people make appointments for the open
session, the Panel may divide into subgroups and meet in parallel. Open session interviews may take
place by tele-conference, particularly for agency audits.
The open session meeting provides a mechanism for input to be provided by individuals outside the
groups and categories identified by the Panel. Due to the short time of appointments in the open session,
those attending are permitted to leave with the Panel a short written statement (no more than a single A4
page) outlining the matters they wish to raise with the Panel. AUQA’s Freedom of Information Policy
(Policy Number 011) is relevant to written submissions (see section 13.2).
Any information received at the open session becomes part of the large amount of information analysed
and evaluated by the Audit Panel in reaching its conclusions. As with any other interview session, an
open session meeting may lead the Panel to request further information of the auditee or seek meetings
with individuals or groups to clarify matters that have been discussed.
5.2.5 In-situ Interviews
An in-situ interview occurs during an Audit Visit to an institution when one or more Panel members walk
around a designated area of a campus, such as a specific faculty, to speak to any staff or students they
choose to approach. These interviews, which are part of the formal Audit Visit, are undertaken to gather
additional evidence on selected topics from persons other than those involved in the scheduled interviews.
Arrangements for in-situ interviews are discussed with the auditee in advance, so the auditee can advise
staff and students that they may be approached by an Audit Panel member. Participation by staff and
students is voluntary.
5.2.6 Flexibility
The Audit Visit program will include sufficient flexibility to allow the inclusion of unforeseen sessions,
the pursuit of leads that emerge during the visit, further discussions with a group or individual seen
earlier, and so on. The AUQA staff member on the Panel maintains regular contact with the auditee
contact person to request further information and arrange any further meetings. As follow-up interviews
typically involve senior managers and can occur on any day of an Audit Visit, auditees should advise of
any periods of non-availability of these staff. Such occasions for seeking further information and
clarifying issues might be included as a short session at the beginning or end of each day.
One or more sessions will be reserved as ‘free for further interviews’ and the Panel may request to see
various staff (again or anew) to check their reaction to issues that have arisen.

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5.2.7 Panel-only Meetings
A private Panel meeting (or review) is typically held after every one or two interview sessions. During
these reviews, the key points from the previous session(s) are agreed on by the Panel. The Panel also
reminds itself of the focus of the subsequent session(s). The buffer period also allows for overrun in some
sessions (although the Panel Chair will be attempting to keep strictly to time). Panel review sessions are
also scheduled to allow Panel members to provide feedback from split Panel sessions and in-situ
interview sessions.
The program includes longer Panel-only meetings, in which ideas and impressions are collated, and plans
made for forthcoming sessions. A major strength of the audit is the exchange that takes place in these
private meetings. Such interchange may well continue over dinner, and for this purpose Panel members
stay at the same hotel and prefer to make their own arrangements for dinners.
In a final private meeting, the Panel gathers up the conclusions it has reached about the auditee. It is
important to reach consensus, so the Audit Report reflects the opinion of the whole Panel, not just
individual members. Assisted by the Panel Chair, the AUQA staff member records all the major points for
inclusion in the Audit Report. Major strengths and instances of good practice are highlighted, while areas
for improvement are addressed constructively. The precise wording is developed later through several
drafts of the Audit Report (see section 6.2.3).
5.2.8 Exit Meeting
A meeting of the Panel with the CEO or Departmental Head responsible for the agency, and possibly
other senior staff, signals the formal conclusion to the Audit Visit.
Based on the written material produced in the Panel’s final private meeting, a brief oral report indicating
in general terms the flavour of the Panel’s observations and conclusions may be provided in the exit
meeting. This is presented by the Panel Chair or AUQA staff member on behalf of the Panel. The Panel
must ensure that the tone and content of the oral report will be consistent with the subsequent full written
report.
The auditee’s staff may ask for clarification, but the meeting is not the opportunity for discussion,
explanation or presentation of further evidence. If matters raised by the auditee at the exit meeting reveal
a serious gap in the Panel’s investigation, the Panel may have further discussion and/or seek further
clarification before the written report is produced. At the exit meeting, the auditee is invited to make any
general comments on its experience of the audit process.
Should the Panel feel unable to make any substantive comment on the audit at this stage, the exit meeting
may be confined to formal leave-taking.

AUQA Audit Manual, Version 3.0 Part 2: The Audit Report
6. THE AUDIT REPORT
6.1 General Parameters
Following the Audit Visit, AUQA produces a public written report on the audit. The Audit Report on an
institution describes the institution’s QA arrangements and their effectiveness. The Report on an
accrediting agency describes the agency’s QA arrangements and the effect of these arrangements on the
educational activities of the institutions within its jurisdiction. The Report outlines the Panel’s findings,
which it has reached through its interpretation of the specific evidence it has gathered. Reports note both
commendable practices and areas for improvement. Reports do not comment on individual people
(positively or negatively) or appeal to irrelevant standards. Reports attempt to address all relevant areas,
but without excessive detail or presuming to be exhaustive.
Audit Reports do not contain statements that cannot be substantiated. Hence, if the Panel has formed the
view that comment on a particular matter needs to be made, it has firm evidence on which to base its
comment. Furthermore, firm views are stated firmly, avoiding excessive subtlety.
The Audit Report is a public document and belongs to AUQA, not to the Audit Panel or its members. The
Panel acts on behalf of AUQA, and hence it is AUQA, and not the Panel, that affirms the conclusions and
makes the Recommendations in the report. Only the Executive Director of AUQA and the Chair of its
Board are authorised to make public comment on audits and Audit Reports.
In the case of an audit that AUQA has conducted on contract for any organisation, the report is provided
to the organisation and becomes the property of that organisation. AUQA reserves the right to become
involved subsequently if it is felt that the organisation is publicly misquoting the report.
6.2 Audit Report Format and Writing Process
6.2.1 Format
All AUQA Audit Reports adopt a similar structure, while also allowing flexibility for each Audit Panel to
present its findings in the manner it considers will be of most assistance to the auditee.
Some common elements across all Audit Reports include:

• an introductory overview providing a background on the conduct of the audit
• summary of findings, consistent with the content and balance of the body of the Report and
containing lists of Commendations, Affirmations and Recommendations
• appendices, including: a brief history and current profile of the auditee (for more detail for
institutions and agencies, refer to sections 8.6 and 9.7 respectively); AUQA’s Mission, Objectives,
Values and Vision; membership of the Audit Panel; and a list of abbreviations and definitions.
The body of each Audit Report is structured as considered most appropriate by the Panel. Often the
structure of the Audit Report reflects the structure of the auditee’s Performance Portfolio. Within each of
the areas discussed, the Report considers: the issue(s) investigated; the auditee’s objectives for this area;
relevant data and evidence; the investigations conducted; and the Panel’s analysis and conclusions.
6.2.2 Commendations, Recommendations and Affirmations
The Panel’s investigations are as attentive to identifying commendable practices as they are to areas for
improvement. Reports typically include both highlighted ‘commendations’ as well as other favourable
comments throughout the text. Where a commended practice is potentially transferable, AUQA
subsequently invites the auditee to prepare an explanation of it for inclusion in the AUQA Good Practice
Database (see www.auqa.edu.au/gp). See section 7.2 for more information.

Part 2: The Audit Report AUQA Audit Manual, Version 3.0
‘Recommendations’ in Audit Reports relate to areas the Panel believes require improvement. The
recommendation will alert the auditee to an area for attention, rather than instructing it to take a particular
action or series of actions. However, some suggestions of possible approaches may be offered by the
Panel. A sub-set of Recommendations is ‘Affirmations’. These relate to areas the Panel believes require
improvement which have already been identified by the auditee, in its Performance Portfolio, as needing
attention. Affirmations are validated by the Panel in the same manner as are Commendations and
Recommendations and, therefore, an auditee must be able to demonstrate the processes and evidence that
it has used to arrive at the decision that improvement is required. Further, the Panel may discuss with the
auditee the action it has taken (or proposes to take) and may comment on its likely effect.
6.2.3 Writing the Audit Report
The writing of the Audit Report is the responsibility of the AUQA staff member on the Panel, in
consultation with other Panel members. An iterative process is followed, allowing for all Panel members
to provide comments as desired. The indicative timetable for the production of the Audit Report is
included in section 3. It should be noted that this process may take more or less time depending on the
particular circumstances of the audit.
6.3 Approval of the Audit Report
6.3.1 The Definitive Draft
When the Panel is satisfied with the report, it becomes a definitive draft and is sent to the institution (the
CEO) or agency (the Director-General/Departmental Head or the Minister) for identification of any errors
of fact and comments on emphasis or expression.
For comments other than the correction of typographical errors, it is most helpful to AUQA if the auditee
provides, for each of its comments: a precise reference to the relevant text in the Audit Report; an
explanation of the point at issue; the background reasoning or evidence to support the comment, and
(where appropriate) a suggested re-wording. A simple four-column table has proved to be a convenient
format.
On receipt of the auditee’s comments on the draft report, the AUQA staff member copies them to other
Panel members and the Executive Director of AUQA. In consultation with the Panel Chair, the AUQA
staff member produces a preliminary version of the final report and discusses this with the Executive
Director and Panel Chair (and with other Panel members as necessary). Further clarification may be
sought from the auditee, if required. If considered necessary or desirable, the AUQA staff member and
Panel Chair may seek a meeting with the auditee.
AUQA’s aim is for the final Audit Report to be as helpful and constructive as possible for the auditee,
while not compromising the Panel’s conclusions or the rigour of the report. In the final analysis, it is
AUQA’s responsibility to report its findings as it sees them. Once finalised, the Audit Report is then sent
by the AUQA staff member to the AUQA Board for approval (rapidly, usually by correspondence). At
each Board meeting, the Audit Reports approved since the last meeting are noted and minuted.
6.3.2 Responsibilities of AUQA Board with Respect to Audit Reports
At the same time as the definitive draft report is sent to the auditee, it is also sent to the AUQA Board
Directors. As the governing body of AUQA, the Board is responsible for setting and ensuring the
achievement of AUQA’s policies. In particular, it is ultimately responsible for Audit Reports, which are
the public face of AUQA’s core activity. Therefore the Board approves the release of each Audit Report.

AUQA Audit Manual, Version 3.0 Part 2: The Audit Report
The purpose of sending the definitive draft to the Board is so that the Directors have adequate time to read
it, and subsequently can quickly approve the final version.
The Board has agreed that it has no basis to question or change the substance of any Audit Report, as it
has not been involved in the audit process. Directors have not seen the audit documents nor participated in
any visits. They are therefore uninformed of the detailed investigations of the Audit Panel, and unable to
comment on the balance of findings that the Panel has decided is appropriate. Furthermore, in considering
an Audit Report they cannot bring into consideration any evidence external to what they read in the Audit
Report itself.
Within these parameters, the Directors’ responsibilities are to:

• ensure that AUQA policies are being adhered to
• identify any statements that appear susceptible to legal action (for example, regarding defamation
or breach of commercial confidentiality), and more generally
• comment if they believe that the report does not appear as thorough and rigorous as would be
expected of an AUQA Audit Report.
However, as senior independent readers of the report, Directors may also be able to comment on whether
the report is clearly expressed and well argued (in its own terms). Since the definitive draft of the report is
seen by the auditee at the same time as by the Board, the scope for revision in response to Directors’
comments on the above matters is limited, but the Panel may make such changes as are considered
appropriate and possible. Any comments made by Directors are noted by staff and in the longer term are
taken into account in a general rather than specific way, and in relation to subsequent audits. Also over a
longer period, Directors may wish to comment to the Executive Director on matters of consistency
between Audit Reports.
6.4 The Final Report
6.4.1 The Public Release
As required in its Constitution, AUQA’s Audit Reports of SAIs and agencies are public documents.
Approximately two weeks before its public release, a copy of the final Audit Report is sent to the
institution (the Chancellor and Vice-Chancellor) or agency (Departmental Head responsible for the
agency or the Minister and to the Chief Operating Officer). This allows the auditee time to prepare any
public comment it may wish to make on the report or its findings. It also allows the auditee to seek a
review of the report (see section 6.4.2). It is the responsibility of the AUQA staff member on the Panel to
negotiate an agreed public release date with the auditee.
AUQA will send copies of the report, under embargo, to selected media several days prior to the release
date in order to enable them to prepare for the publication date. AUQA has no objections to the institution
or agency doing the same with its own media releases.
On its public release, AUQA sends copies of the report to various individuals, including the members of
the Audit Panel; its Members and other relevant people; and to the mass media with an explanatory press
release. The report is also placed in full on AUQA’s website. Since an oral report is typically made at the
end of the Audit Visit, and the auditee has already seen the draft of the report, AUQA does not normally
visit the auditee to present formally the final report. However, AUQA is always willing to work with
auditees, at this or any other time, on quality matters.

Part 2: The Audit Report AUQA Audit Manual, Version 3.0
6.4.2 Review of Audit Reports
The following statement is the AUQA policy on review of Audit Reports (Policy Number 024).
Purpose
AUQA’s whole audit process is designed to ensure that auditees are treated fairly. In addition to the steps
taken before and during the audit process, provision is made for the possibility of a final review that may
be used under exceptional circumstances.
Policy
If, on receiving the final Audit Report, the auditee believes the Report should not be published in its
existing form because it contains gross inaccuracies or misrepresentations, the AUQA Board will consider
a submission from the auditee to this effect, and may approve a revision of the Report.
Guidelines
(i) If, on receiving the final Audit Report, the auditee believes the Report should not be published in
its existing form because it contains gross inaccuracies or misrepresentations, the auditee should
notify the AUQA Board of this before the date agreed for publication.
(ii) The only valid grounds for objection would relate to matters raised by the auditee in its response to
the draft report, or any subsequent changes to the draft report that had not been requested by the
auditee.
(iii) The Board will appoint a review panel of three people, one being a member of the Board.
(iv) The auditee will present to the review panel in writing its reasons for objecting, and its desired
changes to the Report.
(v) The review panel will seek from the Audit Panel its response in writing to this, together with the
evidence for the passages objected to.
(vi) The review panel will interview representatives of the auditee, and the Audit Panel chair and
AUQA staff member from the Panel.
(vii) Legal personnel are not barred from these interviews, but may only assist and not represent any of
the parties. They may speak only by invitation of the chair of the review panel.
(viii) If the review panel determines that any parts of the Report to which objection has been made
should remain, the Report should make reference to this extra review process having occurred, and
the sections should be strengthened to ensure that the evidence accepted by the review panel is
included.
(ix) The (revised) Report is returned to the Board, with the review panel’s recommendation, for Board
approval.
Approvals
This policy was approved on: 26 February 2003.

AUQA Audit Manual, Version 3.0 Part 2: After the Audit Visit
7. AFTER THE AUDIT VISIT
7.1 Feedback
Immediately after the Audit Visit, AUQA may communicate to the auditee any comments from the Panel
on the form and utility of the Performance Portfolio, the logistics of the Audit Visit, and any other
administrative matters. This is to assist the auditee in improving its own processes, and to enhance the
interaction between AUQA and the auditee. At this stage, AUQA also conducts a written survey of
interviewees at the Audit Visit. Arrangements for this survey are discussed with the auditee contact
person.
Once the Audit Report has been published, AUQA invites the auditee’s contact person to provide
feedback on the audit process. The AUQA Board Chair telephones the Vice-Chancellor, CEO or
Departmental Head to invite any brief oral comments. Feedback from Audit Panel members is sought by a
written survey. Panel members are also welcome to provide comments informally to the AUQA staff
member on the Panel or the Executive Director.
This extensive feedback informs AUQA’s own quality improvement. Reports of feedback are made
regularly to AUQA Board meetings.
7.2 Sharing Good Practices Identified Through Audit
As Audit Reports are published, AUQA identifies those Commendations that may be beneficially
transferable to other organisational settings and invites the auditee to write a short explanation of the
practice in a format suitable for inclusion in its online searchable database. These explanations are made
publicly available via the AUQA Good Practice Database (see www.auqa.edu.au/gp).
7.3 Audit Report Implementation
7.3.1 Approach to Monitoring
There is an expectation on the part of society, Commonwealth, State and Territory governments, and
AUQA itself, that an institution or agency will take whatever actions are necessary in relation to AUQA’s
audit findings and Recommendations. Therefore AUQA monitors each auditee’s progress in relation to its
Audit Report. Although, in principle, funding could be at risk if action were not taken, in practice it is the
professional commitment of the auditee that leads to actions and improvement.
AUQA has a continual interest in the auditee’s progress but there is normally only one formal post-audit
reporting requirement, as outlined below.
Where an audit leads AUQA to recommend that the auditee attend to significant issues with urgency,
AUQA may discuss with the auditee additional or different reporting requirements from this typical
pattern, such as an earlier Progress Report. If considered necessary, the auditee may be requested, or may
request, to submit a mini-Performance Portfolio on the issues in question and undergo an audit on these
issues.
7.3.2 Progress Report
Approximately 18 to 24 months after publication of the Audit Report, AUQA writes to auditees to request
a Progress Report against the Recommendations and Affirmations. The Progress Report must be made
publicly available on the auditee’s own website, and should remain easily accessible there for at least
twelve months (although it may be updated if the auditee so desires). AUQA will not attempt to ‘audit’

Part 2: After the Audit Visit AUQA Audit Manual, Version 3.0
the Report, but will focus on whether it clearly shows what the auditee has done in response to the
Recommendations and Affirmations. If AUQA is not satisfied that the response is clear in this respect, it
will request the auditee to improve the public response as necessary. When the Progress Report has been
mounted on the auditee’s website, the auditee will inform AUQA of the URL and AUQA will provide a
link to the Progress Report from the AUQA website.
The following statement is the AUQA policy on Progress Reports (Policy Number 026).
Policy
Approximately 18 months to 24 months after AUQA has published an institution or agency’s Audit
Report, that institution or agency is required to publish a Progress Report outlining actions it has taken in
response to the Audit Report.
Specifically, an institution or agency is expected to report either demonstrable progress against each
recommendation/affirmation, or established plans for addressing the recommendation/affirmation, or
sound reasons why the recommendation/affirmation will not be pursued. The institution or agency may
also wish to report benefits it has been able to derive from commendations.
AUQA’s expectation is that Progress Reports will be sufficiently detailed that an informed person reading
the Audit Report Recommendations and the Progress Report would be able to understand what had been
done and whether it had addressed the issue raised by AUQA.
AUQA does not provide public comment on the Progress Reports and does not audit them. However, it
may discuss aspects of the draft Progress Report with the institution or agency prior to publishing a link
to the final Progress Report on the official AUQA website.
In each case, the Progress Report is included in the scope for that institution’s or agency’s next AUQA
audit.
Guidelines:
• The auditee’s Progress Report is received by AUQA.
• If possible, the Report is considered by the AUQA staff member on the original Panel, and by the
Panel Chair.
• AUQA does not attempt to ‘audit’ the Report, but focuses on whether it clearly shows what the
auditee has done in response to the Recommendations.
• AUQA applies the test: ‘Could an informed person, reading the recommendation or affirmation and
the response, understand what had been done and whether it addressed the issue?’
• If AUQA is not satisfied that the response is clear in this respect, the Executive Director writes to
the CEO of the auditee advising that the Report is unsatisfactory, the reasons, a date for
rectification, and a willingness to discuss the issues.
• If the Progress Report is not rectified, the AUQA Executive Director reports to the AUQA Board,
the Chair of the AUQA Board will write to the CEO of the auditee (with a copy to the relevant
minister) and a consultation process will be set up, using a consultation group.
• The consultation group consists of two members from the auditee (selected by the auditee), one
AUQA staff member, and one AUQA auditor (selected by AUQA).
• Results of the consultation are reported to the AUQA Board for final determination.

AUQA Audit Manual, Version 3.0 Part 2: After the Audit Visit
• The determination may be a mutually agreed course of action, that is then publicised with the
Progress Report on the website.
• The determination may be a lack of agreement and therefore a report to the minister, possibly
recommending a sanction.
• Satisfactory Progress Reports are posted on the auditee’s website, with a link from the AUQA
website.
The link should be directly to the Progress Report, which should remain on the auditee’s website for at
least 12 months from when the link is placed on the AUQA website.
Approvals
This policy was originally approved on: 24 March 2005.
This version was approved on: 5 June 2006.
7.3.3 Subsequent Audit
Approximately five years after the audit, AUQA reviews the auditee’s responses to the audit in the
context of the auditee’s next audit. Since it is hoped that the order of audits will not be fixed from cycle to
cycle, the period could be rather more or less than five years.

AUQA Audit Manual, Version 3.0 Part 3: Notes for Institutions
PART 3: INFORMATION FOR AUDITEES
8. NOTES FOR INSTITUTIONS
The following notes are intended to provide specific guidance to institutions with respect to the audit
scope, typical Panel composition, Performance Portfolio preparation and parameters of the Audit Visit.
8.1 Institutional Audit Scope
As established by AUQA’s Constitution (see section 1.2), audits encompass the quality assurance
arrangements relating to the activities of Australian universities and self-accrediting institutions. AUQA
pays particular attention to the academic activities carried out in the institution’s name.
Indicative scope of an institutional audit includes:

• organisational leadership and governance, planning
• teaching and learning (all modes); processes for program approval and monitoring; comparability
of academic standards in onshore and offshore programs
• research activities and outputs, including commercialisation
• community service activities
• internationalisation, including contracts with overseas partners
• support mechanisms for staff and students
• communication with internal and external stakeholders
• systematic internally initiated reviews (eg of departments, themes), including the rigour and
effectiveness of the review mechanisms employed, and
• administrative support and infrastructure.
8.2 Institutional Audit Panel Composition
Audit Panel members are selected from AUQA’s Register of Auditors bearing in mind the scope of the
audit, any special characteristics of the auditee and the need to have a Panel that is coherent and balanced
in background and experience. To assist in the selection process, AUQA invites the CEO to provide a
short, confidential written statement (of approximately 500 words) describing any particular
distinguishing features of the institution or contextual issues that he/she feels should be taken into account
by AUQA in its selection of possible Audit Panel members. Further general matters concerning the
selection and appointment of Audit Panels are discussed in section 1.
A typical Audit Panel for an institution includes:

• two members from within Australian universities or other SAIs
• an Australian member with high-level experience and understanding of planning and QA in
industry and commerce
• an overseas member (usually from within a university), and
• an AUQA professional staff member (the Executive Director or an Audit Director).
The Australian members from within higher education are not usually from the same state as the auditee.

Part 3: Notes for Institutions AUQA Audit Manual, Version 3.0
8.3 Performance Portfolio
8.3.1 Scope
The Performance Portfolio should set out the auditee’s objectives, plans, strategies, activities, measures
and results. It should include analysis and evaluation, with consequent identification of which processes
are effective and which are deficient. For the last-named, it may foreshadow action. For AUQA, the basic
requirement is that the Performance Portfolio should initiate for the Panel the process of carrying out its
role.
While the audit is always conducted at a particular time within the institution’s existence, it is necessary
for the Panel to understand the development process so that it can comment appropriately on the
achievement of objectives. For instance, for an audit being conducted in 2006, a copy of ‘Strategic Plan
2006–2010’ alone is of limited value to the Audit Panel. In addition to this document, AUQA requires the
previous Strategic Plan, showing the objectives set at that time and the proposed performance indicators,
together with reports against the objectives and values of the performance indicators over the intervening
period. This information then makes the current Strategic Plan more valuable as an indicator of the
revisions made by the institution as a result of its monitoring and results.
8.3.2 Overall Structure and Format
The Performance Portfolio comprises the core document, appendices and supporting material.
Auditees should restrict the material submitted to AUQA to no more than the following:
(i) core document, of no more than 20,000 words
(ii) appendices, preferably of no more than 20 pages, and
(iii) supporting material, which should not exceed one small box.
Auditees are encouraged to keep descriptions as brief as possible, and to use diagrams and flowcharts
where appropriate. Auditees are strongly advised to stay within the maximum word limit. The
covering letter accompanying the Portfolio should state the number of words in the core document.
Nine copies of the Performance Portfolio, including the supporting material, should be submitted to
AUQA in hard copy. The core document and appendices should not be bound and each copy should be
provided in a two-ring binder.
Nine CDs (or USB devices) should also be provided, each containing a copy of the core document, the
appendices and as much as possible of the supporting material. Where the information is available on the
auditee’s website, access may be provided by giving the specific URL of the information on the
institution’s website. From the CD, the core document should hyperlink to the supporting materials and
any URLs which are included in the text.
Institutions may wish to consider making special provision for Audit Panel access to intranet information,
if this would be less duplicative and is deemed appropriate. Plans should be discussed with the AUQA
Information Manager prior to submission of the Performance Portfolio. If intranet access is provided, the
following should be taken into consideration:
• the system needs to be accessible to all Audit Panel members (some members have limited IT
support)
• the appropriate checks need to have been conducted to ensure that access is not hindered by
internal firewall protection
• the facility to print documents is desirable, and
• the facility to save and download documents is desirable.

All copies of the Portfolio should be submitted directly to AUQA. The AUQA staff member on the Panel
is responsible for distributing it to other Panel members.
AUQA expects that the auditee will make its Performance Portfolio publicly available on its website, to
assist the transparency of the audit process. By making the Portfolio available, the auditee ensures that the
Audit Report is able to be viewed in the context of the institution’s own self-review. This in turn
reinforces the value of robust internal review in enhancing quality. The Portfolio should stay on the
website for at least 12 months after publication of the Audit Report.
8.3.3 Core Document
The core document should outline:

• the auditee’s objectives
• the plans the auditee has in place to achieve these
• the systems in place for implementing the plans (including any external QA processes, such as ISO
9000 certification)
• the results being achieved, identifying the links between institutional processes and these results
• the auditee’s analysis of the extent to which objectives are being met and the planned actions as a
result of this analysis, with time-scales.
A glossary of abbreviations, acronyms or terms should be included in the core document. Explicit cross-
references should be made to appendices and supporting material, as appropriate.
8.3.4 Appendices
The appendices include data and factual information, cross-referenced to the core document, and should
primarily be existing documents. The appendices provide evidence for the statements in the core
document.
Basic data and statistics may include:

• values of the key performance indicators
• Graduate Destination Survey (GDS) and other graduate employment data
• Course Experience Questionnaire (CEQ) and other stakeholder satisfaction data
• Postgraduate Research Experience Questionnaire (PREQ) data
• staff (FTE and head count, showing casual/session staff separately) and student numbers (head
count and EFTSL) by faculty/school/department and by division and also by campus/location)
• student entry qualifications
• non-completion rates
• research performance indicators, and
• other relevant performance indicators and measures employed by the institution.
Wherever possible trend data should be provided, indicating progress (or otherwise) towards the
achievement of the institution’s objectives. Reference may be made to national benchmarks if the
institution uses them. Some statistics will already be available in public form and these may be cross-
referenced.

8.3.5 Supporting Material
Supporting material consists of existing institutional documents.
The naming convention for the supporting material should be SM1, SM2, SM3 etc., together with a brief
title, eg SM1 Annual Report. If the supporting material is provided in portable document format (PDF),
the documents should not be protected in such a way that the Title field of the Document Summary
cannot be altered. This is required for the construction of an Adobe Index to facilitate the full-text
searching of the PDFs.
There are a number of standard supporting materials that are required. If not already included in either the
core document or appendices, the following items should be provided:
• a brief description of the institution, including its major characteristics
• an indication of the management and organisational structure in an organisation chart (or
equivalent)
• list of faculties, the schools/departments in each and a list of administrative divisions
• list of campuses and which faculties/schools are represented on each campus
• an outline of the quality management system (which may refer to relevant committees, and their
terms of reference, membership, reporting and executive mechanisms)
• the institution’s schedule of and procedures for reviews (including external reviews, such as
professional body accreditation). The schedule of all reviews over the last five years should be
listed, with dates. (AUQA will select a sample from this schedule and may ask for further
information, such as copies of the actual review reports, recommendations, and subsequent
actions.)
• copies of the most recent Annual Report, Strategic Plan, Educational Profile (and plans such as
Indigenous Plan, Equity Plan, Teaching and Learning Plan, Research and Research Training
Management Plan)
• a copy of the most recent DEST Institutional Assessment Framework analysis for the institution
• list of overseas operations, with names of partner organisation(s) (if any), nature of agreement and
EFTSL
• list of controlled entities (if not in Annual Report), and
• list of external partnerships.
For each of the last three items, each list might contain information such as establishment date, term of
agreement, and statement of purpose.
Where this information is provided in other documentation, it need not be abstracted and presented
separately.
For institutions with extensive overseas activities, the Audit Panel will typically require more detailed
information than suggested here to be able to decide whether to make any overseas visits in the course of
the audit. The AUQA staff member on the Audit Panel will liaise with the institution to obtain this.
Other supporting documents may also be included, if considered necessary or desirable.
8.3.6 Additional Material
The Audit Panel may request documents to exemplify specific processes and activities, such as:
• course or program design, approval and monitoring
• arrangements for establishing joint, off-campus or overseas (transnational) programs
• teaching and learning innovation

• equity, access, credit transfer and recognition of prior learning

• student assessment principles and procedures
• external examiners’ appointments and reports
• staff appointment, probation, development, promotion and appraisal
• seeking and using external input and feedback
• interactions with accrediting bodies such as professional organisations
• unit-level review processes, including follow-up.
8.4 Prior to the Audit Visit
Following submission of the Performance Portfolio, Audit Panel activities include the Portfolio Meeting
and the Preparatory Visit (see sections 4.5 and 4.5.3).
For an institutional audit, during the period between the Portfolio Meeting and the Audit Visit (and
usually after the Preparatory Visit), the Panel or a subgroup of the Panel (usually the Panel Chair and
AUQA staff member) may visit some of the institution’s overseas operations. Details of any overseas
visits would be discussed with the auditee at the Preparatory Visit (see section 14 for AUQA policy and
procedures on auditing overseas activities). Overseas partners may be apprehensive and/or resistant to any
investigations by AUQA if they are unaware of the scope and parameters of the audit. Therefore, AUQA
asks that the auditee provides to the overseas partner(s) whatever introductions and explanations it deems
necessary. AUQA is auditing the Australian institution and its operations, not the overseas partner and
this distinction should be made quite clear to the overseas partner. AUQA is auditing the contract between
the two organisations, and the systems in place for ensuring its implementation.
A staff member of the auditee may accompany the Audit Panel members on the overseas visit (at the
institution’s expense). While AUQA encourages this to occur, it does not require it. Where a staff
member of the institution does accompany the Panel members, he/she is able to facilitate introductions to
the partners visited and may also be invited by the Panel members to attend a formal interview(s) with
them as part of the overseas visit schedule.
8.5 Institutional Audit Visit Program
8.5.1 Outline
The Audit Visit to an institution usually lasts for three days (but may range from two to five days,
depending on the size and complexity of the institution; see section 10). The visit is based at one of the
institution’s campuses, although the Panel may consider that visits to more than one campus or location
are required. During the visit, the Panel meets a range of staff and students, community and employer
representatives, and members of the main committees and selected departments and faculties. The pattern
and nature of visit(s) for an institution with multi-campus and/or off-campus operations is decided by the
Audit Panel for that institution.
During the Audit Visit, the Panel typically operates as a group and does not normally move around the
campus to a great extent, with the exception of in-situ interview sessions (see section 5.2.5). However,
some or all Panel members may individually or as a group visit specific departments or locations.
Arrangements for this are discussed with the auditee at the Preparatory Visit.

8.5.2 Scope
The range of people and groups met during an Audit Visit is related to the issues and hypotheses which
emerge during the Panel’s reading and discussion of the Performance Portfolio. Generally, however, a
Panel may meet the following people or categories of people:
• the Chancellor and some other members of Council
• the CEO (usually the first and last formal meetings are with the CEO. For the latter, the meeting
may include other staff, at the CEO’s discretion)
• members of key committees, such as the senior management group, Academic Board, research
committee who are responsible for development and oversight of policy on quality management
• key people in the institution responsible for the management and operation of the quality system
and subsystems, such as deans, heads of departments and registrars
• staff and students in two or three departments, programs or areas (selected by the Panel)
• a cross-section of students drawn from different levels, disciplines and categories, such as
undergraduates, postgraduates and overseas students. Specific groups may be nominated by the
Panel
• a selection of graduates
• representatives of stakeholder groups from industry, commerce and government, with experience of
the institution and its graduates
• community representatives, and
• individuals who have arranged an appointment with the Panel for the open session (see section
5.2.4).
In addition to these general categories of interviewees, an institution may have specific characteristics that
suggest other groups or different compositions of the groups (or different locations to be visited). Such
characteristics could include, for example, multiple campuses or joint activities with partner institutions
or organisations. Where considered appropriate, people in other locations may be interviewed via tele- or
video-conference.
In most instances the Panel will specify individuals or particular office-holders in the Audit Visit
program. Where the group to be met is a selection from a wider population (for instance, a selection of
undergraduate students), AUQA may ask the institution to be responsible for making the selection, in line
with the parameters set down by the Panel, and will discuss with the institution its proposed selection
method. The institution should consider inviting another relevant body (such as the students’ association
for selecting student representatives) to make, or assist in making, each selection. In inviting anyone to
meet the Panel, the institution should make clear to the individual the purpose of the meeting.
8.5.3 Indicative Program for an Institution Audit Visit
The following is an indicative program for an institution Audit Visit. It is included here to indicate the
range of people typically met by the Panel and the relatively short time that is usually available for each
interview session. In constructing a visit program, each Panel specifies the visit length and individuals or
particular groupings of staff it considers to be most relevant to that institution. Each day of the program is
constructed around some general themes, but interviewees should expect that the Panel may explore with
them anything within the scope of the audit.

Figure 1. Sample program for an Audit Visit of an SAI

Session Time Activity/Group
0.1 Afternoon Panel visits institution to inspect data provided on site.
0.2 5.30–8.00pm Private meeting of Panel to review plans for visit (especially Day 1)
DAY 1 (General Themes: Management and Staff Issues)
1.1 8.30am CEO
1.2 8.45 Members of senior management team
9.30 Review (Panel only)
1.3 10.00 Academic & general staff of Sample Area A (as selected by Panel)
1.4 11.00 Academic & general staff of Sample Area B (as selected by Panel)
1.5 12.15pm Recently appointed academic and general staff (of various levels)
1.6 1.00 Lunch: discussion with undergraduate students; range of levels and disciplines
(including international, mature, class representatives, students from Sample Areas A
& B, etc.) (split Panel)
1.7 2.30 Senior/prominent researchers; postgraduate student supervisors
1.8 3.30 Recipients of teaching awards/grants
1.9 4.00 Members of the Postgraduate Committee; Scholarships Committee
1.10 5.00 Free for further interviews
1.11 5.30 Inspect documents (eg minutes of committees, documentary evidence of quality
processes, handbooks, responses to Panel’s requests for further information)
6.00 Panel review of Day 1
7.00 Panel review of plans for Day 2
8.00 Panel Dinner
DAY 2 (General Themes: Courses, Staff Development and Students)
2.1 8.30am Academic Committee (or group responsible for approval of new programs)
2.2 9.15 Other committee(s) relevant to the structure and QA of the particular institution
2.3 10.30 Unit responsible for academic staff development; members of Teaching & Learning
Committee
2.4 11.30 Selected heads of department (including of Sample Areas A & B)
12.30pm Review (Panel only)
2.5 1.00 Lunch with postgraduate students from a range of degrees and disciplines (split Panel)
2.6 2.30 Officers of student association(s)
2.7 3.00 Tele-conference or video-conference meetings with staff / partners / agents / students
based offshore
2.8 4.00 Open session (for explanation, see section 5.2.4)

7.00 Panel review of plans for Day 3

8.00 Panel Dinner
DAY 3 (General Themes: Research, Facilities, Collaboration and Feedback)
3.1 8.30am Research Committee
3.2 9.15 Library/Information Technology
3.3 10.30 Joint programs — may include meeting some staff from collaborating institutions
3.4 11.00 Split Panel session: individual Panel members make visits to various campus locations
for discussions with staff
12.00pm Review (Panel only)
3.5 12.30pm Chancellor and other external members of Council
3.6 1.00 Lunch with external stakeholders (including employers, professional associations,
alumni) (split Panel)
3.7 2.30 Staff from student support/service areas (including international student office, alumni,
careers, counselling, learning support)
3.8 3.30 Free for further or call-back interviews
6.30 Panel reviews plans for Day 4
DAY 4
4.1 8.30am Inspect further documentation
4.2 9.30 Free for further or call-back interviews
4.3 11.00 Private Panel meeting to finalise conclusions
4.4 12.30–1.00pm Exit meeting with CEO (& possibly others, at the CEO’s discretion)
Most groups should normally contain no more than about eight people. Where the Panel splits for the
lunch sessions, it may meet 20 to 30 people.
8.6 The Audit Report
The typical format of AUQA Audit Reports is considered in section 6. The Audit Report includes as one
appendix a one-page statement intended to give the reader contextual information about the auditee. The
auditee is invited to write this, although AUQA can use publicly available descriptive data if the auditee
prefers. For an institution, this appendix would include historical development, geographical spread and
scope of activity. Such aspects as number of faculties, major strengths or emphasis, student and staff
numbers, number of students overseas, number of research students could be included. Factual successes
may also be mentioned (such as the number of national teaching awards won, amount of external research
funding). The appendix is intended as a descriptive statement and value judgments (such as ‘the
University is the most innovative’) should be avoided.

AUQA Audit Manual, Version 3.0 Part 3: Notes for Accrediting Agencies
9. NOTES FOR ACCREDITING AGENCIES
The following notes are intended to provide specific guidance to accrediting agencies with respect to the
audit scope, typical Panel composition, Performance Portfolio preparation and parameters of the Audit
Visit.
9.1 Agency Audit Scope
State and Territory accrediting agencies have responsibilities under the MCEETYA Protocols (see section
2.3) for the recognition of providers as universities, overseas HE institutions operating in Australia, the
accreditation of higher education award level courses from non self-accrediting providers, jointly
provided programs, and courses provided for overseas students. In auditing these agencies, AUQA checks
the effectiveness of the processes used by agencies to ensure compliance with these Protocols, and the
quality of outcomes from those processes. AUQA looks for evidence that the agency is achieving, or
assisting to achieve, appropriate academic quality and standards in the institutions and programs that the
agency accredits or otherwise endorses under the Protocols. As noted in the Introduction, AUQA uses the
term ‘agency’ to refer collectively to all authorities of a state or territory government which have
responsibilities for implementation of the Protocols.
Where an agency has been approved to audit NSAIs under the requirements of the Higher Education
Support Act 2003 (Cwlth), AUQA audits the agency’s performance of this function.
AUQA’s process of audit of accrediting agencies does not aim to achieve a uniformity of agency services,
but to ensure that the standards and criteria applied to accreditation decisions are consistent across
Australia, and more generally, to facilitate the transparency and comparability of the quality of agency
services. It is concerned also with the processes in place and resources available to the agency to be able
to perform at the required standard. The creative scope of the agencies to respond to their individual
operating environments should not be impaired.
In this overall context, AUQA investigates and reports on:

• the agency’s adherence to the National Protocols and its capacity to impartially and consistently
manage credible HE approval processes under the Protocols (see section 9.2)
• the adequacy of the procedures and practices followed by the agency, and the resources and
expertise available to it, to carry out its functions and meet the requirements of the National
Protocols effectively
• as appropriate, the agency’s implementation of its audit role
• the contribution of the agency’s work to the maintenance and enhancement of the academic quality
of institutions it accredits, and
• the extent to which the agency assures itself of the adequacy of its own procedures.
9.2 MCEETYA National Protocols and Relationship to AUQA Audits
The National Protocols for Higher Education Approval Processes, as they affect the operation of
accrediting agencies or institutions, inform the investigations carried out by AUQA.
9.2.1 Implementation of the National Protocols Through Legislation
The National Protocols are implemented through the enactment of legislation in each jurisdiction. It is the
task of each agency to implement the legislation for its jurisdiction, while it is the task of the AUQA
Audit Panel to investigate the implementation of the Protocols. Therefore, a Panel may need to comment
on the extent to which the legislation addresses the requirements of the Protocols.

Part 3: Notes for Accrediting Agencies AUQA Audit Manual, Version 3.0
AUQA is also interested in the processes for recognition by agencies of the judgements and decisions
made by agencies in other jurisdictions in relation to particular institutions.
9.2.2 Protocol 1
Consideration of Protocol 1 (Criteria and Processes for Recognition of Universities) is explicitly specified
as a task for accrediting agencies. In auditing the accrediting agency, AUQA investigates and reports on:
• the efficacy of the mechanisms used by the agency to protect the title ‘university’, and the agency’s
practices in implementing them
• the adherence by the agency to the nationally agreed definition of an Australian university, and
common criteria and processes for assessing applications, and
• the appropriateness and effectiveness of procedures and practices followed in assessing individual
applications, and the way in which these achieve or assist in achieving academic quality and
standards in the institutions approved as universities.
In some instances, the agency will have an established procedure that is yet to have been used, in which
case AUQA will audit it prospectively. AUQA also checks whether there have been any enquiries (short
of formal applications) and, if so, how the agency dealt with them. In small agencies, it may not be
possible to spend time developing the necessary procedures in case they are needed. In this circumstance,
were the agency to receive an application from a prospective university, AUQA would expect that the
agency would consult with it in developing such procedures or contract another agency to consider the
application.
9.2.3 Protocol 2
Responsibility for implementing this Protocol 2 (Overseas Higher Education Institutions Seeking to
Operate in Australia) is explicitly specified as a task for accrediting agencies. In auditing the accrediting
agency, AUQA investigates and reports on:
• the adoption by the agency of appropriate arrangements, consistent with the Protocols, for
assessing the operation of overseas higher education institutions, and
• the appropriateness and effectiveness of policy, procedure and practices followed in assessing
individual applications, and the way in which these demonstrate that the course and delivery
arrangements are comparable to those offered by accredited Australian providers.
Depending on experience in the jurisdiction with Protocol 2 applications, AUQA may take a similar
approach to that outlined for Protocol 1.
9.2.4 Protocol 3
Protocol 3 (Accreditation of Higher Education Courses to be Offered by Non Self-accrediting Providers)

is the core task of the state and territories accrediting agencies. In auditing the accrediting agency, AUQA
investigates and reports on:
• the efficacy of the mechanisms used by the agency to protect the titles of higher education awards,
and the agency’s practices in implementing them
• the adherence by the agency to the nationally agreed definitions of Australian higher education
awards, and common criteria and processes for assessing applications
• the appropriateness and effectiveness of policy, procedure and practices used in assessing
individual applications, whether the agency is conducting an accreditation process solely for its
own jurisdiction or acting as the receiving agency for a concurrent process, and
• the way in which these procedures and practices achieve or assist in achieving appropriate
academic quality and standards in the institutions approved to deliver courses leading to higher
education awards.

