The purpose of due-diligence audits

Category: Audits

The purpose of due-diligence audits

Posted on by Sukh Sandhu

Due diligence is an important process to learn about when considering becoming a buyer for a registered training organisation (RTO). It is essential, before investing in a registered training organisation, that you have a solid understanding of the function that due-diligence audits serve.

These audits can be carried out by experienced RTO consultants in order to evaluate the organisation’s compliance with all applicable regulatory and legislative requirements, as well as the quality of the training that is being provided by the organisation, record keeping, and so on.

The findings of the audit are analysed to determine whether or not the organisation meets the criteria necessary to provide high-quality training. If the audit finds that the organisation is not meeting the required standards, the organisation will have the opportunity to correct the compliance issues in order to meet regulatory standards and guidelines.

The process of due diligence is very important because, if a regulatory body discovers that an organisation is not complying with their requirements, the regulatory body has the authority to take action against the organisation, which may include suspending or cancelling its registration.

Audits of due diligence are an essential component in achieving the goals of ensuring that the organisation you are planning to purchase is a compliant registered training organisation and gaining an understanding of the steps required to become one.

If you are able to gain an understanding of the goals of these audits, you will be able to select a training provider in which to invest your time, energy, and resources with the confidence that you are making an educated and informed choice.

Before diving into the specifics of a due diligence audit, it is essential to have a solid foundational knowledge of the various audit procedures that can be carried out on an RTO. Only then will you be able to fully comprehend what goes into this particular type of audit. The following are the two primary categories of audits:

  1. Financial audits
  2. Compliance audits

Audits of financial records are carried out with the purpose of determining an RTO’s overall financial health and stability.

On the other hand, compliance audits are centred on determining whether or not an RTO is in accordance with the Standards and the requirements set forth by legislation.

Audits of compliance with due diligence requirements are one type of audit. Independent auditors and consultants are the ones who carry them out. An RTO’s compliance with the Standards and its ability to continue business in a financially sustainable manner are two of the primary foci of a due diligence audit, both of which are intended to serve as assurances that the audit was carried out properly.

During a due diligence audit, the auditors will look at a variety of factors, including the following:

  • The extent to which the RTO complies with the Standards
  • The financial viability of the RTO
  • The RTO’s various marketing activities and endeavours.
  • The procedures for training and assessing students at the RTO
  • Management and governance structures that are in place for the RTO.

If there is reason to believe that an RTO is not adhering to the standards, the regulatory bodies have the authority to carry out investigations and carry out audits on the RTO in question. Therefore, if you are considering buying a registered training organisation (RTO), you need to understand the following:

  • any non-compliance on the part of an RTO’s historical records and data could become a source of stress for you.
  • there may be training and assessment resources available to organisations but they may not be compliant with the regulations
  • there may not be sufficient facilities, equipment, and resources for conducting compliant training and assessments
  • Training organisations may not have compliant trainer files and records

You will benefit from a due-diligence audit because:

  • You can gain a better understanding of the efficiency with which training programmes are being run by conducting a due-diligence audit.
  • You can also gain a better understanding of stakeholders’ needs analysis by conducting a due-diligence audit.
  • An RTO can receive helpful feedback about their level of compliance with the applicable standards through a due-diligence audit.
  • You will have a great opportunity to understand the standards and requirements necessary to operate in the training and education industry if you participate in a due-diligence audit.

When an RTO is registered, it indicates that the organisation has satisfied the prerequisites necessary to begin conducting education and training business. On the other hand, this does not necessarily imply that the RTO will always be in compliance with the applicable standards and regulations. Audits of an RTO’s compliance with applicable regulations and the quality of the training it offers are absolutely necessary in order to fulfil the requirements of due diligence.

Does your registered training organisation need an audit by CAQA auditors? Feel free to reach out to us if this is the case.

 

Set boundaries, establish guidelines, and work within them.

Posted on by Sukh Sandhu

Organisations providing training services have a responsibility to ensure that their activities are carried out in a manner that is compliant with the expectations of the relevant regulatory bodies. This includes setting boundaries and establishing guidelines for staff and clients.

