The JPS Audit Specialists suspension exposed serious flaws in auditor oversight. The NDIS Commission imposed conditions on JPS after discovering the company promoted consultancy services to providers it was auditing. This breach of impartiality undermined the audit process and highlighted the importance of proper auditor vetting.
For NDIS providers selecting new auditors, thorough due diligence is essential. This checklist helps ensure you choose ethical, qualified auditors who maintain independence and deliver objective assessments.
Verify Accreditation Status
Start with the fundamentals. Only approved quality auditors can assess NDIS compliance. Check the official NDIS Commission list of approved auditors before engaging any audit body.
Confirm JASANZ accreditation status. The Joint Accreditation System of Australia and New Zealand regulates auditor behaviour using NDIS auditor guidelines and a Code of Conduct. JPS’s accreditation was suspended alongside their NDIS approval, demonstrating how seriously JASANZ treats compliance violations.
Ask for current accreditation certificates and verify them directly with JASANZ. Legitimate auditors will provide documentation without hesitation.
Assess Independence and Conflicts
The core issue with JPS was conflict of interest. When evaluating potential auditors, ask direct questions about their business structure:
- Do you offer consultancy, training, or advisory services?
- How do you separate audit functions from other business activities?
- What policies prevent conflicts of interest?
- Can you provide written attestations about independence?
Quality auditors should have clear policies preventing them from offering consultancy services to audit clients. They should also maintain separate teams for different service lines.
Review Professional Standards
Examine the auditor’s track record and professional approach. Request references from similar organisations and contact them directly. Ask about:
- Audit quality and thoroughness
- Professional conduct during site visits
- Timeliness of report delivery
- Post-audit support and communication
The NDIS Commission meets regularly with approved auditor bodies to discuss expectations and provider feedback. Reputable auditors participate in these discussions and implement feedback constructively.
Evaluate Communication Practices
Transparent communication prevents misunderstandings and builds trust. During initial discussions, assess how the auditor explains their process:
- Do they clearly outline what the audit involves?
- Are they transparent about costs and timelines?
- Do they answer questions directly without evasive responses?
- How do they handle complaints or concerns?
Document Everything
Create a formal evaluation process documenting your auditor selection. Keep records of all communications, quotes, and references. This documentation protects your organisation and demonstrates due diligence to the NDIS Commission if questions arise.
Understand Audit Scope
Ensure the auditor understands your specific requirements. Different registration groups require different audit approaches. The auditor should explain which NDIS Practice Standards apply to your services and how they will assess compliance.
Verification audits differ significantly from certification audits. Make sure your chosen auditor has experience with your audit type and can explain the process clearly. Understanding these differences is crucial – you can learn more about NDIS mid-term audit requirements and how they impact your audit selection.
Monitor Ongoing Compliance
Auditor oversight doesn’t end with selection. Monitor their performance throughout the engagement:
- Are they following agreed timelines?
- Do they maintain professional standards during site visits?
- Are they transparent about findings and recommendations?
Red Flags to Avoid
Be cautious of auditors who:
- Promise guaranteed audit outcomes
- Offer discounted rates for additional services
- Pressure you to engage consultancy services
- Cannot provide clear conflict of interest policies
- Have recent accreditation issues or suspensions
Professional Support
Selecting the right auditor requires expertise and careful evaluation. VCCG helps providers assess potential auditors and make informed decisions. Our compliance specialists understand audit requirements and can guide you through the selection process. Consider attending our NDIS compliance workshops to better understand what makes an effective audit partnership.
Concerned about choosing the right auditor after the JPS incident? VCCG provides expert guidance on auditor selection and helps you implement proper vetting processes. Contact us today to ensure your next audit maintains the highest standards of independence and professionalism.