If an agency outsources this task to another agency, the contractual relationship between the parties is
investigated by AUQA.
9.2.5 Protocol 4
Protocol 4 (Delivery Arrangements Involving Other Organisations) applies to delivery arrangements

where a university or SAI is operating in a distant location under its own name, or operating through
another organisation. In both instances, arrangements are subject to AUQA audit as stated in the National
Protocols, para 4.2 and 4.4 (MCEETYA 2000). AUQA investigates and reports on:
• the efficacy of action taken by the agency to implement this Protocol, including regulatory and/or
policy responses, and
• the appropriateness and effectiveness of any reviews (and review outcomes) conducted under para
4.5 and/or 4.6.
AUQA routinely monitors auditee action with respect to its Recommendations. However, it would be
particularly concerned to follow-up matters giving rise to ‘seriously deficient quality … in relation to a
campus in another jurisdiction’ (National Protocols, para 4.5, MCEETYA 2000). Failure to act on such
concerns can trigger Commonwealth funding sanctions (Kemp 1999). It is therefore unlikely that the
‘receiving’ state or territory would need to take action.
‘Universities and other SAIs do not have the power to accredit the courses of other institutions’ (National
Protocols, para 4.6, MCEETYA 2000). Therefore, if an SAI makes its courses available to another
institution, the courses are subject to the external QA regime of the other institution (AUQA if it is a SAI,
or an accreditation agency — via Protocol 3 — if it is a NSAI). It is not stated, but may be assumed, that
the same arrangements apply if the principal institution is a NSAI. In addition, that NSAI itself is subject
to state or territory accreditation.
9.2.6 Protocol 5
Protocol 5 relates to the endorsement of courses for overseas students for the purposes of listing on the
Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS). AUQA audits the
procedures and processes of STAAs for endorsement of courses as suitable for such listing and reports on
the appropriateness and effectiveness of arrangements to ensure that the endorsement of these courses is
given only after relevant requirements have been met. The audit scope includes actions that STAAs are
required to undertake for the purpose of endorsement, including requirements set out in the National
Code of Practice for Registration Authorities and Providers of Education and Training to Overseas
Students (Department of Education, Science and Training 2001).
Whether the course is offered by an SAI or an NSAI, endorsement of the course by the state or territory is
required (National Protocols, para 5.3, MCEETYA 2000) and, in the latter case, the endorsement of the
course is dependent on its accreditation by the accrediting agency (National Protocols, para 5.6,
MCEETYA 2000). If the course is offered by an SAI ‘in special circumstances’ (such as at a distant
location or through an agent), the agency has some additional checks to make (National Protocols, para
5.5, MCEETYA 2000). AUQA’s institutional audits address the processes the institution has in place for
meeting its responsibilities in regard to CRICOS endorsement.

9.3 Agency Panel Composition
Audit Panel members are selected from AUQA’s Register of Auditors bearing in mind the scope of the
audit, any special characteristics of the auditee and the need to have a Panel that is coherent and balanced
in background and experience. To assist in the selection process, AUQA invites the Departmental Head to
provide a short, confidential written statement (of approximately 500 words) describing any particular
distinguishing features of the agency or contextual issues that he/she feels should be taken into account by
AUQA in its selection of possible Audit Panel members. Further general matters concerning the selection
and appointment of Audit Panels are discussed in section 4.
A typical Audit Panel for an agency includes:

• a member who is from another Australian agency and/or has served on a panel for another agency
• a member from within an Australian university or other SAI, and
• an AUQA professional staff member (the Executive Director or an Audit Director).
The member from within an Australian university or other SAI may be from the same state as the agency,
provided no conflict of interest is involved. As a whole, the Panel will have an understanding of
administrative law and government processes, for example, through involvement with professional
associations, Joint Accreditation System of Australia and New Zealand (JAS-ANZ) certifications, the
vocational education and training (VET) sector, school accreditation agencies or otherwise.
9.4 Performance Portfolio
9.4.1 Scope
The Performance Portfolio should set out the auditee’s objectives, plans, strategies, activities, measures
and results. It should include analysis and evaluation, with consequent identification of which processes
are effective and which are deficient. For the last-named, it may foreshadow action. For AUQA, the basic
requirement is that the Performance Portfolio should initiate for the Panel the process of carrying out its
role. It is anticipated that the agency would indicate in the core document of its Performance Portfolio
how its processes ensure the quality of the institutions and programs under its jurisdiction.
AUQA expects that the auditee will make its Performance Portfolio publicly available on its website, to
assist the transparency of the audit process. By making the Portfolio available, the auditee ensures that the
Audit Report is able to be viewed in the context of the agency’s own self-review. This in turn reinforces
the value of robust internal review in enhancing quality. The Portfolio should stay on the website for at
least 12 months after publication of the Audit Report.
9.4.2 Overall Structure and Format
The Performance Portfolio comprises, the core document, appendices and supporting material.
Auditees should restrict the material submitted to AUQA to no more than the following:
(i) core document, of no more than 10,000 words
(ii) appendices, preferably of no more than 20 pages, and
(iii) supporting material.
Auditees are encouraged to keep descriptions as brief as possible, and to use diagrams and flowcharts
where appropriate. Auditees are strongly advised to stay within the maximum word limit. The
covering letter accompanying the Portfolio should state the number of words in the core document.

Seven copies of the Performance Portfolio, including the supporting material, should be submitted to
AUQA in hard copy. The core document and appendices should not be bound and each copy should be
provided in a two-ring binder.
Seven CDs (or USB devices) should be provided, each containing a copy of the core document,
appendices and as much as possible of the supporting material. Where the information is available on the
auditee’s website, access may be provided by giving the specific URL of the information on the agency’s
website. From the CD, the core document should hyperlink to the supporting materials and any URLs
which are included in the text.
All copies of the Portfolio should be submitted directly to AUQA. The AUQA staff member on the Panel
is responsible for distributing it to other Panel members.
9.4.3 Core Document
The core document should provide a brief guide to the whole Performance Portfolio, and may outline, in
brief, the approach taken to the self-review. The document should be a concise summary of the agency’s
quality assurance arrangements and systems, embracing the scope of the audit, and set in the context of
the auditee’s responsibilities and special characteristics. It should provide an analysis of the effectiveness
of the current quality system and should identify any areas where changes may be needed.
A glossary of abbreviations, acronyms and terms should be included in the core document. Explicit cross-
references should be made to appendices and supporting material, as appropriate.
9.4.4 Appendices
The appendices include data and factual information, cross-referenced to the main document and should
all be existing documents. They contain the evidence for the statements in the main document.
Typical information includes:

• list of agency staff members, including professional qualifications and experience
• list of Board members, if applicable, and contact details
• list of Panel members and contact details, including email addresses, and noting those who have
served as Panel Chair
• flowcharts/diagrams illustrating the process and typical timeframe for considering proposals
• the number of rejections, appeals and complaints (by year, over the past five years)
• description of the agency’s documentation management systems
• statement on funding and on calculation of accreditation fees, and
• basic statistics illustrating activity in relation to the five Protocols.
9.4.5 Supporting Material
Supporting material consists of existing documents that are essential for the Audit Panel to understand the
particular nature of the auditee.
The naming convention for the supporting material should be SM1, SM2, SM3 etc., together with a brief
title, eg SM1 Annual Report. If the supporting material is provided in portable document format (PDF),
the documents should not be protected in such a way that the Title field of the Document Summary
cannot be altered. This is required for the construction of an Adobe Index to facilitate the full-text
searching of the PDFs.
The following items should be provided:

(i) relevant legislation; mission statement and objectives of the agency; ownership and governance
(including responsible government authority)
(ii) table showing a complete schedule of institutions and programs accredited in the previous five
years with, in each case, the date of first accreditation, the date of the most recent (re-)
accreditation, and the email address and other details of the contact person in each institution
(iii) table showing the schedule of institutions endorsed on CRICOS to deliver higher education courses
to overseas students for the last five years, and the email address and other details of the contact
person in each institution, and
(iv) copy of the most recent Annual Report.
Other supporting documents may also be included, if considered necessary or desirable. For instance,
documents exemplifying the effectiveness of operation of the QA systems may be provided. These
examples should be chosen to illustrate a broad and representative range of systems and procedures.
Instances of particularly good practice should also be included. Where the illustration involves a number
of documents (eg tracing a survey, data obtained, analysis, dissemination and action; or the steps in
considering and acting on an external review), the relationship between the documents submitted should
be indicated. Areas and issues that might be exemplified include:
• records of action taken on enquiries, applications or submissions made by institutions under the
five Protocols and applicable legislation in the jurisdiction
• actions directed towards improvement of quality in institutions, and
• international operations of institutions.
9.4.6 Additional Material
The Panel may request additional material relevant to its investigations, either prior to or at the time of the
Audit Visit.
9.5 Prior to the Audit Visit
Following submission of the Performance Portfolio, the Audit Panel activities include the Portfolio
Meeting and the Preparatory Visit (see section 4.5).
For an audit of an agency, the period between the Portfolio Meeting and the Audit Visit is used by the
Panel to undertake a number of data-gathering activities. These may include:
• inviting comment by way of a written survey (or otherwise) from the institutions within the
agency’s jurisdiction, the State/Territory Minister and Director-General/Departmental Head
responsible for the agency, and agency panel members (especially panel chairs)
• requesting further paper trails relating to the submissions from NSAIs, and the agency’s consequent
actions and decisions
• obtaining further input from a sample of academics, administrators and students of the NSAIs
(probably by email or telephone)
• visiting any of the institutions within the agency’s jurisdiction (such visits may be undertaken by
individual members of the Audit Panel).
9.6 Agency Audit Visit Program
The Audit Visit to an agency usually lasts for two days and takes place at the/an office of the agency. The
Panel interviews staff of the agency, the institutions, the responsible ministry, students, and community
and employer representatives. The Panel may visit one or more of the institutions accredited by the
agency.

9.6.1 Scope
The governance, administrative and organisational structures of the accrediting agencies vary
significantly, as does the size of each operation, and the Audit Visit program will vary accordingly. The
Panel is likely to interview some or all of the following people:
• staff of the agency
• panel members and chairs used by the agency
• academic and administrative staff from the agency’s institutions
• the State/Territory Minister and/or other decision-maker, and
• staff of other agencies.
A large number of these interviews may be carried out by tele- or video-conference.
9.6.2 Indicative Program for an Agency Audit Visit
The following is an indicative program for an Audit Visit for an agency. The precise specification of
interview groups and the length of the visit will be determined by each Audit Panel.
Figure 2. Sample program for an Audit Visit of an agency

Session Time Activity/Group
0.1 5.30–8.00pm Panel may read documents provided on site (or this may occur at a later point).
Private meeting of Panel to review plans for visit (esp. Day 1)
DAY 1 (General Theme: Agency Management and Staff)
1.1 8.30am Welcome (Director-General or Departmental Head)
1.2 9.00 CEO
1.3 9.45 Other staff of the agency
1.4 11.15 Local panel members used by the agency
1.5 12.00pm Interstate panel members used by the agency
12.30 Lunch and review (Panel only)
1.6 2.00 Panel Chairs used by the agency
1.7 3.00 Inspect documents (eg minutes of committees, documentary evidence of quality
processes, etc.)
1.8 4.00 Open session (for explanation; see section 5.2.4)
5.00 Panel reviews Day 1
6.00 Panel reviews plan for Day 2
7.00 Panel Dinner
DAY 2 (General Theme: The Institutions and Other Agencies)
2.1 8.30am Staff from one of the agency’s institutions (as selected by Panel)
2.2 10.00 Staff from another of the agency’s institutions (as selected by Panel)
2.3 11.30 Staff of other agencies
12.30pm Lunch and review (Panel only)
2.4 1.30 Minister and Ministry officials


2.6 2.30 Free for further interviews
3.30 Private Panel meeting to draft conclusions
2.7 5.00–5.30 Exit meeting with CEO/Director-General or Departmental Head
(& possibly others)
9.7 The Audit Report
The typical format of AUQA Audit Reports is considered in section 6. The Audit Report includes as one
appendix a one-page statement intended to give the general reader contextual information about the auditee.
The auditee is invited to write this, although AUQA can use publicly available descriptive data if the auditee
prefers. Generally, the appendix will include the history and background of the agency, and may provide an
overview of its roles and functions. The appendix is intended as a descriptive statement and value judgments
(such as ‘the Agency is the most innovative’) should be avoided.

AUQA Audit Manual, Version 3.0 Part 3: Audit Fees
10. AUDIT FEES
AUQA’s audit fees are based on recovering the approximate direct costs associated with the audit.
Principally this consists of travel, accommodation, communication, and honoraria for the auditors who are
not AUQA staff members.
The most significant variable in determining the audit fee is the length of the Audit Visit to the auditee. A
two-day Audit Visit will normally suffice for an accrediting agency. While recognising that size and
complexity are not necessarily linked, a three- or possibly four-day Audit Visit will probably suffice for
institutions with less than 20,000 effective full-time students (EFTS). For larger institutions, the Audit
Visits will generally be four or five days in duration.
These parameters are merely for the guidance of Audit Panels, and each Panel, in consultation with the
respective auditee, will decide on what is needed. Experience indicates that while AUQA seeks to keep
the time to a minimum, auditees are often keen to extend the range and increase the number of people
interviewed by the Audit Panel.
The AUQA Board has agreed that 2006 audit fees for audits of universities and agencies are as follows:
Audit Visit length 2 days 3 days 4 days 5 days

Fee (including GST) $48,000 $54,000 $59,000 $65,000
For non-university SAIs, a discounted fee of $40,000 applies.
For NSAIs, AUQA also recovers recurrent costs (primarily staff time). However, a smaller Panel, with no
overseas member, usually suffices. Indicative NSAI audit fees for 2006 are:
Audit Visit length 1 day 2 days 3 days

Fee (including GST) $43,000 $48,000 $52,000
NSAIs should regard these figures as indicative. The actual fee will be negotiated, taking into account the
scale and complexity of the individual NSAI’s operations, including operations in more than one
jurisdiction.
As indicated in section 4, auditees are typically invoiced between the time of the Preparatory Visit and the
Audit Visit. However, AUQA is willing to discuss convenient arrangements with individual auditees.

