The Queensland Audit Office (QAO) has developed a financial reporting preparation maturity model to help our clients improve their processes.
This model replaces our previous traffic light assessments for state government entities (noting we’ll continue to use traffic light assessments for local governments).
Our model accommodates the different structures and sizes of the organisations we audit. It incorporates more client-specific factors that influence reporting practices across the state public sector. It builds on our previous financial reporting assessment processes, fact sheets, and reports to entities and parliament.
The new financial reporting maturity model outlines the key components that support high quality and timely financial reports. It uses a matrix approach, with four assessment components described across four levels of maturity. The four components and the four levels of maturity are below.
We encourage entities to perform a self-assessment to determine the expected level of maturity that is commensurate with their business, and then benchmark the actual level of maturity to expectation.
We have developed a supporting self-assessment tool (available on our website). It provides a series of questions for each of the components and helps users to calculate the level of maturity for each.
QAO’s judgement will be involved in the principle-based assessment approach. We recognise that we will need to discuss our judgements with our clients, and we will also use your self-assessments.
We welcome feedback to make our new model and tool better for financial report preparers. Please discuss with your QAO engagement leaders and send any feedback to firstname.lastname@example.org.