As a training organisation, it’s important to set boundaries and establish guidelines. This will help you stay within the parameters of your organisation, and ensure that you’re providing the best possible training service to your clients and staying compliant with the regulatory requirements according to the expectations of the regulatory bodies such as ASQA.

Some boundary setting may be required in order to:

  • Maintain a comprehensive policies and procedures framework
  • Maintain high-quality training services
  • Ensure legal and ethical compliance with organisational policies and external regulation
  • Facilitate positive working relationships between trainers, trainees and clients.
  • Organisational boundaries may include:
    • Physical space: Where is training allowed to take place? Are there any dangerous areas off-limits?
    • Time: What are the start and finish times for training sessions? Is there an allotted time for breaks?
    • Materials: What materials or equipment can be used during training? Are there any dangerous materials that should be avoided?
    • Behaviour: What behaviour is expected of trainers and trainees during training sessions? Are there any rules about speaking or interacting with others?

It’s important to communicate these boundaries to all involved in the training process so that everyone is clear on what is expected of them. By setting and enforcing these boundaries, you can help to ensure a safe, positive and productive learning environment for all.

There are a few things to keep in mind when setting boundaries and establishing guidelines:

The type of organisation you are running: What are the specific requirements of the regulatory body that you need to comply with? Are there any industry-specific standards that you need to adhere to?

Your clients: What are their expectations and needs? How can you best meet those needs within the confines of your organisation’s boundaries and guidelines?

Your staff: What do they need to know in order to carry out their roles effectively? What are their capabilities and limitations?

Your resources: What do you have available to you in terms of time, money and manpower? How can you make the most of what you have available?

Define the scope of your services. What kind of training do you offer? What are your areas of expertise? Make sure that you’re clear about what you can and cannot offer so that you can set the appropriate expectations with your clients.

Make sure your boundaries are realistic. If you set too many restrictions, you’ll likely find yourself unable to provide the training that your clients need. Likewise, if you set too few boundaries, you may find yourself overstepping your bounds and causing problems for your organisation.

Be clear about what your boundaries are. Your clients should know exactly what they can and cannot do during their training sessions. This will help them stay within the bounds of your organisation, and avoid any potential misunderstandings.

Enforce your boundaries. If you find that your clients are constantly pushing the limits of your boundaries, it’s important to take action. This may mean terminating their contract or providing them with a warning.

Communicate with your clients. Throughout the training process, it’s important to keep your clients updated on your boundaries and guidelines. This will help them stay informed, and avoid any potential surprises. Make sure that all your RTO stakeholders understand what your policies are and how they will be enforced. This will help them know what to expect from your service and avoid any surprises.

Be clear about your pricing. Make sure that your clients know how much your services cost so that there are no surprises down the road.

Follow up with your clients after they’ve attended a training session. Make sure that they’re satisfied with the service that they received and address any concerns that they may have.

By following these strategies, you can ensure that you’re setting appropriate boundaries and establishing clear guidelines for your training organisation. This will help you provide the best possible service to your clients, and avoid any potential problems.

If you have any questions about setting boundaries in your training organisation, please get in touch with us today. We’d be happy to help!

Message from the CEO

Posted on by Sukh Sandhu

Message from the CEO

We need to make sure we eliminate any issues that lead to decreased student engagement and an increase in drop-out rates. We need to think about and execute support for students who want to complete a VET qualification and follow their interests or passion. Coming out of lockdown, we will need to move to a stable economy where our graduates have the knowledge or skills that employers need.

This month we are launching our “Your questions and our answers series”, a free webinar on the last Friday of the month between 12 to 1 PM. If you have questions do not hesitate to send them to us and we will try to answer as many of them as possible during the live sessions. We have more information in the “Your questions and our answers series” article. Join us for an hour of free compliance education! All attendees will receive certificates of attendance from us.

As always, if you require assistance in any way, please contact us via email at info@caqa.com.au.

Sukh Sandhu
CEO

Why organisations should prioritise systematic continuous improvement as a strategic priority

Posted on by Sukh Sandhu

Continuous improvement is one of the most important ways to ensure compliance with regulatory operations and successful organisational performance. By continuously identifying areas for improvement, education and training organisations can ensure compliance to the regulatory requirements and standards, improve their performance and also gain an edge over their competitors.