AUQA Audit Manual, Version 3.0 Part 4: Audit Panels
PART 4: INFORMATION FOR AUDITORS
11. AUDIT PANELS — COMPOSITION, CHARACTERISTICS AND ACTIONS
11.1 Extended Peer Review
External audit is not neutral, but helps to construct definitions of quality and performance as well as
monitoring them (Power 1994), and AUQA carries out its audits by a process of extended peer review.
The term ‘peer’ means ‘a person or group with similar knowledge, skills, experience and status in the
relevant context’ (Woodhouse 1994). In academia, it often means simply ‘another academic’, and more
generally it often denotes someone in the same professional field. However, this can engender public
suspicion of peer review, and a feeling that peer review does not result in independent objective
judgements, but that the reviewers are more inclined to conceal their colleagues’ defects.
To avoid both this effect and the suspicion of this effect, AUQA has extended the interpretation of ‘peer’
and, in addition to people from within Australian universities and SAIs, Audit Panels always include
people from outside Australian academia who have knowledge of or expertise in some aspects of what is
being reviewed, but who have applied it in a different context and/or with different underlying
assumptions.
11.2 Auditor Characteristics
The following are desirable qualities and attributes of auditors appointed to the Register of Auditors.
AUQA Audit Panels as a whole possess a breadth of the experience indicated.
Quality audit and higher education related attributes:

• commitment to principles of quality audit and quality assurance in higher education
• knowledge of quality assurance methods and terminology and their appropriate uses
• knowledge and understanding of the Australian higher education sector, including its broader
context
• ability to reconcile the theory of quality with organisational realities
• experience of undertaking quality reviews (audit, assessment, accreditation, etc.) in educational,
professional or industrial settings
• ability to understand and evaluate information provided by auditees in a manner that is sensitive to
the particular context from which it arises
• experience of graduates
• experience in teaching
• experience in research.
General attributes:
• experience in managerial positions
• understanding of administrative law
• understanding of governmental and legislative processes
• breadth of perspective
• ability to focus knowledge and experience to evaluate quality assurance procedures and techniques,
and to suggest good practices and/or starting points for improvements relative to the auditee’s
particular context
• ability to work in a team, firmly but cooperatively
• ability to communicate effectively

Part 4: Audit Panels AUQA Audit Manual, Version 3.0
• ability to recognise personal values and presumptions and have insight into the ways these may
effect thinking and judgements
• integrity, discretion, commitment and diligence.
11.3 AUQA Honorary Auditors — Training
Although individuals on the AUQA Auditor Register are senior people who have participated in various
forms of quality review, they may not have experience of the quality audit model. For this reason, AUQA
requires auditors to complete an induction training session as a condition of their appointment.
Australian-based auditors attend, at AUQA’s expense, a two-day session led by AUQA staff and other
auditors (with direct expenses incurred by auditors in attending met by AUQA). For pragmatic reasons,
overseas auditors do not attend these sessions, but are provided with written training materials.
Topics typically covered in the induction training include:

• the background behind AUQA and overview of the audit process
• responsibilities of Audit Panel members
• current pressures, directions and changes in the HE sector
• institution/accrediting agency quality frameworks
• analysing the Performance Portfolio
• using performance measures and evaluating evidence
• effective information-gathering
• auditing transnational activities.
Sessions are interactive and provide the opportunity for auditors to practice techniques required.
In addition to induction training, AUQA holds an annual meeting for its honorary auditors and special
purpose workshops as required.
11.4 Roles and Responsibilities of Panel Members
Panel members are selected so that the Panel as a whole possesses the expertise and experience to enable
the audit to be carried out effectively. Members may translate their different perspectives into different
emphases in their attention to the process, and a concentration on certain aspects of the audit.
Nonetheless, members should not attempt to apply pre-conceived templates to their consideration of the
auditee, nor appear to address enquiries from entirely within the perspective of their own speciality or the
practices of their own organisation. The Panel must come to clear and well-founded conclusions in the
context of AUQA’s terms of reference, the nature of the audit and good practice that are defensible both
within and without academia.
Another point to be particularly emphasised is that Panel members are expected to read thoroughly the
Performance Portfolio and associated documentation provided. This should result in a firm grasp of the
range of issues to be addressed, the main issues to be explored in more detail, and the scope of decisions
or conclusions which are indicated. Adequate exploration of issues by the Audit Panel depends on its
members being thoroughly familiar with the Performance Portfolio. The credibility of the audit is at risk
of being undermined if Panel members’ remarks or questions reveal ignorance of the information
provided.
The following table summarises the expectations of Panel members serving on an Audit Panel. Note that
the Panel Chair and AUQA staff member have additional roles and responsibilities (see sections 1.1 and
11.6).

Summary of expectations of Panel members serving on an Audit Panel
Prior to appointment
• Make known to AUQA any matters that are or could be perceived to be a conflict of interest in
undertaking the audit.
At time of appointment
• Sign and return the Declarations Form and complete any other administrative details.
On receipt of Performance Portfolio
• Read thoroughly the Performance Portfolio and associated documentation provided to
become thoroughly familiar with the auditee's policies, procedures and criteria for quality and
the purpose and possible outcomes of the audit
• Provide brief written comments on the Performance Portfolio to AUQA prior to the Portfolio
Meeting.
During Portfolio Meeting
• Participate fully in the meeting
• Be willing to accept special responsibility for one or more areas or topics
• Refresh knowledge of AUQA’s audit method.
Following the Portfolio Meeting and before the Audit Visit
• Comment as desired or requested on the documentation prepared by the AUQA staff member
on the Panel as an outcome of the Portfolio Meeting
• Read supplementary documentation supplied by the auditee in response to the Panel’s
requests
• Participate in the development of questions to be asked by the Panel at the Audit Visit
• Follow-up any areas of special responsibility accepted at the Portfolio Meeting, as necessary
• Where an overseas visit has been conducted, participate in discussions of the issues raised
• For institution audits, possibly participate in visit(s) to partner organisations of the auditee
• For agency audits, possibly participate in visit(s) to some of the agency’s institutions.
During the Audit Visit
• Participate fully in all aspects of the Visit, including interview sessions and Panel-only
discussion and decision-making. Without being excessively formal, Panel members should
work with and through the Chair in the group discussions. Panel members should respect the
agenda agreed by the Panel for the various meetings, and support the Chair as s/he matches
the pace of the meeting to the size of its agenda.
• Where the Panel divides into subgroups for parallel sessions, Panel members may be asked
to provide notes on their subgroup’s discussions.
After the Audit Visit
• Read and provide comment on draft(s) of the Audit Report. If desired, they may also
contribute to its actual drafting more directly by developing suggested new or revised
section(s). While responsibility for writing the report is assigned to the AUQA staff member
on the Panel, all Panel members should be satisfied that the Audit Report is accurate and
balanced (see also section 6)
• As desired, provide feedback to AUQA on the entire audit process.
11.5 Additional Roles and Responsibilities of the Panel Chair
Prior to the Audit Visit, the role of Chair of the Panel involves him/her in two major additional
responsibilities from those outlined above. The first is to chair the Portfolio Meeting at which the Panel
discusses the Performance Portfolio and agrees on the issues to be investigated in the audit (see section
4.5.2). The second is to accompany the AUQA staff member on the Preparatory Visit to the auditee, to
discuss details of the Audit Visit (see section 4.5.3). Where an overseas Audit Visit is required, this
typically also involves the Panel Chair (see section 14).

During the Audit Visit, it is the Chair’s responsibility, in conjunction with the AUQA staff member on the
Panel, to create an atmosphere in which critical professional discussion can take place, where opinions
can be freely and courteously exchanged, and in which justice and clarity prevail. The tone of the visit,
and much of its success, depends on their ability to enable the Panel to undertake its work as a team rather
than as a set of individuals, and to bring out the best in those whom the Panel meets.
Particular expectations of the Chair at the Audit Visit include:

• at the start of each group meeting, the Chair should welcome the group and may introduce other
Panel members. The Chair may quickly outline the major items which the Panel wishes to cover
during the discussion.
• the Chair should keep the discussion to the agreed time, without unnecessarily curtailing or
excluding contributions. However, the Chair must be prepared to intervene if the discussion is
being diverted, trivialised, monopolised, or stuck on matters that are essentially differences of
opinion.
• the Chair and the AUQA staff member must balance adherence to the agreed program with
flexibility in admitting unanticipated issues. Any revisions should be clearly understood by the
Panel, the auditee and the group(s) involved.
• if, for any meeting, the Panel splits into sub-groups, chaired by other members of the Panel, the
Chair should ensure that the sub-chair has an agreed agenda for the session and reports the results
of the sub-group for inclusion in subsequent sessions (and, as necessary, the Audit Report).
• in the private Panel meetings between interviews, the Chair or the AUQA staff member should lead
the Panel in summarising the discussions. This maintains an accurate record and assists the Panel to
maintain a collective position.
• at the end of the Audit Visit, the Chair and the AUQA staff member should guide the Panel towards
decisions or conclusions which are appropriate, carefully thought through and clearly expressed.
• in the final session (exit meeting; see section 5.2.6), the Chair orally presents an outline of the
Panel’s conclusions to the CEO (and possibly other senior staff of the auditee). Although the group
may seek clarification of some points, substantive discussion should not occur at this meeting. The
Chair may on occasion need to be firm about this.
Following the Audit Visit, the main responsibility of the Chair is to liaise with the AUQA staff member to
ensure that the final Audit Report is accurate and fair in all respects.
Following publication of the Audit Report, the Chair may be requested by the AUQA staff member on the
Panel to assist if further interaction is required with the auditee or the AUQA Board.
11.6 Additional Roles and Responsibilities of the AUQA Staff Member
In addition to the responsibilities of all Panel members (see section 11.4), the AUQA staff member on the
Panel is responsible for managing and overseeing all aspects of the audit process and liaising with the
auditee on all matters related to the audit. The AUQA staff member on the Panel has the authority to
ensure compliance with the AUQA Board’s approved procedures.
Prior to the Audit Visit, particular responsibilities of the AUQA staff member include:
• establishing dates for the Panel’s meetings and visits and overseeing the formal appointment of the
Panel
• making necessary arrangements for the Portfolio Meeting and assisting the Panel Chair in the
conduct of that meeting
• making necessary arrangements for the Preparatory Visit to the auditee and attending that meeting
with the Panel Chair
• undertaking (in conjunction with one or more other Panel members) any overseas or domestic
Audit Visit(s) prior to the main Audit Visit and reporting the results of these to the full Panel

• liaising with the auditee regarding the Panel’s requests for additional information and ensuring that
the information is provided in an appropriate and timely fashion
• liaising with the auditee regarding the Audit Visit program(s)
• ensuring that all arrangements for the Panel’s accommodation and sustenance are made and that the
provisions made by the auditee are adequate and appropriate.
During the Audit Visit, particular responsibilities of the AUQA staff member include:
• assisting the Chair in keeping to (or amending, as necessary) the planned program
• liaising with the auditee’s nominated contact person throughout the Visit (including seeking further
information or requesting additional meetings, as necessary)
• assisting the Chair to ensure that all Panel members fully understand the agreed agenda for each
session
• supervising the work of the Audit Secretary who is employed by AUQA to record a transcript of
the interviews and discussions
• recording succinct summaries and notes of issues for clarification, re-consideration and reporting
• in conjunction with the Chair, leading private Panel meetings to ensure that they are an opportunity
for Panel members to discuss emerging issues
• in conjunction with the Chair, guiding Panel members towards decisions or conclusions which are
appropriate and carefully considered
• advising as necessary on appropriate actions and conclusions for the Panel to take or reach
• ensuring that administrative and logistical arrangements for the Visit proceed smoothly.
Following the Audit Visit, the AUQA staff member has responsibility for producing the Audit Report, in
consultation with other Panel members, the auditee and the AUQA Board, as appropriate (see section 6).
After the publication of the report, the staff member oversees the process of gaining feedback from other
Panel members and the auditee; is involved in the selection of items to be invited for consideration for the
AUQA Good Practice Database (see section 7.2); and reports on the audit to the AUQA Board.
The AUQA staff member is also subsequently involved in considering the auditee’s Progress Report (see
section 7.3).
11.7 Summary Timeline
Full details of the stages of an audit are provided in section 3. To give auditors a sense of the process, the
summary timeline for a typical audit is set out below.

Action Time Period

Institution submits Performance Portfolio
Panel reads Portfolio 2–3 weeks
Portfolio Meeting
Panel’s questions, requests and visit proposals sent to and
considered by institution / agency 3 weeks
Panel Chair and AUQA staff member visit institution/agency to
discuss arrangements for the Audit Visit(s)
Visit to partner organisations arranged (for SAI audits) 2 weeks
Visit to partner organisations 1 week
Final planning for main Audit Visit 3 weeks
Main Audit Visit 1 week
Report is drafted by the AUQA staff member with several
iterations sent to Panel members for input 9 weeks
Definitive draft send to institution/agency
Institution/agency considers draft report 3 weeks
Institution sends comments on draft to AUQA
Report is revised 2 weeks
Report is sent to AUQA Board for approval
Board considers report 1–2 weeks
Board approves Report
Report is sent to institution
Embargo period prior to publication 2 weeks
Report is made public
11.8 Observers on Audit Panels
The following statement is the AUQA policy on observers on Audit Panels (Policy Number 016).
11.8.1 Purpose
Requests to observe audits may come from a variety of people, including staff of overseas agencies,
overseas academics, prospective auditors, and members of the AUQA Board. AUQA welcomes the
interest in the audit process indicated by such requests and recognises the value in spreading an
understanding of the AUQA audit process. Therefore, while safeguarding the integrity and effective
management of the audit, AUQA endeavours to meet all reasonable requests.
11.8.2 Policy
External observers on Audit Panels will only be accepted subject to the agreement of AUQA’s Executive
Director, the Panel Chair and the auditee. If an observer wished to observe an offshore visit, the
agreement of the relevant partner organisation is also required. Persons associated with the audit are not
acceptable at observers.

