Transcript The INTOSAI Framework of ISSAIs and INTOSAI GOVs

The auditing function of
Supreme Audit Institutions
A systematic mapping of the
auditing assignments of selected
SAIs across the regions of INTOSAI
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INTOSAI Professional Standards Committee
OBJECTIVES
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INTOSAI Professional Standards Committee
Background
• Harmonization Project
– to strengthen the consistency of the professional
standards
– provide general recommendations on auditing for
all SAIs
– draft due process for developing, revising and
withdrawing ISSAIs and INTOSAI GOVs
– the need to update the fundamental auditing
principles
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INTOSAI Professional Standards Committee
Objectives
• Gather information on audit assignments in the mandates
of SAIs:
– scope, subject, criteria
– resolve of the audit
– reporting to intended users.
• Develop distinctions between different kinds of
assignments:
– to provide a statement of assurance
– other assignments
• Mapping the mandates of SAIs
– to obtain an overview of the different legal mandates of SAIs in
relation to the audit assignments
– to define a “common language” for explaining and comparing
the tasks of SAIs across their different national settings
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INTOSAI Professional Standards Committee
Context
• The need for restructuring level three in the
ISSAI Framework
• The initial assessment is a mapping of selected
SAI mandates
– requires a conceptual framework
• INTOSAI needs a coherent logical consistent
framework of standards for SAIs
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INTOSAI Professional Standards Committee
METHOD
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INTOSAI Professional Standards Committee
Method
• Conceptual framework
– Well defined concept in a glossary as basis for the
mapping
• The survey
– Collection of data with assistance from the
regional representative
– 39 selected SAIs
• Comparison
– Categorizing similarities and differences
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FINDINGS
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The scope of the audit assignment
• The scope of the mandate is defined in
different ways
• Detailed and less detailed audit assignment
• Conditions for the conduct of audits by the SAI
– Fixed tasks
– Discretionary tasks
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The subject and audit criteria
•
Each branch of audit has its own audit criteria:
–
–
–
•
General distinction with regard to the subject
–
–
•
Financial audit
Compliance audit
Performance audit
conclusion concerning a subject matter
subject matter information
Criteria in public sector audit:
–
–
–
process
outcome
report
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The conclusions to be reached
• Depending on the scope of mandate which is
defined in different ways
• Conclusions expressing assurance (reasonable
and limited assurance)
• Other types of conclusions
– an assessment
– an investigate audit
– a decision of discharge
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INTOSAI Professional Standards Committee
The intended users of SAI reporting
• Executive informed by the result of the audit
– during the process as contradiction
– information of the cabinet
• Parliament
– Request tasks reported to parliament
– Assessments reported to parliament
– Expressions of assurance on global level
parliament
• Head of state
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INTOSAI Professional Standards Committee
CONCLUSIONS AND
RECOMMENDATIONS
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INTOSAI Professional Standards Committee
Conclusions
• The legal mandates of SAIs are emphasizing audit assignments
as an integrated part of the governance system in a context of
accountability.
• The basic function of SAIs is
– to provide audit or assurance services by comparing
economic information with a framework for financial
reporting
– to produce knowledge derived from the conduct of audit
investigations, which creates the basis for the
implementation of corrective actions
• This is the central foundation for a future harmonization
project of the Fundamental Auditing Principles.
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INTOSAI Professional Standards Committee
Recommendations for the
harmonization project
•
•
•
•
•
The general function and powers of SAIs should be the
starting point
Maintain the three general branches of auditing
Distinguish between different styles of conclusion used by
SAIs :
– express assurance
– other styles
The need to recognize the tasks of Court of Accounts,
Auditor Generals as well as other SAIs in all INTOSAI regions
Reporting to different intended users by combining different
kinds of conclusions
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INTOSAI Professional Standards Committee
Next step !
Which reflections and additional comments do
this report raise?
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INTOSAI Professional Standards Committee