Continuous improvement requires strategic attention by leaders and a culture that prioritises continuous improvement as a strategic priority.

One of the key benefits of prioritising systematic continuous improvement is that it provides organisations with an opportunity to develop and sustain a competitive advantage in their industry or market.

In order to stay ahead of the competition, organisations should prioritise systematic continuous improvement as a strategic priority. This is because it will lead to more innovation and competitive advantage.

The term “culture of continuous learning” has been coined by Carol Dweck who defined this as “a process of creating conditions that lead to an organisation where learners are operating at their full potential”.

Organisations can achieve this by developing a new mindset that is driven by continuous improvement. This means that they will need to transform their culture into a culture that values continuous improvement. If they cannot do this, then they are in danger of becoming obsolete already in the future when new technologies come into play.

Systematic continuous improvement has many benefits like improved customer satisfaction, improved revenue generation, improved brand value and improved employee engagement.

There is a long list of reasons why organisations should prioritise systematic continuous improvement as a strategic priority. These include:

– It is an approach that celebrates change and challenges the status quo;
– Improving the performance of an organisation through improved customer service and increased revenues
– Continuous innovation and creation of new products/services for future customers
– Improved profitability
– Improved quality of life of employees
– It is a customer-focused strategy: businesses must use an innovative approach to create value for customers;
– it facilitates learning opportunities: through systematic continuous improvement, businesses can learn from mistakes and drive innovation
– Increasing profitability and performance
– Reaching a company’s goals and objectives with greater certainty
– Saving time and effort when implementing new strategies from start to finish
– Reducing the risk of making mistakes
– Making good decisions in uncertain, fast-moving environments

The most compelling reason for prioritising systematic continuous improvement is that it increases the chance of achieving the business goals.

Converting the audit quality practices to system-centred rather than individual-auditor-centred

Posted on by Sukh Sandhu

When we talk about “audit quality practises,” we talk about the factors that influence the outcomes of audits conducted on behalf of a regulatory body, such as the behaviour of auditors, the decisions they make, the approaches they take and the way they act in order to ensure that audit outcomes are appropriate, suitable, relevant, and based on facts rather than personal opinions and biases against an individual or organisation.

In this article, we discuss a number of the components of audit quality practises that are important to consider.

Standards to audit the regulatory body and its officers

The million-dollar questions are: who audits the auditors, and can they achieve consistency in their decisions? Despite the fact that some government agencies are auditing some of their actions, the vast majority of the judgments and practises of the regulatory body go unnoticed and unanswered to anyone. A clear set of standards should be established for the regulatory body, and clear guidelines should be developed for their auditors. The audit practices, boundaries and guidelines should also be clearly defined.

External complaints resolution department

How can genuine complaints be resolved when the freedom of information (FOI) and complaints handling are controlled by the same individual and department within ASQA? Yes, these approaches are acceptable for a brief period of time in order to conceal malpractices, but for how long will they remain hidden from the rest of the industry? How can a regulatory agency establish confidence with its stakeholders if there is no credible external entity to evaluate and review its operations and procedures? On paper, the Ombudsman is there to investigate their decisions; yet, how many times have they made decisions that were against the regulating body? Where are those statistics and how do those decisions make the regulatory body change their practices? Complaints and feedback from stakeholders are opportunities to improve the system, framework, and processes. If you ignore investigating complaints and feedback from stakeholders or just have blind faith in what your auditors tell you, then you will never be able to improve any practices.

Professional development workshops for auditors

Workshops for professional development are essential for everyone in the sector, and auditors are no exception. As representatives of a government agency, they hold a position of authority and influence. As a result, they require far more professional development and personal development sessions than anybody else working in the education and training industry. Regular professional development workshops would assist them in understanding how they should strictly adhere to regulatory rules rather than rely on their own personal judgments, prejudices, and opinions to make audit decisions.