11.8.3 Guiding Principles
The key principles which guide AUQA in agreeing to accept observers are:
• the integrity of the audit process
• minimal inconvenience to the auditee
• no more than one observer per Audit Panel (not including AUQA staff training)
• preferably, the Panel should be quite experienced, and
• appropriate experience and understanding of higher education by the observer.
11.8.4 Procedures
The procedures for the observation of an audit include:

(i) the observer will be briefed by the AUQA staff member responsible for the audit;
(ii) the observer will provide to AUQA a photograph and short biographical statement of him/herself
for the information of Panel members and the auditee;
(iii) the observer will normally attend the main on-shore Audit Visit but not the Preparatory Visit. It is
also preferable for the observer to attend the Portfolio Meeting, but s/he does not normally attend
any other visits;
(iv) the observer will receive a copy of the Performance Portfolio submitted to AUQA for the audit and
lists of any subsequent documents requested of the auditee by the Panel;
(v) AUQA reserves the right to withhold documents at its discretion;
(vi) the observer must remain silent throughout Audit Visit interviews;
(vii) the Panel Chair and/or AUQA staff member responsible for the audit may exclude the observer
from any meeting or interview at their discretion;
(viii) the observer may, at the invitation of the Panel Chair and/or AUQA staff member on the Panel,
offer comments during private meetings of the Audit Panel;
(ix) if the observer wishes to raise any questions during the course of the Audit Visit, they should be
addressed, in private, to the AUQA staff member responsible for the audit. The observer should
avoid placing demands upon the staff member which would significantly deflect her/him from
primary responsibilities as a Panel member;
(x) otherwise, any questions and/or issues arising from the audit shall be discussed after the Audit
Visit, with the Executive Director of AUQA and/or the AUQA staff member responsible for the
audit;
(xi) the observer will adhere to the requirements of confidentiality and privacy of information as set out
in the AUQA Audit Manual;
(xii) the observer will refrain from taking notes relating to the content of Panel discussions or Audit
Visit interviews;
(xiii) the observer may not use any electronic recording device at any time during the audit;
(xiv) the observer will normally be copied into correspondence between the AUQA staff member on the
Panel and other Panel members, up to the time of the Audit Visit;
(xv) the observer will be responsible for the cost of her/his accommodation and travel, but AUQA will
normally meet the cost of meals and refreshments during the Audit Visit;
(xvi) the observer may be invited to provide to AUQA comments on the audit process.
Observers are required to sign a declaration confirming their understanding and acceptance of these
procedures.

11.8.5 References
This policy should be read in conjunction with the Privacy of Information Policy (Policy Number 020).
11.8.6 Approvals
This policy was originally approved on: 19 November 2001.

11.9 Information Gathering Techniques
11.9.1 The Need for Evidence
Audit Panels consider both quantitative and qualitative data, looking for specific strengths or weaknesses,
and highlighting examples of good practice and areas for improvement.
In its interviews, the Panel is trying to clarify issues, and glean explanations, justifications and further
information. In particular, Panel members need to:
• explore discrepancies between what is written and what is said
• seek clarification and confirmation when required
• listen as well as ask
• concentrate on major rather than minor issues
• participate in a collaborative manner
• distinguish between those interviewee opinions that fairly represent the constituency as a whole, and
those which may be views of the one individual, and
• be aware that the dynamics of the Panel and of its relation to the auditee change and develop during
the audit process. This is particularly the case in respect of the Panel’s relations with the staff of an
institution during the Audit Visit.
The Panel should attempt to assure itself that it has obtained and considered all information relevant to its
conclusions. Panel members are not expected to offer suggestions to interviewees, except as a way of
elucidating further information. Suggestions for improvement and examples of good practice elsewhere
can be included in the Audit Report.
11.9.2 Sampling
Any institution or agency can provide far more information than an Audit Panel could embrace in the
time at its disposal. It is for this reason that the emphasis of the audit process is on an auditee reaching its
own conclusions through its self-review and Performance Portfolio which are then validated (or
otherwise) by AUQA.
For the same reason, an Audit Panel’s investigation is characterised by sampling. An Audit Panel’s work
depends on well-chosen purposive sampling, to gain the maximum information from the selected samples.
A sampling matrix may be used. The auditee will need to be asked for this information soon after the
Panel’s Portfolio Meeting. Some of the written material may be able to be supplied in advance of the
Audit Visit.
The selection of samples occurs at two levels. The first arises from the Panel’s analysis of the
Performance Portfolio, during which particular areas may be identified as, for example, significant or
problematic, and therefore selected for further investigation. This process is sometimes called ‘scoping’.

As one of these areas, Audit Panels commonly choose to sample details of actual award courses or
accreditation decisions (see section 11.9.3). Panels will also select some key issues to track across or
through an institution or agency), eg support for research development, risk management.
At the second level, the Panel agrees on the documentary or oral evidence it needs to sample within these
areas, taking account of the need to triangulate evidence (see section 11.9.4). Panels may seek samples
that are expected to be typical, eg one award course from several faculties, or samples that are expected to
show wide variety, eg courses from disciplines with high and low ratings for quality of teaching. A full
document trail may be sought or only selected documents. Similarly, staff induction processes within an
institution or agency might be explored across functional units but could also be explored by seeking the
views of different categories of staff. For an institution, Panels may seek to interview students from the
same faculties as the staff they interview or as the courses they sample. However, to examine other
specific issues, a Panel may wish instead to interview students from other faculties. The key principle is
to identify the major issues, consider what form of sample is likely to generate the best information, and
then to choose a sample that is best suited to the range of issues to be explored.
One implication of the use of sampling is that interviewees at the Audit Visit may feel they have been
given insufficient time to discuss a topic to its conclusion. Since it is impossible for AUQA to give
everyone the amount of time they might desire, interviewees must recognise that their contribution, which
is valued, is only part of a large tapestry that is being assembled by the Panel. Also, the Audit Visit
program always reserves some time when staff, students or others can take the initiative to meet the Panel
to provide information or comment (the open session; see section 5.2.4).
11.9.3 Tracking or Trailing
Although a Panel cannot cover all issues in depth, it delves into some issues through a process known as
tracking (or trailing). This form of sampling focuses on a particular issue and pursues it through several
layers or areas of the organisation. For example, to check that an agency’s accreditation procedures are
being implemented as laid down, the documentation relating to a sample of particular applications will be
sought and appraised. The documentation could include the original application, subsequent
correspondence, records of meetings with the applicant, and records of the accreditation panel’s meetings.
Another instance would be the investigation of the way in which an institution handles student
evaluations of teaching.
11.9.4 Triangulation
Triangulation is the technique of investigating an issue by considering information on it from sources of

different types. For example, the Panel may discuss selected policies and their implementation with senior
management, with other staff and with students to see if the various opinions and experiences of the
policy and its workings are consistent. Aspects of a topic may be checked through committee minutes,
course and teaching evaluations, program reviews, reports of professional association accreditations, or
external examiners’ reports. Where conflicting information is received from different sources, the Panel
must decide how to further investigate the topic, so it can reach a considered decision. Given the
restricted time available during an Audit Visit the Panel may be unable to reach a conclusion on a
particular topic and may simply draw attention to the inconsistency in the Audit Report. The Panel may
also attempt to detect the reasons for such inconsistencies.
The Audit Visit interviews allow the Panel to triangulate information with each of the various groups it
meets. To this end, for most interview groups, the Panel will wish to discuss a number of different topics,
even where it may seem to the interviewees that they are being asked about matters outside their
particular areas of responsibility. Auditees (and particularly institutions) should therefore inform the
groups meeting the Panel that they may, within reason, be asked about anything within the scope of the
audit.

11.9.5 Styles of Questioning at Audit Visits
Creating an atmosphere for genuine dialogue during the Audit Visit is extremely important and, as much
as possible, Panel members should act as colleagues and peers of the interviewees, rather than inspectors.
To this end, the questioning and discussion must be fair and polite. It must also be rigorous and incisive,
as the Audit Report must reflect the auditee as it is, in respect of both achievements and weaknesses, and
the evidence-gathering process must therefore be thorough. Panel members should ensure that all
interviewees are engaged in the discussion.
A panel uses a variety of questioning styles to gather the information it requires. To pursue a particular
issue, the Panel might begin by seeking information through an open-ended question, and then investigate
the issue further, probing it through asking further questions based on the answer to the first. This often
leads to the use of closed questions (requiring a ‘yes’ or ‘no’ answer), and perhaps finally checking to
confirm the impression obtained.
Much time can be wasted if Panel members do not plan and focus their questions. The skills of effective
interviewing are discussed in detail in AUQA’s auditor training sessions, but in brief, auditors are advised
against:
• asking multiple questions
• using wordy preamble to questions
• telling anecdotes or making speeches
• detailing the situation in their own organisation
• offering suggestions or advice.

AUQA Audit Manual, Version 3.0 Part 4: Conflicts of Interest
12. CONFLICTS OF INTEREST
The following statement is the AUQA policy on conflicts of interest (Policy Number 006).
12.1 Purpose
Due to extensive interaction across the higher education sector, AUQA Board members, staff members
and honorary auditors of AUQA may all experience conflicts of interest between their role(s) with AUQA
and their other activities. This statement is concerned with conflicts of interest relating to membership of
an Audit Panel.
12.2 Policy
Honorary Auditors
For Audit Panel members, possible conflicts may be categorised as personal, professional or ideological
(between which there may be some overlap).
Personal conflicts could include animosity, close friendship or kinship between an auditor and the Chief
Executive or other senior manager of the institution or agency, or if an auditor were biased for or against
the auditee due to some previous event. It is normally preferable to avoid having graduates of the
institution on an institutional Audit Panel.
Professional conflicts could occur if an auditor had been a failed applicant for a position in the institution
or agency, were a current applicant or prospect for a position in the institution or agency, were a senior
adviser, examiner or consultant to the institution or agency, or were with an institution that is strongly
competing with an institution being audited.
An example of an ideological conflict would be an auditor’s lack of sympathy to the style, type or ethos
of an institution.
Auditors are obliged to declare formally to AUQA any matters that could influence or be perceived to
influence their ability to serve effectively on an Audit Panel (refer to the guidelines of this policy).
AUQA Staff
In their role as members of Audit Panels, AUQA staff may experience the same categories of conflict of
interest as honorary auditors and are obliged to declare any such matters to the Executive Director.
Another form of conflict that could arise is if AUQA staff were to suggest to an auditee either quality
procedures or Portfolio content/presentation which were subsequently criticised by an AUQA Audit
Panel. To avoid this, the parties must accept their respective responsibilities; namely AUQA staff
members are individually responsible for providing assistance and advice on these matters; each auditee is
responsible for choosing and applying its own quality procedures, and describing these procedures and
their effectiveness in its Performance Portfolio; and the Audit Panel is responsible for assessing the
quality system as implemented and described.
Observers
AUQA permits the attendance of observers of Audit Panels under certain conditions (Observers on Audit
Panels, Policy Number 016). While observers could have similar conflicts of interest to those of Panel
members, they do not take an active role in the audit or the decisions reached by the Audit Panel.

Part 4: Conflicts of Interest AUQA Audit Manual, Version 3.0
Nonetheless, observers are required formally to declare that they have no conflicts of interest and,
furthermore, would not be permitted to act as an observer if the auditee were to object.
AUQA Directors
The policy on Responsibilities of the AUQA Board (Policy Number 003) states that for Board members
to be able to exercise their responsibilities in relation to audits ‘they need the distance and independence
of not being members of Audit Panels’. Also, where an AUQA Director has a material personal interest in
a particular auditee, s/he is excluded from any of the Board’s usual duties with respect to that audit,
including any discussion of that auditee at a Board meeting.
To ensure this can be achieved, drafts and final version of the Audit Report, and any reports containing
feedback on a particular audit, will not be distributed to a Director who has an interest in that auditee.
12.3 Guidelines
Honorary Auditors
As an Audit Panel is being selected, prospective auditors and the auditee are asked to declare in writing
any matters that could pose a conflict of interest in the prospective auditor being appointed to the Audit
Panel for that institution or agency. If the prospective auditor responds in the affirmative, AUQA may
remove her/him from consideration, or, having considered the reasons, decide that in fact no conflict
exists. If the auditee responds in the affirmative, or wishes on other grounds for a person not to be
selected as an auditor, the reasons must be given. The final decision whether to appoint a particular
person to any given Audit Panel rests with AUQA.
If the existence of a conflict of interest emerges (or, more rarely, is created) during the audit process for
any auditee, the auditor should tell the Panel Chair and/or the AUQA staff member on the Panel. These
two will decide on the appropriate action to be taken (in consultation with the Executive Director of
AUQA).
AUQA staff
The aspects mentioned above are considered by the Executive Director in allocating staff members to
Audit Panels.
AUQA Directors
The Board Secretary maintains a record of Disclosures of Interest by AUQA Board Directors, which is
updated regularly. The record details Directors’ direct and indirect interests in any Company business.
12.4 Approvals
This policy was originally approved on: 24 July 2001.

This version was approved on: 24 March 2005.

AUQA Audit Manual, Version 3.0 Part 4: Privacy of Information & Freedom of Information
13. PRIVACY OF INFORMATION AND FREEDOM OF INFORMATION
13.1 Privacy of Information Policy
The following statement is the AUQA policy on privacy of information (Policy Number 020).
13.1.1 Background
In 2001, the Privacy Act 1988 (Cwlth) was amended to include laws that regulate the collection and use
of personal information by private sector organisations. The changes are outlined in the Privacy
Amendment (Private Sector) Act 2000 (Cwlth). The amendments include the ten National Privacy
Principles which are as follows: collection, use and disclosure, data quality, data security, openness,
access and correction, identifiers, anonymity, trans-border data flows and sensitive information. Each
principle details the obligations of those collecting, retaining and using personal information.
Personal information is defined as information or an opinion (including information or an opinion

forming part of a database), whether true or not, and whether recorded in material form or not, about an
individual whose identity is apparent, or can reasonably be ascertained, from the information or opinion.
By virtue of its establishment, nature and structure, AUQA is not subject to any privacy legislation.
However, in its operations, AUQA acts within the spirit of the legislation. The function of AUQA is to
assist the self-accrediting institutions in the review and enhancement of their academic quality; and to
assist the accrediting agencies in the performance of their legal obligations. All AUQA’s information-
gathering (from the institutions or elsewhere) and its discussions (with staff of institutions and agencies,
students and others) are directed to this end.
13.1.2 Policy
Access to information
In order that an Audit Panel may carry out an effective audit, it needs access to a great deal of material
about the auditee. Some of this, such as personal or commercial information, may be quite sensitive.
Auditees are expected to write the core document of the Performance Portfolio as a public document and
post it on the auditee’s website for at least 12 months after the Audit Report is published. The core
document refers to other documents that are or can be made available to the Audit Panel, and some of
these may be flagged as confidential, to be seen by the Panel only. Furthermore, there may be parts of
such documents that the auditee would prefer (or is required by its own confidentiality constraints) not to
show even to the Audit Panel. In such circumstances, the Audit Panel negotiates with the auditee an
appropriate means for the Panel to obtain the information its needs, while respecting the auditee’s
requirements.
Handling of information
Audit Panels keep the requests for personal or commercial information to the essential minimum, and
treat as confidential any personal or commercially sensitive information provided by the auditee. Any
such information is used only for the purpose for which it was obtained in conjunction with the audit process.
Once the Audit Report has been published, Panel members and AUQA have responsibilities for
destroying, in a secure fashion, information related to the audit, as follows.

Part 4: Privacy of Information & Freedom of Information AUQA Audit Manual, Version 3.0
Panel members
Panel members are instructed to destroy:
• all notes (handwritten and electronic) they have made during or in connection with the audit
• emails sent or received in connection with the substance of the audit
• all portfolio supporting documents (except those documents that are obviously in the public
domain, such as annual reports, handbooks or calendars, which may be kept provided they have no
marginal annotations)
• any documents, such as the portfolio and drafts of the Audit Report, in which members have made
marginal notes, and
• the transcript of the audit interviews (if this has been provided to Panel members).
In summary, Panel members may keep the core document of the Portfolio (provided it has no marginal
comments written on it) and the final Audit Report, but little else.
In order to facilitate the deletion of emails, auditors are advised to keep all incoming and outgoing email
messages relating to the audit in a single folder. Panel members who are unable to easily dispose of these
materials in a secure fashion should discuss the matter with the AUQA staff member on the Panel.
AUQA
AUQA retains the following materials:
• Performance Portfolio (unmarked)*
• complete set of supporting material
• additional documents, in hardcopy or electronic format, whether requested, received, downloaded
from the internet or from the auditee’s intranet or accessed through research (including
‘commercial-in-confidence’ documents)
• audit budget and other material relating to the financial aspects and travel arrangements for the
audit
• Final Issues Register and Additional Information request
• Final Audit Visit program and worksheets
• transcript of the Audit Visit interviews
• official correspondence with Panel members excluding details relating to development of the Audit
Report (but including Panel members’ declaration forms)
• survey forms and reports of accrediting agency stakeholders
• report of the panel’s overseas visits (if applicable)
• the definitive draft of the Audit Report (as sent to the auditee) and the auditee’s response;
• published Audit Report*
• Board meeting minutes recording the Board’s approval of Report release
• correspondence, including email, with the auditee relating to the organisation of the audit, and
• summary and analysis of responses to surveys of auditee and auditors after the audit.
Items marked with an asterisk (*) are retained in AUQA’s archives indefinitely. Other items will
eventually be disposed of according to the Retention and Disposal Schedule.
Any information that is kept by AUQA for any purpose is stored in a secure place or fashion, but
documents in the public domain such as annual reports, calendars and handbooks may be retained in the
AUQA Library.
AUQA securely destroys the following materials:

• any documents with marginal annotations
• other hand-written or electronically stored notes
• in audits of agencies, the responses to the surveys of the agency’s providers and panel members

AUQA Audit Manual, Version 3.0 Part 4: Privacy of Information & Freedom of Information
• aside from official correspondence, any draft information relating to substantive aspects of the
audit
• aside from the definitive draft, any draft versions of the Audit Report
• correspondence, including email, and any other documents, that contain panel members’ interim
ideas or views in relation to the audit’s conclusions, and
• responses to surveys of auditee and auditors after the audit.
Information dissemination
One function of AUQA is to disseminate information about good practice in quality assurance, and one
way of doing this is through auditors describing instances of good practice that they have encountered in
carrying out their audit work. Any such descriptions are, however, to be confined to general principles
and non-sensitive information, so as not to breach the confidentiality referred to above. Auditors may not
implement, in whole or in part, systems or processes that are substantially the same as ones they have
observed during an audit, without first obtaining the permission of the auditee.
Approvals
This policy was originally approved on: 28 May 2002.
13.2 Freedom of Information Policy
The following statement is the AUQA policy on freedom of information (Policy Number 011).
13.2.1 Purpose
This policy sets out AUQA’s approach to making information publicly available.
13.2.2 Background
The Commonwealth Freedom of Information Act (1982) was enacted with the following objectives:
• making available to the public information about government decision-making
• ensuring that policy is readily available to members of the public affected by it, and
• creating a general right of access to documents in the possession of administrative decision-makers.
The Act gives the Australian community the right to access government information in documentary form
which may be held by Ministers, government departments and public authorities. The provisions of the
federal Freedom of Information Act (1982) do not extend to information which is in the possession of
private sector organisations such as AUQA. The same applies for the State Freedom of Information Act
(1982) (Vic).
13.2.3 Policy
By virtue of its establishment, nature and structure, AUQA is not subject to any freedom of information
legislation. However, in its operations, AUQA acts consistently with the above objectives whenever possible.
Public information
All AUQA’s procedures and policies are publicly available, the results of its audits are public Audit
Reports, and it produces occasional publications on matters relating to quality in higher education. AUQA

Part 4: Privacy of Information & Freedom of Information AUQA Audit Manual, Version 3.0
refrains from publishing any information in contravention of AUQA’s Privacy of Information Policy (see
section 13.1).
Submissions
In the course of an audit, AUQA does not normally receive written submissions other than the
Performance Portfolio prepared by the auditee. If, however, a submission is made, and the writer wishes it
to be kept confidential, it should be prefaced with the following statement:
This information is provided on the understanding that it will be confidential to the members
of the Audit Panel and AUQA Board, and will not be used for any purpose other than the
production of the Audit Report.
Approvals

AUQA Audit Manual, Version 3.0 Part 4: Auditing Overseas Activities
14. AUDITING OVERSEAS ACTIVITIES
If an institution has overseas operations involving the teaching of students, the Audit Panel will normally
visit at least one of those operations and may visit several. The seven factors described below are applied
to determine the operations that a Panel is most likely to visit. The following statement constitutes the AUQA
policy on auditing overseas activities (Policy Number 002).
14.1 Purpose
AUQA’s audit scope includes all academic activities carried out in an institution’s name. However, it is
unnecessary for AUQA to examine all of the institution’s activities in detail because this comprehensive
scope can be addressed in other ways. Firstly, AUQA expects the institution to carry out a thorough self-
review (whether in preparation for AUQA audit or as part of its routine QA procedures). Secondly,
AUQA investigates in detail only some of the scope, referring to the result of the self-review to guide the
selection. This approach permits AUQA to pay careful attention to the cost-benefit balance.
AUQA’s detailed investigation is based on sampling. AUQA audit panels talk to samples of staff and
students, inspect documents on a sample of programs, investigate a sample of research centres, and so on.
Panels also visit a sample of campuses, a sample of partners within Australia, and a sample of overseas
operations. This Policy specifically provides guidance on the sampling appropriate to overseas operations.
14.2 Policy
Overseas visits are considered for each institutional audit by the audit panel for that institution. All
sampling is decided by the audit panel, normally at the Portfolio Meeting, after analysing the auditee’s
performance portfolio. The decisions made at this time may be provisional, to be confirmed after seeking
additional information from, and having discussion with, the auditee.
An AUQA audit panel considers the seven factors below in relation to the auditing of overseas activities.
The first five factors relate to the substance of the activities, and the last two bring in practical
considerations.
If overseas investigation is deemed necessary, the audit panel will decide how best to carry it out. If
overseas visits are necessary, some or all of the audit panel will undertake visits to one or more sites of
overseas activity, as deemed necessary, at the time most suitable to the overall process, to effectively
discharge their quality audit responsibilities. Such visits are usually made by one or two of the panel
members rather than the whole panel.
14.3 Guidelines
14.3.1 Audit Principles
The approach to auditing overseas activities of institutions must be consistent with AUQA’s general audit
principles. Relevant principles include:
• the scope for audit is the organisation’s own stated goals and objectives
• the audit is not a comparison of institutions nor about adherence to a common set of standards
• the audit is based upon an institution’s self-review

Part 4: Auditing Overseas Activities AUQA Audit Manual, Version 3.0
• in order to recognise each institution’s distinctiveness, an institution may present itself in the
manner that best reflects their self-perception, rather than according to a rigid template
• audit costs ought to be kept to a minimum, consistent with maintaining the integrity and rigour of
audits.
14.3.2 Seven Factors to Consider
Nature of the Overseas Activities
(i) Materiality
What are the numbers of staff and students per overseas venue (perhaps as a ratio to total student
numbers)? If the numbers are relatively modest and stable, then the Audit Panel may choose to put its
efforts elsewhere. If, on the other hand, the numbers are big and/or variable enough to have a discernible
impact on the financial position of the institution, then the Audit Panel may consider this sufficiently
material to warrant particular attention.
(ii) Strategic Significance

What is the relationship of the overseas activities to the organisational strategies? For example, if it is ad
hoc or not scheduled for growth in comparison with other organisational goals then the Audit Panel may
conclude that it is not sufficiently significant to apply limited resources (time and money) in auditing it.
On the other hand, if the overseas activities are the subject of a major growth strategy then the Audit
Panel may deem them sufficiently significant to warrant particular attention, even if the activity is
currently quite small.
(iii) Risk Management

What is the likelihood and consequences of things going wrong with the overseas activities? In
considering this matter, a major factor is the integrity of the institution’s risk management system. Are all
the overseas operations managed consistently, perhaps via a single central international office, or is each
under the separate control of different schools or departments? Are there consistent, institution-wide QA
processes for all (or most) overseas operations? Other factors to consider include, for example, how long
established the activity is; how stable its operation has been, and whether there are any particular external
(eg political/media) sensitivities attached to it.
(iv) Risk to Students

The ‘Risk’ factor outlined above refers to the institution’s risk management systems. Risk is also relevant
from the point of view of the students. The institution may have thorough systems for large bodies of
overseas students, but not for the smaller operations. Put another way, an institution with a large number
of overseas students (which might therefore feature highly on ‘Materiality’) may be highly experienced
and have correspondingly secure systems; whereas an institution with only a few overseas students may
lack experience in the provision necessary for them, and hence pose a greater risk to students.
(v) Host Country Accreditation

Most overseas locations in which Australian institutions operate have external quality mechanisms of
their own. In some cases they apply to all incoming education provision while in others they are very
restricted in scope. What is the effect of these arrangements on the Australian overseas activities? Do they
add to the security of quality of provision? To what extent can their outcomes be used to provide some of
the information required for AUQA audit?

AUQA Audit Manual, Version 3.0 Part 4: Auditing Overseas Activities
Practical considerations
(vi) Practicality
What is the number and location of overseas venues, and can worthwhile visit(s) be completed in the time
available? There may be a large number of relatively small-scale operations widely dispersed around the
world, and it may be impractical to visit many but of dubious value to visit only one. The period between
the audit panel’s meeting at which the (provisional) visit decisions are made and the (normally
culminating) audit visit to the main domestic campus is quite short. It can be difficult to make all the
necessary arrangements with the overseas partners within this short period.
(vii) Necessity
Once the audit panel has decided on the level of attention needed, it considers the cost-effective aspects of
acquiring the necessary knowledge. Full weight is given to the information in the Performance Portfolio
itself, including the supporting documentation. Further information is always obtained in various ways.
The institution is asked to provide additional information, panel members browse the websites of the
institution and partners, and many auditees give the panel access to their intranet. In cases where the panel
feels that personal interaction is essential, this may be carried out through tele-conferencing, video-
conferencing, and even email. Thus, a physical visit overseas is only one option among a number of
strategies available to an audit panel to carry out its investigations.
Each means of information-gathering has its own advantages and disadvantages, and choice of their usage
will depend as much on an assessment of their pros and cons against the issues selected for exploration, as
it will on their availability in any given situation. Each audit panel considers these factors and weighs
their total effect, adequacy and value in deciding how to gather all the information it needs, and
specifically whether to undertake visits to an auditee’s overseas activities.
14.3.3 Implementation
If the panel decides that an overseas visit is to be undertaken, its plans are discussed with the auditee (at
or before the Preparatory Visit) and the Executive Director, and AUQA’s country specialist for the
relevant country is consulted.
Overseas visits are normally scheduled to take place after the Preparatory Visit and before the main Audit
visit.
Personnel Involved
The whole audit panel is involved in the main audit visit to the auditee’s main domestic campus, and
sometimes to other campuses. With an eye to balancing effectiveness with economy, any other visits to
domestic or overseas partners, and sometimes to more distant campuses, are normally undertaken by a
delegation of just one or two panel members. The AUQA staff member on the panel is normally a
member of the visiting group. The other is usually the Panel Chair, but it may be another panel member.
A member of the Australian institution may accompany the audit panel members on the overseas visit (at
the institution’s expense). While AUQA encourages this to occur, it does not require it. This person is
able to facilitate introductions to the partners visited and may also provide formal input to the panel
members during the time overseas.
Contacts
In advance of the overseas visits, AUQA contacts bodies such as IDP Education Australia and Australian
Education International in the countries to be visited, in case they are able to offer advice and contextual
information on the country and relevant organisations, and possible assistance in arranging meetings.

