Strategic Objectives for Goal 1 at CAS Annual Meeting

1. CAS Annual Meeting New Delhi 20th February 2017

2. Strategic Objectives for Goal 1 Under its mandate, which is directly derived from the Strategic Plan, the PSC will pursue five broad activity streams: 5. 3. 4. 2. 1. A strong organizational structure to support standard-setting Strategic guidance and overall coordination of standard-setting Consolidate the Standards Framework Support capacity development initiatives Monitor the implementation and adoption of the standards PSC mandate 2017 - 2019

3. Establishment of the Forum for Intosai Professional Pronouncements (FIPP) New Due Process Revised Framework of Professional Pronouncements (IFPP) Strategic Development Plan Main changes in the standard setting process

4. Activity stream 1 Strong organizational structure to support standard-setting • Supporting the work of the PSC sub-committees • Feasibility study – common technical support function • Expanded consultation with external stakeholders • Enhance Regions’ role in PSC

5. Forum for Intosai Professional Pronouncements - FIPP Overview (1) • Started work, on a preliminary basis, in December 2015 • As a result of INCOSAI, now a permanent body • 15 members appointed by Goal Chairs (GB endorsement) • “Independent”: • Works in “public interest on behalf of the full INTOSAI membership” (FIPP Governance paper, section 2) • … with members receiving the material support of their sponsoring bodies (SAIs, IDI, Regions, …)

6. Forum for Intosai Professional Pronouncements - FIPP Overview (2) PSC Steering Committee is its governance body Main task: clear and consistent professional standards (FIPP ToR, section 1) Proposes priorities for the Strategic Development Plan – the “single entry into the ISSAI framework” (FIPP ToR, introduction)

7. Forum for Intosai Professional Pronouncements - FIPP FIPP members – appointment criteria On basis of expertise in: - Financial, performance, compliance audit- Other specialist streams (IT audit, environmental audit, …) - Development of audit methodology - Audit management responsibilities - National/ international standard setting - International cooperation - Capacity development - Public sector education and training - Competency frameworks/ certification processes

8. Forum for Intosai Professional Pronouncements - FIPP FIPP members – rotation policy • Rotation of 1/3 of members each year (starting end-2017 – special arrangements for first appointees) • Annual call for nominations, if required • Calls for nominations can target particular experience, etc. • Members may be reappointed to serve a maximum of three three-year terms

9. Forum for Intosai Professional Pronouncements - FIPP FIPP governance (1) – PSC-SC (incl. Goal Chairs) approval of Strategic Development Plan (SDP) any issues related to the application of procedures of due process budget for INTOSAI standard setting activities approval of changes in FIPP´s terms of reference (“ToR”)

10. Forum for Intosai Professional Pronouncements - FIPP FIPP governance (2) – individual Goal Chairs • FIPP membership – appointment/rotation of members • Alignment of individual projects with the objectives of the Strategic Plan • Monitoring projects led by their sub-committees and working groups • PSC chair: sits as an observer on the FIPP

11. “Due Process” for INTOSAI’s framework of professional pronouncements In reality here is also a “Stage 0” The process contains in total four main stages

12. START FIPP Proposes how the planning process will be organised STAGE 0 PSC-SC inlcu. Goal Chairs Approve FIPP proposal for the organization of the planning process “Due Process” for INTOSAI’s framework of professional pronouncements Subcommittees, Working Groups or other interested parties may provide suggestions INTOSAI community & external stakeholders Receives suggestions for the SDP Goal Chairs Including public consultation at least every three years Analyses suggestions for develop, revise or withdraw pronouncements Proposes priorities for the SDP FIPP The Strategic Development Plan (SDP) Consults with all affected parties Finalises and approves the proposed SDP PSC-SC inlcu. Goal Chairs Ascertains that all relevant needs are addressed (vis-à-vis the SDP) FIPP may propose amendments / updates to an existing SDP GB Endorses the SDP

13. Makes initial assessment STAGE 1  “Due Process” for INTOSAI’s framework of professional pronouncements WG Makes project proposal Allocates Resources, considers timelines and SP alignments PSC-SC (including CBC & KSC Chairs) provide Direction and Guidance Responsible Goal Chair Sends project proposal to FIPP for approval FIPP Approves project proposal

14. Approved project proposal STAGE 2 Applies quality process to developing draft Chairs of PSC/CBC/KSC & GC provide direction and guidance WG “Due Process” for INTOSAI’s framework of professional pronouncements Sends the draft pronouncement to FIPP Approves exposure draft FIPP Posts exposure draft on ISSAI website WG Stakeholders are notified and can make comments Collects comments on exposure draft Exposure draft & comments to "Stage 3"