Internal validation and moderation meetings

Internal validation and moderation meetings for audit outcomes and practices are required in order to establish high-quality audit practices. Decisions should be made in accordance with what the system suggests, rather than what the individual recommends. In order to train the auditors on what can and cannot be accepted in a black and white manner, set templates, policies, practices and protocols should be used. The outcome of these moderation meetings should be shared with the industry in order to inform them of what was discussed, which tactics were changed, and why and how the strategies will affect the training organisations in question. Every time a new auditor audits the processes and documentation of a training organisation, the results should not be a surprise to the training organisation or consultants representing them in the audit.

Audit reports

The audit reports should not only cover non-compliances, but they should also include where the compliance has been found. In a number of instances, the same auditor has made different judgments over a period of a few weeks, and this type of activity should be considered unacceptable by any regulatory authority.

When it comes to audit reports, the most important purpose is to have reasonable certainty that the report as a whole is free of any misrepresentation and errors; and to ensure that any noncompliance issues that are identified are clearly reported to all parties through the audit report.

In order to ensure that all stakeholders have faith in the system and are fully informed, the quality of audit reports is vital to an effective and efficient regulatory system. The purpose of audit quality procedures is to instil confidence in the correctness and dependability of audit practises. It is vital that audit quality and consistency of audit execution be consistently enhanced in order to retain public confidence in the regulatory system.

These are just a few of the critical improvements that must be included in the new regulatory framework to ensure its success. What other changes would you like to see implemented in audit activities? Write to us and tell us about your experiences interacting with the regulatory body and your thoughts on the matter.

We are interested in listening to your suggestions, feedback and stories, please email us at info@caqa.com.au.

Part 1- The trainer and assessor files

Posted on by Sukh Sandhu

Compliance of your trainer records is a must for any Registered Training Organisation. If you do not know what you are looking for, you will always have difficulty finding it. The purpose of this article is to provide you with the required information and resources to ensure you can audit and review your trainer and assessor files to be compliant with the current regulatory requirements and standards.

Legislative and regulatory requirements:
Trainers and assessors must comply with the following SRTOs 2015 requirements:

  • Clauses 1.13 – 1.16
  • Trainers and assessors who deliver any Australian Qualifications Framework (AQF) qualification or skill set from the Training and Education Training Package (TAE10, TAE or its successor) are also required to meet additional requirements, outlined in Clauses 1.21 – 1.24.

Requirements for all trainers and assessors:
Trainers and assessors must meet the following criteria and guidelines:

  • the vocational competencies at least to the level being delivered and assessed
  • current industry skills directly relevant to the training and assessment being provided, and
  • current knowledge and skills in vocational training and learning that informs their training and assessment.

In addition, training and assessment may only be delivered by persons who have:

  • Certificate IV in Training and Assessment (TAE40110 or TAE40116), or its successor*, or
  • A diploma or higher level qualification in adult education.

Your RTO must also ensure that all trainers and assessors undertake professional development in the fields of:

  • knowledge and practice of vocational training, and
  • learning and assessment, including competency-based training and assessment.

Trainer’s CV
An RTO must hold valid files for all Trainers and Assessors (this includes files for contractors and employees). A valid file includes the following information:

  • A current copy of the trainer/assessor’s CV (usually updated on an annual basis)
  • The RTO’s name, the position title and a description of the job-role
  • Details about the vocational competencies that the trainer/assessor holds
  • Details about the vocational competencies that the trainer/assessor is delivering/assessing.
  • Information about industry currency and skills
  • List of VET professional development activities
  • Confirmation that it is a true and up-to-date copy of the CV (usually means the trainer/assessor initialling each page of the CV to confirm the accuracy of the information provided)
  • Signature and date of last update of the CV

It is also recommended that all resumes/CVs are verified for currency and authenticity through the undertaking of reference checks.

Reference:
Fact sheet—Meeting trainer and assessor requirements, published by ASQA https://www.asqa.gov.au/sites/g/files/net3521/f/FACT_SHEET_Meeting_trainer_and_assessor_requirements.pdf

(To be continued in the upcoming newsletter and blogs)

Part 1- The importance of internal audits

Posted on by Sukh Sandhu

This is our first article in the series regarding “Internal audits”. Our main intention is to provide you with the required knowledge and skills, and equip you with the necessary resources to ensure you can audit your organisation against quality frameworks and standards effectively and efficiently.

