Public entities should select auditors only after considering five basic steps for an effective audit procurement process, as follows:
Step 1: Planning (determining what needs to be done and when).
Step 2: Communicating Audit Requirements and Soliciting Proposals (writing a clear and direct solicitation document and disseminating it widely).
Step 3: Selecting a Qualified Auditor (authorizing a committee of knowledgeable persons to evaluate the ability of prospective auditors to effectively carry out the audit).
Step 4: Written the Agreement: Documenting Expectations (documenting the expectations of both the entity and the auditor).
Step 5: Monitoring the Audit: Ensuring a Quality Audit (periodically reviewing the progress of that performance).