Compliance Audit Subcommittee The history of CAS From 2004 to 2014 XII Annual meeting, Oslo 17th -...

Compliance Audit Subcommittee

The history of CASFrom 2004 to 2014

XII Annual meeting, Oslo17th - 18th of September

2014

Where everything started

Budapest 10 October 2004Working group on Compliance Audit

Origins of the committee

An audit

A systematic process of objectively obtaining and evaluating evidence to

determine whether information or actual conditions conform to

established criteria.

ISSAI 100 paragraph 18

Public sector auditing telling its own story

Which mean that it:

• Departs from mandates and the accountability of public sector entities in the use of public resources

• Is a part of national democratic systems

• Contributes to good governance

Three Audit types of INTOSAI

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Financial audit

The reliability of financial reporting

Performance audit

Economy Efficiency Effectiveness

Compliance auditCompliance with authorities

Financial Audit

Determining whether an entity’s financial information is presented in

accordance with the applicable financial reporting and regulatory

framework.

ISSAI 200 para.4

8

Performance audit

As carried out by SAIs, performance auditing is an independent, objective and reliable

examination of whether government undertakings, systems, operations,

programs, activities or organizations are operating in accordance with the principles of economy, efficiency and effectiveness

and whether there is room for improvement.

ISSAI 300 para. 9

9

Compliance audit

The independent asessment of whether a given subject matter is in compliance with applicable authorities identified as criteria. ISSAI 400 paragraph 12

Meaning:Compliance auditing is performed by assessing whether activities, financial transactions and information are in all material respect, in compliance with the authorities which govern the audited entity.

ISSAI 400 para. 12

What are they looking for?

Financial audit:

Material misstatements in financial statements?

Audit objective:

Is it in compliance with?

Is it economic, efficient and effective?

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Subject matter

ISSAI 100/400 – elements

PSCINTOSAI Professional Standards Committee

The Compliance Audit Guidelines - endorsed by INCOSAI in South Africa

2010 ISSAI 4000 - General

introduction to compliance audit

ISSAI 4100 - deals with compliance audit performed separately from the audit of financial statements, for example as a separate audit task or related to performance audit

ISSAI 4200 - deals with compliance audit related to the audit of financial statements

Written as consistent, stand-alone documents

Maintenance of ISSAI 4000 series:

2014 2015 2016

Project proposal to the PSC steering committee

Exposure draftto the PSC steeringcommittee.

Endorsement version to the PSC steering committee, the governing board and INCOSAI