What are Internal audits?
Internal audits are an independent, collaborative, impartial, objective assurance and consulting activity formulated to add value and improve operations of an organisation. It assists the organisation to bring a systematic, disciplined approach to effectively evaluate, monitor and improve the effectiveness of risk management, internal control and governance processes. Internal audits act as a catalyst for a strong risk and compliance culture within an organisation.

What are the benefits of conducting internal audits?
Internal audits act as a catalyst for enhancing an organisation’s governance, risk management and controls by presenting insight and recommendations based on interpretation and examination of data and business practices and processes. There are a number of other benefits, such as:

  • Audits assess an organisation’s performance and practices against the regulatory framework, guidelines and legislative/statutory instruments.
  • Audits provide management of an organisation with information on the effectiveness of risk management, control and governance processes.
  • Audits evaluate achievement of organisation objectives
  • Audits ensure assets are safeguarded and secure.
  • Audits assess efficiency, effectiveness and the economy of business activities.
  • Audits review operations and processes to ensure they are protected from any fraud, malpractice or corruption
  • Audits increase financial reliability and integrity
  • Audits help to improve the “control environment” of the organisation
  • Audits are great learning lessons for all parties involved
  • Audits identify the business areas that require urgent attention
  • Audits identify opportunities, accountabilities and risks
  • Audits help management understand what it needs to know, when it needs to know it and how it needs to be done or implemented.
  • Audits identify better ways of doing things by recommending how to improve internal controls and governance processes

What is an audit scope?
The scope of audit refers to the focus, extent, boundaries and range of the activities covered by an internal audit. It includes:

  • The objectives for conducting an audit
  • Nature and extent of auditing procedures and activities performed
  • The organisational units that will be examined
  • Location of the audit
  • Time-period that will be covered
  • Related activities not audited in order to define the boundaries of the audit.

The audit scope, ultimately, establishes how deeply an audit is required to be performed.

What is usually included in an RTO internal audit?
The internal audit is usually a documented process that includes the evaluation of the following:

  • Quality framework and standards and legislative guidelines
  • Training packages and the companion volume (including the implementation guides)
  • Assessment and learner resources
  • Training and assessment strategies
  • Trainers and assessors
  • Industry consultation and engagement and how improvements are made from them
  • Recognition of prior learning and credit-transfers
  • Transitioning planning, processes and procedures
  • Student certification and completion processes and procedures
  • Third-party agreements and monitoring processes and procedures
  • Student support, progression and welfare processes and procedures
  • Student and staff Interviews and questionnaires
  • Student records, student files and student data analysis
  • Enrolment and pre-enrolment processes and procedures
  • Marketing and advertising practices and procedures
  • Regulatory compliance and governance practice
  • Policies and procedures an organisation uses
  • Other organisational practices and systems

Who can be an internal auditor?
An Internal auditor can be anyone who has the required knowledge, skills and experience to objectively, professionally and unbiasedly evaluate your organisation’s processes and procedures to identify opportunities for improvements.

It can be an internal staff member or an external person such as a compliance consultant.

The required knowledge, skills and experience of internal auditors will be discussed in our next edition.

(To be continued in the upcoming newsletter and blogs)

Various phases of the assessment and validation processes (Part 3)

Posted on by Sukh Sandhu

This is Part 3 of the article, where we are discussing the different phases of the validation processes an RTO should be following to ensure they meet regulatory requirements and industry expectations.

In the previous articles, we discussed the following regarding the validation of assessment resources:

  • Explanation of assessment validation
  • Typical benchmarks used during the validation processes
  • Stages of validation (before, during and after the assessment judgements)
  • Regulatory requirements for conducting validation
  • Assessment system
  • Who conducts validation?
  • How is validation different from moderation?
  • How external consultants can help you with validation of assessment and learner resources?

In this month’s article, we will explore the regulatory requirements around validation of learner resources.

Learner resources
Learner resources are also known as “learning resources”, “training resources”, or “companion guides”. The purpose of these resources is to support learners with the underpinning knowledge required to participate in skill-based tasks. These resources include a range of activities to support the learning including, formative assessments and activities, links to further reading, workplace activities and procedures (where relevant to the qualification) etc.