15. Exposure draft & comments from "stage 2" STAGE 3 Posts comments on ISSAI webpage “Due Process” for INTOSAI’s framework of professional pronouncements WG Analyses comments & finalized endorsement version FIPP Approves endorsement version Posts translated version on ISSAI website WG Approved endorsement version to "Stage 4"

16. Approved endorsement version from "Stage 3" WG Sends approved endorsement version to GC responsible for the committee STAGE 4 “Due Process” for INTOSAI’s framework of professional pronouncements PSC-SC inlcu. Goal Chairs Gives assurance to GB that "Due Process" has been followed GB Refers to INCOSAI for final endorsement WG Publishes publication on ISSAI website Endorsement by INCOSAI Works out executive summary and submits to the INTOSAI Gen. Sec. WG END

17. Intosai Framework for Professional Pronouncements - IFPP Key features (1) • Includes other documents than ISSAIs (standards) – also principles (INTOSAI-P) and guidance (GUID) • ISSAI brand is retained • Only documents that set out requirements to support ISSAI 100 and consistent to ISSAI 100 are designated as ISSAIs

18. Intosai Framework for Professional Pronouncements - IFPP Key features (2) • Clarifies what SAIs need to claim ISSAI compliance • Provides for the development of an INTOSAI competency framework for public sector auditing and other pronouncements that may facilitate ISSAI implementation • INTOSAI-GOVs is not retained separately but merged with the category of guidelines on specific subjects into the new category GUIDs

19. INTOSAI FRAMEWORK OF PROFESSIONAL PRONOUNCEMENTS INTOSAI Principles (INTOSAI-P) INTOSAIPrinciples INTOSAI founding principles INTOSAI core principles International Standards of Supreme Audit Organisations (ISSAIs) Competency Standards(COMP) INTOSAIStandards Fundamental principles of public sector auditing ❸ (Reserved for future development based on ISSAI 100) SAI organisational requirements ❹ Financial audit: Performance audit: Compliance audit: Other engagements: (Possibly) Competency principles C A principles FA principles PA principles (Reserved for future development based on ISSAI 100) FA standards PA standards CA standards … and competency standards Competency Guidance (COMP) Guidance (GUID) INTOSAIGuidance (Reserved for future development based on ISSAI 100) SAI organisational guidance Supplementary competency guidance Supplementary compliance audit guidance (Reserved for future development based on ISSAI 100) Supplementary performance audit guidance Supplementary financial audit guidance Subject matter specific guidance Other Guidance

20. Strategic Development Plan General Information • New planning instrument for development of content of the framework • Single entry point into the IFPP • Broad consultation with the different Intosai bodies and external stakeholders • To be annually revised

21. Strategic Development Plan 2017 - 2019 How it was developed • PSC-SC agreed that the Goal Chair will consult their SC/WG about possible projects to develop (May/2016) • PSC, CBC and KSC Chairs consult their respective SC/WG (August/2016) • SC/WG send their inputs to the Chairs (August/2016) • FIPP prepares the proposal for the SDP (October/2016) • PSC-SC approves the proposal by written procedure (November/2016) • Governing Board endorses (December/2016)

22. Strategic Development Plan 2017 - 2019 Content • Priority 1 – Implement the revised IFPP after 2016 • - Relabelling and renumbering without further amendments • - Withdrawal of any outdated material by 2019 • - References to UN Resolutions 66/209 and 69/228 in ISSAI 10 • - updating ISSAIs on financial auditing • - developing websites • Priority 2 – Guidance by 2019 to support ISSAI implementation (10 projects) • Priority 3 – Strengthening INTOSAI Professional Pronouncements beyond 2019 (projects)

23. Strategic Development Plan 2017 - 2019 CAS potential involvement • Priority 1 – any withdrawal (any outdated material)? • Priority 2: - Provide guidance on compliance auditing • - Using ISSAIs in accordance with the SAI´s mandate and carrying out combined audits • - Consolidated and improved guidance on understanding internal control in an audit • - Consolidatedandimprovedguidanceonreliance on the work of • internalauditors • - Consolidatingandaligningguidance for auditsofPrivatizationwith ISSAI 100 (desirable)

24. Strategic Development Plan 2017 - 2019 CAS potential involvement • Priority 2: - Consolidatingandaligningtheauditofpublicdebtwith ISSAI • 100 (desirable) • - Consolidatingandaligning the audit of disaster relatedaidwithISSAI100 (desirable) • Priority 3: Examples: • - Global INTOSAI messageson SDGs in the context of the INTOSAI framework of professional pronouncementsand possible needs for guidance. • - Competencypronouncements(The project is intended to address • theneed for professional pronouncementsfor auditor competence, as identified in • thenewlyrevisedIFPP) • - Providing a clear set of INTOSAI Core Principles

25. Strategic Development Plan 2017 - 2019 Revision of the SDP

26. PSC Secretariat contacts psc@tcu.gov.br ECA-PSC@eca.europa.eu Thank you !