Part 4: Auditing Overseas Activities AUQA Audit Manual, Version 3.0
AUQA informs the external quality agency(ies) in the overseas countries that it will be conducting the
visit in its jurisdiction. The agency may be able to supply information on the quality assurance regime to
which the Australian institution and/or its overseas partner(s) is subject.
The respective AUQA country specialists also provide advice to the visiting delegation.
Reporting
Following the overseas visit(s), the delegation prepares a detailed written report to inform the whole audit
panel. This report remains a confidential panel document but is used to inform the panel’s on-shore audit
investigations and final public report.
Note on Other Visits

The above sets out in some detail how an audit panel decides on and carries out visits to overseas
operations. Audit panels bear these same factors in mind when deciding on visits to campuses or domestic
partners. In brief, the decision usually turns on how large the partner operations are, and how different
other campuses are than the panel will see in its main audit visit to the main campus.
14.4 Approvals
This policy was originally approved on: 19 November 2001.


AUQA Audit Manual, Version 3.0 Part 4: Administrative Arrangements for Honorary Auditors
15. ADMINISTRATIVE ARRANGEMENTS FOR HONORARY AUDITORS
15.1 Purpose
The following is the AUQA Policy on the administrative arrangements for honorary auditors appointed to
Audit Panels (Policy Number 001).
15.2 Policy
For the purpose of participating in AUQA audits, members of Audit Panels are provided, as appropriate,
with air fares, hotel accommodation and an honorarium. In addition, claims may be made in respect of
expenses directly incurred in connection with the Portfolio Meeting, Preparatory Visit and the Audit
Visit. AUQA has an Expenses Form for use in reclaiming costs incurred in carrying out work on behalf of
AUQA (available at: www.auqa.edu.au/qualityaudit/formsforauditors/index.shtml).
15.3 Guidelines
These guidelines refer to arrangements for the Portfolio Meeting, Preparatory Visit and Audit Visit(s). All
Panel members are involved in the Portfolio Meeting and the Audit Visit, but only the Panel Chair and the
AUQA staff member in the Preparatory Visit.
15.3.1 Travel Arrangements: Australian-based Auditors
Auditors are entitled to an economy-class return air fare, travelling by the most direct route between their
home base and the venues for the Portfolio Meeting and Visits. All travel bookings must be made through
the AUQA office (by the Audit Support Administrator or the PA to the Executive Director) unless agreed
in advance, with the intention of securing the best fare available.
If surface travel is more convenient, the arrangements should be discussed with AUQA. If private car or
taxi travel is to be taken in preference to air travel, the total amount of reimbursement should be agreed
with AUQA in advance (see also Policy 004 Care Rates).
An auditor may participate in a Portfolio Meeting via teleconference in exceptional circumstances.
Due to the tight timeframe for any overseas visits that may occur as part of an audit, Panel members are
entitled to business class fares for these visits.
15.3.2 Travel Arrangements: International Auditors
If international auditors travelling to AUQA have an air travel time of more than 15 hours, business class
travel may be considered. Otherwise, international auditors are entitled to an economy class return air
fare, travelling by the most direct route between their home base and the venues for the Portfolio Meeting
and Visits. An auditor may:
• make her/his own bookings, payments, etc., and obtain reimbursement from AUQA, or
• advise AUQA of the desired dates and itinerary, and AUQA will arrange and pay for the flights.
Most auditors prefer the convenience of the former option. Auditors are requested to take advantage of
special-rate fares where possible. Stopovers are permitted, provided there is no extra cost to AUQA.
An auditor may participate in a Portfolio Meeting via teleconference in exceptional circumstances.

Part 4: Administrative Arrangements for Honorary Auditors AUQA Audit Manual, Version 3.0
15.3.3 Other Expenses
Auditors may claim reimbursement of the following expenses incurred directly as a result of participating
in the audit:
(i) travel between home and airport (see Policy 004 in regard to private car use)
(ii) travel between hotel/meeting venue and airport
(iii) airport parking
(iv) airport departure taxes, and
(v) cost incurred in obtaining a visa.
AUQA has an Expenses Form for use in reclaiming such costs (receipts must be submitted).
Where appropriate, taxi vouchers are forwarded to Panel members prior to meetings to cover taxi costs.
15.3.4 Alternative Travel Arrangements
If an auditor wishes to make any other travel arrangement, such arrangements should be discussed with
AUQA beforehand. In general, AUQA is willing to be flexible provided AUQA incurs no extra cost.
15.3.5 Travel and Medical Insurance and Travel Safety
Honorary auditors are covered by AUQA’s travel and medical insurance policy when on authorised
AUQA business involving overseas or interstate travel.
To ensure that travel outside Australia on audit business is undertaken after consideration of any risks to
health and safety, AUQA has a Travel Policy (Policy Number 027) that requires the status if the
Australian Department of Foreign Affairs and Trade’s (DFAT’s) travel advice for the relevant country to
be consulted before overseas travel can be confirmed. This Policy applies to AUQA staff and, in the case
of audit-related travel, to honorary auditors, except that AUQA cannot override the instructions or
requirements of an auditor’s employer in relation to whether they are permitted to travel.
15.3.6 Accommodation and Expenses
All members of a Panel are normally expected to stay in the same hotel for the duration of the Audit Visit
and this is organised by AUQA. Members are provided with hotel accommodation, with AUQA paying
the cost of the room and breakfast(s). The hotel will charge members for other costs including meals,
laundry, phone calls, faxes and additional accommodation for any accompanying person(s). During Audit
Visits, lunches and dinners are provided by the auditee and AUQA (respectively).
A similar provision (accommodation and full board but not ancillary expenses) is made for the
international auditor for the Portfolio Meeting. Australian-based auditors would not normally be expected
to require hotel accommodation for the Portfolio Meeting (unless travelling from Western Australia,
Northern Territory or far north Queensland).
15.3.7 Honoraria
Panel members are paid an honorarium that relates to the number of full days spent in Panel meetings
(this will vary between audits). As a typical example, for an audit involving a one-day Portfolio Meeting
and a three-day Audit Visit, the honorarium is AUD$3,000 for the Panel Chair and AUD$2,400 for other
honorary auditors (AUD$600 per day). Panel members may choose to have the honorarium paid to them
individually (when income tax must be deducted); or may have a corporate body invoice AUQA for the
honorarium (plus GST). The AUQA staff member on the Panel can advise auditors on the appropriate
procedure.

AUQA Audit Manual, Version 3.0 Part 4: Administrative Arrangements for Honorary Auditors
15.4 References
This policy (Policy Number 001) should be read in conjunction with the Car Rates Policy (Policy Number
004) and the Travel Policy (Policy Number 027).
15.5 Approvals

15.6 Car Rates Policy 004
The AUQA Policy on car rates is stated as follows. Unless otherwise agreed in advance, AUQA will
reimburse only to the amount of the most economical alternative that is reasonable in the circumstances.
15.6.1 Purpose
AUQA staff, Board members and auditors occasionally use their cars on AUQA business in
circumstances in which it is proper for AUQA to provide reimbursement.
15.6.2 Policy
If a personal vehicle is used for a short journey on AUQA business, AUQA will, on request, meet the fuel
costs. For more significant distances, AUQA will pay a distance rate.
For significant distances, the total amount reimbursed by AUQA will not exceed the amount of the most
economical alternative that is reasonable in the circumstances.
15.6.3 Guidelines
AUQA reimburses such use at rates broadly in line with those of other organisations and reviews these
rates from time to time.
If private car travel is to be taken in preference to air travel, the total amount of reimbursement
must be agreed with AUQA in advance.
To obtain reimbursement, travel details must be provided in writing, including the purpose of use and the
kilometres travelled).
AUQA usually uses a rate of 60c/km, although there is some room for variation.
AUQA will also cover costs associated with road tolls on the submission of receipts.
15.6.4 Approvals


AUQA Audit Manual, Version 3.0 Part 5: Ancillary Materials
PART 5: ANCILLARY MATERIALS
ABBREVIATIONS
The following abbreviations are used in this Manual. They are explained in context.
ADRI ............................ Approach; Deployment; Results; Improvement

APQN........................... Asia-Pacific Quality Network
AUQA .......................... Australian Universities Quality Agency
AVCC .......................... Australian Vice-Chancellors’ Committee
CEO............................... Chief Executive Officer
CEQ............................... Course Experience Questionnaire
CRICOS...................... Commonwealth Register of Institutions and Courses for Overseas Students
DEST ............................ Department of Education, Science and Training (formerly DETYA)
DETYA ....................... Department of Education, Training and Youth Affairs (now DEST)
EFTSL ......................... equivalent full-time student load
EQA .............................. external quality assurance
FTE ................................ full-time equivalent
GDS............................... Graduate Destination Survey
HE .................................. higher education
IMHE............................ Program on Institutional Management in Higher Education (of the OECD)
INQAAHE ................ International Network for Quality Assurance Agencies in Higher Education
ISO ................................. International Organization for Standardization
JAS-ANZ ................... Joint Accreditation System of Australia and New Zealand
MCEETYA ............... Ministerial Council on Education, Employment, Training and Youth Affairs
NSAI ............................. non self-accrediting institution
OECD/IMHE ........... Organisation for Economic Cooperation and Development Programme on Institutional
Management in Higher Education
PDF................................ portable document format
PREQ............................ Postgraduate Research Experience Questionnaire
QA .................................. quality assurance
SAI ................................. self-accrediting institution
STAAs ......................... State and Territory accrediting agencies
UNESCO.................... United Nations Educational, Scientific and Cultural Organisation
VET ...................... vocational education and training

AUQA Audit Manual, Version 2 Part 5: Ancillary Materials
BIBLIOGRAPHY
Australian Universities Quality Agency, Policy 001: Administrative Arrangements for Honorary Auditors
<http://www.auqa.edu.au/aboutauqa/policies/001/index.shtml>.
— Policy 002: Auditing Overseas Activities

— Policy 003: Responsibilities of the AUQA Board, Particularly in Relation to AUQA Audits,
— Policy 004: Car Rates

— Policy 006: Conflicts of Interest,

— Policy 011: Freedom of Information, <http://www.auqa.edu.au/aboutauqa/policies/011/index.shtml>.
— Policy 016: Observers on Audit Panels,

— Policy 020: Privacy,

— Policy 024: Review of Audit Reports, <http://www.auqa.edu.au/aboutauqa/policies/024/index.shtml>.
— Policy 026: Progress Reports,

Australian Vice-Chancellors’ Committee 2005, Provision of Education to International Students: Code of

Practice and Guidelines for Australian Universities, Australian Vice-Chancellors’ Committee, Canberra,
viewed 6 April 2006, <http://www.avcc.edu.au>.

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Authorities and Providers of Education and Training to Overseas Students (the National Code),
Department of Education, Training and Youth Affairs (now DEST), Canberra, viewed 6 April 2006,
<http://www.dest.gov.au/sectors/international_education?policy_issues_reviews/key_issues/esos/#Nation
al_Code_of_Practice>.
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<http://www.iso.org/iso/en/iso9000-14000/index.html>
Joint Technical Committee QR/7 1994, Quality Management and Quality Assurance–Vocabulary,
(AS/NZS ISO8402:1994), Standards Australia, Homebush, NSW & Standards New Zealand, Wellington.
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Education, Seminar on the New Quality Assurance Framework, Canberra, 10 December, viewed 6 April
2006, <http://www.dest.gov/archive/ministers/kemp/dec99/ks101299.htm>.
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<http://www.mceetya.edu.au>.
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viewed 6 April 2006, <http://www.mceetya.edu.au/mceetya/default.asp?id=11908>.
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Australian Quality Audit

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AUSTRALIAN

Copyright © Australian Universities Quality Agency 2006

Level 10, 123 Lonsdale Street

The Australian Universities Quality Agency receives financial support

PART 1: CONTEXT ...................................................................................................................................3

PART 2: PROCEDURES .........................................................................................................................15

PART 3: INFORMATION FOR AUDITEES.........................................................................................37

PART 4: INFORMATION FOR AUDITORS........................................................................................55

PART 5: ANCILLARY MATERIALS....................................................................................................79

AUQA works with each auditee to tailor the process as appropriate.

USE OF THIS MANUAL

© Australian Universities Quality Agency 2006 Page 1

1.1 Context for AUQA

1.2 AUQA’s Objectives

The Objectives of the company as stated in its Constitution are:

1. to arrange and manage a system of periodic audits of quality assurance arrangements

© Australian Universities Quality Agency 2006 Page 3

1.3 AUQA Mission, Values and Vision

AUQA will be:

• Thorough: AUQA carries out all its audits as thoroughly as possible.

Page 4 © Australian Universities Quality Agency 2006

1.4 AUQA Structure

AUQA is established under Corporations Law as a not-for-profit company limited by guarantee.

AUQA has a Board of twelve Directors, composed as follows:

Details of current Directors are available from: www.auqa.edu.au/aboutauqa/abouttheboard/index.shtml

In summary, the functions of the Board are to:

© Australian Universities Quality Agency 2006 Page 5

1.4.4 Register of Auditors

1.5 Relations with Other Organisations

Page 6 © Australian Universities Quality Agency 2006

1.6 Quality Improvement

© Australian Universities Quality Agency 2006 Page 7

2. INTRODUCTION TO QUALITY AUDIT

2.1 Quality Audit and AUQA’s Investigations

© Australian Universities Quality Agency 2006 Page 9

2.2 Internally and Externally Derived Objectives

Page 10 © Australian Universities Quality Agency 2006

2.3 National Protocols for Higher Education Approval Processes

2.4.1 Value of Self-Review

2.4.2 Nature of Self-Review

© Australian Universities Quality Agency 2006 Page 11

2.5 Other Internal and External Reviews

Page 12 © Australian Universities Quality Agency 2006

2.6 Approach to Audit

© Australian Universities Quality Agency 2006 Page 13

3. STAGES IN AN AUQA AUDIT

Timeline Activity Agent

Week 1 Performance Portfolio submitted to AUQA Auditee

© Australian Universities Quality Agency 2006 Page 15

Page 16 © Australian Universities Quality Agency 2006

Week 31 Audit Report publicly released AUQA

© Australian Universities Quality Agency 2006 Page 17

4. BEFORE THE AUDIT VISIT

4.1 The Audit Process

4.2 Initiating the Process

4.3 Panel Selection

© Australian Universities Quality Agency 2006 Page 19

Page 20 © Australian Universities Quality Agency 2006

4.5 The Audit Panel’s Investigations (see also sections 3, 5 and 6)

4.5.1 The Performance Portfolio

4.5.2 Portfolio Meeting

© Australian Universities Quality Agency 2006 Page 21

4.5.3 Preparatory Visit