Why you need to validate your learner resources
The VET regulator, ASQA does not currently prescribe the methodology Registered Training Organisations (RTOs) should use to meet the requirements of the relevant standards, training packages and accredited courses for learner resources.

But their expectations under the Standards for Registered Training Organisations, 2015, is to ensure your learner resources meet the following legislative guidelines:

Standard 1, Clause 1.3 (c): Learning resources to enable learners to meet the requirements for each unit of competency, and which are accessible to the learner regardless of location or mode of delivery.

The guidelines further state that:

Learning resources

  • To ensure students are able to obtain and absorb the required knowledge and skills prior to assessment, carefully choose and plan the learning resources you will use to guide them.
  • Identify these resources in your strategy to ensure you obtain full coverage of all required areas.

Therefore, we strongly recommend validating your learner resources to ensure your organisation complies with the relevant legislative requirements and guidelines.

The process of validation of learner resources
The validation of learner resources is not very different from the validation of assessment resources. All learner resources must also meet training package requirements and industry expectations.

Who can be involved in validating the learner resources
There are currently no regulatory requirements around who can participate in the validation of learner resources, however, it should be no different from the validation of assessment resources.

It should be a collective team effort and you must include the following people to validate your learner resources:

  • Subject matter experts
  • Trainers and assessors
  • Compliance or administration manager
  • Industry experts
  • You may also include compliance experts as well as they usually have current and up-to-date knowledge around audit and compliance expectations and requirements.

Stages of validation for learner resources
Stage 1: Validation before using the learner resources
Validation before using the learner resources is to ensure the resources meet training package requirements, how the information is presented and the quality of the formative assessments. This is to ensure the student gains the required skills and knowledge to participate in the summative assessments later. Your review of the learner resources templates in detail ensures they are compliant and meet regulatory standards and Industry requirements.

Stage 2: Validation during or after using the learner resources
Your validation of learner resources during or after use is to ensure:

  • Your resources meet client expectations
  • Your resources meet training package guidelines and provide all required underpinning knowledge to your students
  • Your resources are current and up-to-date in terms of the latest trends, technology and industry guidelines and practices.

In the next and final article, we will discuss:

  • Why you need to keep validators information
  • Why validation of assessment and learner resources should be systematic and ongoing
  • How can you schedule validation
  • What is statistically valid sampling
  • Validation outcomes

(To be continued in the upcoming newsletter and blogs)

Assessment issues that may have an impact on your RTO audit (Part 2)

Posted on by Sukh Sandhu

This is Part 2 continuing from the previous newsletter. As discussed in Part 1 of this article, there are a number of assessment-related issues that may affect your audit outcome. You should ensure your assessment resources, therefore, meet the following criteria:

  • The context and conditions of assessment. For example, an assessment tool could be developed to cater for a particular language, literacy and numeracy requirements, the learner’s workplace experience or other learner needs that require reasonable adjustment.
  • The context of the assessment may also take into account assessments already completed, and the competencies demonstrated in these assessments. By looking at the context, you can consider the conditions under which evidence for assessment must be gathered.
  • All activities are conducted adequately using the required:
    • equipment or material requirements
    • contingencies
    • specifications
    • physical conditions
    • relationships with team members and supervisors
    • relationships with clients/customers
    • timeframes for completion.
  • Assessment methods or tasks are suitable to the requirements of the units of competency and students are assessed on the tasks and activities according to the requirements of the training package.
  • The language used is simple English
  • The evidence required to make a decision of competency is clearly outlined
  • The types of activities and tasks student need to perform are clearly outlined
  • The level of performance required for each assessment activity is clearly outlined
  • Adequate exposure to workplace conditions, including appropriate simulated environments
  • Sufficient knowledge-based assessment tasks and activities such as written questions and case studies etc.
  • Sufficient practical based assessment tasks and activities such as projects, role plays, workplace tasks and observations etc.
  • Assessment resources are error-free and free from any grammar, copyright or plagiarism issues

It is a wise decision to get your training and assessment strategies and resources validated by independent industry experts to get honest feedback and an unbiased opinion.

