PSC INTOSAI Professional Standards Committee The auditing function of Supreme Audit Institutions A systematic mapping of the auditing assignments of selected

PSCINTOSAI Professional Standards Committee

The auditing function of Supreme Audit Institutions

A systematic mapping of the auditing assignments of selected

SAIs across the regions of INTOSAI


OBJECTIVES


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


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


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


METHOD


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


FINDINGS


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


The subject and audit criteria • Each branch of audit has its own audit criteria:– Financial audit– Compliance audit– Performance audit

• General distinction with regard to the subject– conclusion concerning a subject matter– subject matter information

• Criteria in public sector audit:– process– outcome– report


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


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


CONCLUSIONS AND RECOMMENDATIONS


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.


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


Next step !

Which reflections and additional comments do this report raise?

Documents

PSC INTOSAI Professional Standards Committee The auditing function of Supreme Audit Institutions A systematic mapping of the auditing assignments of selected