Audit processes

The VRQA adopts a rigorous, risk based audit regime.

Audits will be conducted:

  • upon initial registration
  • during the first 12 months of registration
  • during the final year of registration
  • for some extension to scope applications
  • on a risk management basis.

The audit process aims to ensure the compliance of an RTO with the necessary standards, conditions and guidelines for initial registration and/or continued registration.

The nature of the audit conducted will depend upon the purpose of the audit (ie initial registration audit, extension to scope audit or re-registration audit). The different types of audits are discussed in more detail below.

Initial registration audit

If the VRQA is satisfied that your institution meets the basic requirements for registration, it will conduct an audit of your institution. If the VRQA decides to audit your institution, it will send you a letter notifying you of its decision and request further details from you.

Phase one: assessment of financial health

Phase one of the audit will involve an assessment of the financial health of your institution by reviewing its compliance with Guideline 1 of the VRQA Guidelines for VET Providers (PDF - 195Kb). The information required to be submitted for assessment includes but is not limited to:

  • a strategic plan
  • a business plan
  • a three year financial plan, including financial indicators
  • details of financial management systems and student fees
  • confirmation that your institution's principal purpose is education.

For more details about the information the VRQA will require your institution to provide to commence phase one of the audit, see: Phase One Information Requirements - Delivery to VET Courses and to overseas students (Word - 164Kb)

Providing your institution completes phase one of the audit to the satisfaction of the VRQA, your application will proceed to phase two. Phase two will involve a site audit by a qualified, VRQA auditor. 

Please note: if your institution's principal place of business is a residential address, a commercial premises will need to be arranged for the day/s the site audit is to be conducted.

Phase two: assessment of compliance

Phase two of the audit involves assessing your institution's compliance with the remaining aspects of Guideline 1, as well as Guidelines 2 to 5 of the VRQA's Guidelines for VET Providers (PDF - 195Kb). Your institution's compliance with AQTF Essential Conditions and Standards for Initial Registration  will also be assessed during phase two of the audit.

Institutions should note that once registered as an RTO, their institution is subject to the AQTF Essential Conditions and Standards for Continuing Registration.

Post initial registration audit

A newly registered RTO will be subject to a further audit within 12 months of their initial registration. The purpose of this post initial registration audit is to confirm that the RTO satisfies the AQTF Essential Conditions and Standards for Continuing Registration and that the policies and procedures that were reviewed at the initial registration audit continue to be followed by the RTO after its registration and commencement of operations.

The VRQA will make a risk based determination whether the post initial registration audit will comprise a limited scope compliance audit or a more detailed full scope audit conducted on site. 

Where it has been determined that you will be subject to a limited scope compliance audit, you will be required to submit further information to the VRQA to enable the completion of the limited scope compliance audit. For an onsite audit, the VRQA will arrange for a qualified, VRQA auditor to attend your premises to assess your RTO's financial health and compliance with the AQTF Essential Conditions and Standards for Initial Registration and VRQA Guidelines for VET Providers (PDF - 195Kb).

Please note: if a site audit is required and your RTO's principal place of business is a residential address, a commercial premises will need to be arranged for the day/s the site audit is to be conducted.

Re-registration audit

After reviewing your RTO's application for re-registration, the VRQA will determine whether to audit your RTO and whether that audit will comprise a limited scope compliance audit or a more detailed audit that will be conducted on site. 

Where it has been determined that you will be subject to a limited scope compliance audit, you will be required to submit further information to the VRQA to enable the completion of the limited scope compliance audit. 

For an onsite audit, the VRQA will arrange for a qualified, independent auditor to attend your premises to assess your RTO's financial health and compliance with the VRQA Guidelines for VET Providers (PDF - 195Kb) and the AQTF Essential Conditions and Standards for Initial Registration.

Please note: if a site audit is required and your RTO's principal place of business is a residential address, a commercial premises will need to be arranged for the day/s the site audit is to be conducted.

Extension to scope audit

When an RTO applies to the VRQA to extend the scope of its registration, the VRQA will make a risk based assessment of whether an audit is necessary and the nature of any audit before the extension to scope request is granted.

Non-compliance

The VRQA may, at its discretion, reject an application for registration as a training provider if it considers that an applicant is unable to demonstrate compliance.

RTOs must comply with relevant conditions, standards and guidelines at all times post initial registration. If, subsequent to initial registration as training provider, a RTO is found to be in breach of the relevant standards, conditions and guidelines for continued registration, it will be advised of its non-compliance and must rectify all issues of non-compliance. Failure to do so within an appropriate timeframe may result in the cancellation or suspension of its registration. The RTO will be consulted about any action taken to suspend or cancel its registration.

Compliance is assessed against the relevant standards and guidelines: