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PSC INTOSAI Professional Standards Committee

PSC INTOSAI Professional Standards Committee. PSC Steering Committee meeting 30 – 31 May, Johannesburg, South Africa. Harmonisation of ISSAIs – Revision of the Fundamental Auditing Principles . Our previous discussions.

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PSC INTOSAI Professional Standards Committee

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  1. PSC INTOSAI Professional Standards Committee PSC Steering Committee meeting 30 – 31 May, Johannesburg, South Africa

  2. Harmonisation of ISSAIs – Revision of the Fundamental Auditing Principles

  3. Our previous discussions PSC SC Washington 2006 – ‘Fundamental Auditing Principles’ and guidelines based on a ‘dual approach’ PSC SC Yaounde 2006 and Manama 2007 – The PSC Survey: The use and needs for standards INCOSAI 2007 Mexico – The ISSAI Framework PSC SC Beijing 2008 – The INTOSAI Due proces PSC SC Brasilia 2009 – The revision of the Fundamental Auditing Principles PSC Regions Bruxelles 2010 – The auditingfunction of SAI’s: Recommendations on the revision of the Fundamental Auditing Principles PSC SC Copenhagen 2010 – Project proposal on ISSAI harmonisation – revision of the Fundamental Auditing Principles INCOSAI 2010 Johannesburg – South AfricaDeclaration on ISSAIs, launch of ISSAIs and of the ISSAI harmonisationproject PSC SC 2011 Wellington – The projectgroup’sfirstreport: The draft ISSAI 100, outlines of 200-400 and the purpose and authority of ISSAIs at the 4 levels of the ISSAI Framework

  4. Agenda • Overall progress • Draft ISSAI 100 • Draft ISSAI 300 • The planned draft ISSAIs 200 and 400 • Specific matters – withdrawal of the ‘old’ ISSAIs 100-400

  5. Shelmadene Petzer, INTOSAI Chair (South Africa) Chen You, INTOSAI 1. Vice chair (China) Luo Quan, INTOSAI 1. Vice chair (China) Juan Javier Perez-Saavedra, INTOSAI SAI database (Mexico) Sudhir Kumar, Chair of the Knowledge Sharing Comittee (India) Jonas Hallström, FAS (Sweden) Ian Johnston, FAS (UK) Beryl Davis, FAS (USA) Heather Keaston, FAS (USA) Jeanette Franzel, FAS (USA) Carlos Sampaio de Freitas, PAS (Brasilia) Gloria da Costa Bastos, PAS (Brasilia) Norbert Weinrichter, PAS (Austria) Tony Angleryd, PAS (Sweden) Mona Palsrud, CAS (Norway) Manfred Kraff, CAS (European Court of Auditors) Niels-Erik Brokopp, CAS (European Court of Auditors) Bahia Remaoun, CAS (European Court of Auditors) Mária Kysucká, CAS (Slovakia)

  6. The project groups’ work March 2011 - First projectgroup meeting Development of firstdraft ISSAI 100 Draftoutlines of ISSAI 200, 300 and 400 Feedback from the PSC SteeringComittee in June Discussion at meetings in FAS and CAS – writtencomments on firstdraft 300 in PAS First draftISSAIs 200, 300 and 400 ready from draftinggroups by October November 2011 - Second projectgroup meeting Cross-cuttingissues – draftingstyle and reference to the ISSAIs (authority) Agreement in principle in February 2012 Writtencomments to ISSAI 100 by the PSC SteeringComittee May 2012 – Third projectgroup meeting

  7. Goal A: Revise the ISSAI 100-999 Fundamental Auditing Principles in order to ensure that: - they describe the general role and auditing function of a SAI and are relevant and useful for all members of INTOSAI; - they provide overview and further references to the full set of ISSAIs where more operational guidance is provided; - they provide a consistent set of concepts and an improved link between ISSAI 1 The Lima Declaration and the new set of comprehensive guidelines that are launched in 2010

  8. ISSAI 100 - Fundamental Principles of Public Sector Auditing ISSAI 200 - Fundamental Principles of Financial Auditing ISSAI 300 - Fundamental Principles ofPerformance Auditing ISSAI 400 - Fundamental Principles of Compliance Audit

  9. How does it work as a package? Mandates of SAIs – provide for different types of audit work ISSAI 100 Fundamental Principles of Public Sector Auditing ISSAI 400 Compliance Auditing ISSAI 300 Performance Auditing ISSAI 200 Financial Auditing General Auditing Guidelines ISAs

  10. The ISSAI 100 provides the fundamental principles which are applicable to all public sector engagements whatever its form or context The ISSAI 200, 300 and 400 further elaborate on the principles to be applied in the context of financial auditing, perfomance auditing and compliance auditing. The principles contained in these documents should be applied in conjunction with the principles presented in ISSAI 100.