Various phases of the assessment and validation processes (Part 2)

Posted on by Sukh Sandhu

This is Part 2 of the article, where we are discussing the different phases of the validation processes an RTO should be following to ensure you meet regulatory requirements and industry expectations.

In the previous article, we discussed the following regarding the validation of assessment resources:

  • Explanation of assessment validation
  • Typical benchmarks used during the validation processes
  • Stages of validation (before, during and after the assessment judgements)

In this month’s article, we will explore the regulatory requirements around assessment validation.

Regulatory requirements for conducting validation

According to the Standards of Registered Training Organisations (RTOs) 2015, you are required to implement a quality review process (Clauses 1.8, 1.9, 1.10 and 1.11).

Clause 1.8a requires that the RTO’s assessment systems comply with the assessment requirements of the relevant training packages or VET accredited courses.  

Clause 1.8b requires RTOs to ensure that the evidence gathered is valid (one of the Rules of Evidence) and that assessment processes and outcomes are valid (one of the Principles of Assessment). 

These requirements must be met and demonstrated in all assessment policies, procedures, materials and tools of the RTO. Clause 1.8 primarily relates to the development (or purchase) of the RTO’s assessment resources.

Assessment validation has been strengthened in the Standards for RTOs and the requirement is to:

  • Develop and implement a comprehensive plan for ongoing systematic validation of assessment that includes all training products on the RTO’s scope of delivery (Clause 1.9)
  • Validate the assessment practices and judgements for each training product at least once every five years with at least 50% of products to be validated within the first three years of each five-year cycle (Clause 1.10)
  • Ensure that validation is conducted by one or more suitably qualified persons, who are not directly involved in the delivery and/or assessment of the training product being validated. (Clause 1.11).
  • These clauses relate primarily to the actual delivery and outcomes of the RTO’s assessment systems, including the performance of the RTO’s assessors.

Assessment system

Documents required for conducting an effective validation session, in the RTO’s assessment system, includes but is not limited to:

Validation related documents:

  • Validation plan
  • Validation schedule
  • Validation record or validation form
  • Validation register
  • Validation report form
  • Continuous improvement form
  • Continuous improvement register
  • Pre-assessment validation documents

Assessment resources:

  • Unit assessment pack/student pack
  • Trainer assessment pack/assessor pack
  • Mapping document
  • Assessment evidence according to a sample size

Other documents:

  • Training and assessment strategy
  • Feedback forms
  • Unit of competency
  • Companion volume/implementation guide
  • AQF framework
  • ACSF framework

You will be required to evaluate if the assessment resources meet:

  • Training package requirements (application, elements and performance criteria, foundation skills, performance evidence, knowledge evidence, assessment conditions)
  • Principles of assessment; fairness, flexibility, validity and reliability
  • Rules of evidence; valid, sufficient, authentic and current
  • The appropriate level of difficulties (AQF Level)
  • Provide sufficient and clear instructions
  • Record any appropriate adjustments

Who conducts validation?

Validation is a collaborative process. The team must hold collectively:

  • Vocational competencies and current industry skills relevant to the assessment being validated
  • Current knowledge and skills in vocational teaching and learning
  • The TAE40110 Certificate IV in Training and Assessment (or its successor) or the TAESS00001 Assessor Skills Set (or its successor).
  • Validators can be employees of your RTO, or you can seek external validators.

The trainer and assessor who delivered/assessed the training product being validated:

  • Can participate in the validation process as part of a team
  • Cannot conduct the validation on his/her own
  • Cannot determine the validation outcome for any assessment judgements they made
  • Cannot be the lead validator in the assessment team.

It is important to keep the records of all validation activities and validators as auditors might ask for it during audit activities and for managing continuous improvement processes at an RTO.

How is validation different from moderation?

Moderation is a quality control process aimed at bringing assessment judgements into alignment.

Moderation is generally conducted before the finalisation of student results as it ensures the same decisions are applied to all assessment results within the same unit of competency.

The requirement in the Standards to undertake validation of assessment judgements does not affect your RTO’s ability to undertake moderation activities, or any other process aimed at increasing the quality of assessment.

(ASQA, 2018)

(To be continued in the next newsletter)

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