Reporting on internal control in the light of the results of the survey of the Subcommittee on Internal Control Standards

Maria Sieklucka Senior Public Audit Expert Department of Environment May 2014

Strenght of accountability

Changes in the public service environment Unparalleled challenges faced by the public sector Strong commitment to integrity, good governance, ethical values, transparency and the rule of law 2

Transparency and reporting – the way of achieving good governance and delivering effective accountability

Internal control in public sector organisations needs to be relevant to specific characteristics of these organisations and to the changes faced by the public sector Slow shift of focus from purely financial aspects related to the area of management and planning Growing importance of using appropriate methods and tools to target effects, outcomes and to proceed with uncertainty 3

The basics of reporting on internal control in the light of INTOSAI GOVs INTOSAI GOV 9100

– Guidelines for Internal Control Standards for the Public Sector

INTOSAI GOV 9110

– Guidance for Reporting on the Effectiveness of Internal Controls: SAI Experiences in Implementing and Evaluating Internal Controls 4

Survey – aim and scope

   The aim: the extent to which internal control reporting by public sector entities exists, the forms and the underlying frames of reference the SAIs’ involvement in reporting on internal control updating INTOSAI GOV 9110 on internal control reporting Answers from 64 INTOSAI members from all over the world     The scope: legal and organisational framework for reporting on internal control the scope of internal control assessment and reporting on internal control by public sector entities assessment of reports on internal control and auditing of internal control an opinion on the revision of INTOSAI GOV 9110 Guidance for Reporting on the Effectiveness of Internal Controls: SAI Experiences in Implementing and Evaluating Internal Controls 5

broad and explicit distinctions in the scope and range of the legal obligation regarding reporting on internal control in the public sector

Conclusions

common approach among public sector entities to assess their internal control systems on a regular and systematic basis involvment of internal auditors and visible commitment of the national SAI in the assessment of reports on internal control and auditing of internal control positive opinion on revision of INTOSAI GOV 9110 6

Weak points of reporting

narrow scope and range of obligation to report in most of the countries established reporting to the public only in a few countries implementation of objectives and tasks performance u c c e s s 7

Further improvement of reporting raising awareness about the importance and relevance of effective internal control in public sector underlining the necessity to fulfil accountability obligations increasing SAIs ’ role in promotion of good practices in the assessment of reports on internal control and auditing of internal control revision of INTOSAI GOV 9110 S U C C E S S

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Thank you

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