  11. Level 3 - Fundamental Auditing Principles Common for all SAIs – but each SAI apply the principles which are relevant Provides a basis for SAIs to: - develop auditing standards, or - adopt existing auditing standards which are consistent with the principles Level 4 General auditing guidelines - May be adopted as auditing standards by SAIs Guidelines on specific subjects - Knowledge sharing

  12. ISSAI 100 - Fundamental Principles of Public Sector Auditing ISSAI 200 - Fundamental Principles of Financial Auditing ISSAI 300 - Fundamental Principles ofPerformance Auditing ISSAI 400 - Fundamental Principles of Compliance Audit

  13. Plan for finalization • The ISSAIs 200 and 400 ready for approval by PSC SC by October 2012 • 2) The project group will rely upon the competencies of the subcommittees • A high level of engagement of the INTOSAI community will be ensured • - articles in INTOSAI Journal • - announce exposure of ISSAI 100-400 by15 October 2012 • - make drafts available at ISSAI website • - PSC chair to carry out any informal consultations deemed necessary in order to ensure that there is a genuine and strong support • - Exposure drafts presented to the Governing Board in November 2012

  14. Agenda • Overall progres • Draft ISSAI 100 • Draft ISSAI 300 • The planned draft ISSAIs 200 and 400 • Specific matters – withdrawal of the ‘old’ ISSAIs 100-400

  15. Due process Approval by Steering Committee Approval by Steering Committee Confirmation by GoverningBoard Endorsement byINCOSAI Maintenance responsibillity(subcomittees) Approval by Steering Committee Monitoring and regular reviews Exposure Draft Project Proposal Endors-ment version ISSAI / INTOSAI GOV Drafting by project group/ Subcommittee Public Exposure (90 days minimum) Initialassessment (Preliminary drafts) All comments published

  16. Confidence and assurance in public sector auditing • Depending on the purpose of the audit, the level of confidence may be communicated in different ways; • A) By providing an explicit statement on the level of assurance in an opinion in a standardized format or in a conclusion in a non- standardized form. • B) By providing a consistent and persuasive description of the audit objective, the evidence obtained, the findings, the conclusions and recommendations. • In both cases the audits are required to be objective and results are based on findings supported by sufficient and appropriate evidence.

  17. Elements of public sector auditing • The practitioner/auditor • - Responsible party • - Intended users • - Underlying subject matter • - Suitable criteria

  18. References to the ISSAIs Option 1: We conducted our audit in accordance with [national standards] based on (or consistent with) the Fundamental Auditing Principles (ISSAI 100-999) of the International Standards of Supreme Audit Institutions. Option 2 – if ISSAIs at level 4 is adopted as the auditing standard: We conducted our (financial, performance and/or compliance) audit (or audits) in accordance with the International Standards of Supreme Audit Institutions (on financial, performance and/or compliance auditing). May be added: The audit/audits was based on ISSAIs xxx [name of the ISSAI or range of ISSAIs] The financial audit guidelines (ISSAI 1000-1999) are based on the ISAs and can therefore not be referred to individually.

  19. 3 specific questions a) Is the level of flexibility of the requirements in ISSAI 100 at the right level? b) The ISSAI 200 will be based on the Financial Audit Guidelines/ISAs - but what about ISSAI 100? c) Glossary?

  20. Due process - Approval of exposure drafts • The steering committee approves: • that the exposure draft fulfills the purpose of the project in line with the directions of the approved project proposal and is of high quality; • that any overlaps and inconsistencies in the ISSAI framework in relation to the proposed text have been appropriately addressed, and • that the exposure draft can be submitted for public exposure.

  21. Agenda • Overall progres • Draft ISSAI 100 • Draft ISSAI 300 • The planned draft ISSAIs 200 and 400 • Specific matters – withdrawal of the ‘old’ ISSAIs 100-400

  22. Agenda • Overall progres • Draft ISSAI 100 • Draft ISSAI 300 • The planned draft ISSAIs 200 and 400 • Specific matters – withdrawal of the ‘old’ ISSAIs 100-400

  23. Agenda • Overall progres • Draft ISSAI 100 • Draft ISSAI 300 • The planned draft ISSAIs 200 and 400 • Specific matters – withdrawal of the ‘old’ ISSAIs 100-400

  24. INTOSAI Due Proces: “ISSAIs and INTOSAI GOVs that have been replaced, in accordance with this due process, by an endorsement version with the same number in accordance with a project proposal are withdrawn without further decision”.

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