1 / 33

INTOSAI Auditing Standards

INTOSAI Auditing Standards. DAY 2 SESSION NO.1 (THEORY). Learning Objectives. In the previous session we discussed Mandate for performance audit Definition of performance auditing, 3 Es concept, Equity and Ethics Specific nature of Performance Audit

Download Presentation

INTOSAI Auditing Standards

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. INTOSAI Auditing Standards • DAY 2 SESSION NO.1 (THEORY) RTI, MUMBAI

  2. Learning Objectives • In the previous session we discussed • Mandate for performance audit • Definition of performance auditing, 3 Es concept, Equity and Ethics • Specific nature of Performance Audit • Performance Audit and Programme evaluation • Common types of Programme Evaluation • Performance Audit Process • Expected outcomes of performance auditing. RTI, MUMBAI

  3. Contd.. • Objectives of Performance Auditing • Difference between Performance auditing and Financial auditing. • What performance auditing requires from the auditors. • Analyse the performance auditing cycle. • Importance of documentation of decisions at various stages of the performance audits. •  Recognize why the impact of the performance auditing needs to be evaluated. RTI, MUMBAI

  4. Learning Objectives • In this session we will discuss : • INTOSAI Auditing Standards • CAG’s DPC Act • CAG`s Auditing Standards RTI, MUMBAI

  5. INTOSAI Auditing Standards • INTOSAI-International Organization of Supreme Audit Institutions • Each member country has its own standards • It is not mandatory • But it is the BEST PRACTICES consensus amounting the member countries. • It tends to evolve a current trend issues and concerns in auditing methodology and practices. RTI, MUMBAI

  6. History • A committee was set up in May 1984 • Members from Austria, Argentina, Australia, Brazil, Costa Rica, Japan, Philippines, Saudi Arabia, Sweden, U.K. and U.S. constituted the Committee. • Although the word Standards has been used it serves as a guideline as individual SAIs have their own Standards. RTI, MUMBAI

  7. Basic Postulates • General Frame work deduced from Lima and Tokyo declarations. • INTOSAI’s own reports and declarations • United Nations Expert Group Meeting in Public Accounting and Auditing in Developing countries • Formed the basic vision towards this endeavour RTI, MUMBAI

  8. contd…. • They are the basic assumptions, consistent premises, logical principles, and requirements which help the auditors to form the audit opinion • SAIs are required to adopt all material standards where necessary subject to local differences. • Some standard may not fit in with the SAI’s own standard RTI, MUMBAI

  9. Contd… • It is the endeavour of the SAI • To ensure public accountability • Adequate accounting standards • Adequate internal control of the auditees • Adequate safe guards for easy access of the records for audit • Adequate safeguards to avoid conflict RTI, MUMBAI

  10. Audit activities • SAIs are set under the Act of the supreme legislature of a particular nation • They deal with the duties, functions, conditions of service of the SAI and its related offices • There exists a relation between the jurisdictional activities and the other activities. RTI, MUMBAI

  11. Scope of Govt. Audit • It includes regularity and performance audit • Regularity includes, financial accountability • This involves examination and evaluation of financial records • Attestation of financial administration of the auditee • Test check of statutes and regulations RTI, MUMBAI

  12. Contd… • Ascertainment of internal control • Audit of propriety and probity • Audit of economy, efficiency,effectiveness • Reporting on any other matters considered necessary • Checking of financial statements of the auditees for the accuracy RTI, MUMBAI

  13. Due care • SAIs are equipped to handle the standards of the various audits. • They should be handled in a professional manner • The audit should be objective • The concern of audit should be to apply the auditing standard RTI, MUMBAI

  14. General standards • This deals with the qualification and fitness of the auditor to handle audit in a professional manner • Independence is another standard • The auditor and Sai must be independent • The Sai and auditor should exercise due care to in effectively using the Auditing standard RTI, MUMBAI

  15. Contd... • The objective is to conduct an audit objectively and to collect sufficient, adequate and reliable audit evidence to substantiate the audit findings. • Manuals and other writings to support the audit work • Auditor too have sufficient skill to handle the audit subject however difficult it may be. RTI, MUMBAI

  16. Independence • The auditor should do his work independently without fear or favour. • Though independent SAI has to work in close liaison with the Legislature. • SAI helps the Legislature in dealing with its reports • SAI also helps the legislature in preparation of the annual financial statements. RTI, MUMBAI

  17. Contd… • SAI keeps away from political influence • SAI to observe the dictates of legislation • The legislation should not direct the SAI to plan and conduct the audit as per certain directives. • SAI should have independence in deciding the manner and method of conducting the audits. RTI, MUMBAI

  18. Contd… • All the receipts and expenditure of the Govt. would be subject to SAI audit. • But in certain cases other bodies and corporations not having any direct link with the Govt.some times request the Sai to conduct audit • In such cases also it is to be seen that the Auditing standards are kept up RTI, MUMBAI

  19. Responsibility of the Legislature • It should provide all necessary help to the SAI in terms of resources and manpower to which the SAI is accountable. • There should not be any direction from the executive in regard to the performance of the audit mandate • SAI to have uninterrupted access to the records for audit purposes. RTI, MUMBAI

  20. Contd… • SAI need not be managers to an entity’s execution • Sai may co-operate with bodies having expertise in the matter of audit without affecting the independence of audit. • Competence: • Audit should have competence to handle modern skills and technique of audit. RTI, MUMBAI

  21. Competence contd… • The SAIs competence in forming audit opinion, recommendations and conclusions should possess the standard expected of it. • The opinion should be objective and not biased • The SAI should have coherent view amongst the functionaries. RTI, MUMBAI

  22. Contd… • In order to maintain the quality of opinion, the SAI should equip itself with the modern techniques, innovations and research • The members should be subjected to periodical sharpening of skills through training, manuals and other publications • Audit planning, structuring of the audits etc should have the necessary logic and standard RTI, MUMBAI

  23. Qualification • General standards stipulate that the auditor should have the necessary qualification • Where found deficient, training should be imparted • SAI should have professional development programmes • The SAI personnel have adequate knowledge about the Govt. their system and position RTI, MUMBAI

  24. Contd… • SAI should continuously pursue the policy of updating the skills of the personnel through circulars, booklets, manuals, regulations etc. • It should also derive external expertise to enrich its resources There should be good liaison between the audit and audittee RTI, MUMBAI

  25. Contd… • SAI should: • Confirm that integral quality assurance processes have operated satisfactorily • The quality of the AR should be ensured • Avoid repetition of weakness • SAI to approve the system of accounting and audit RTI, MUMBAI

  26. Field Standard • The auditor should plan the audit for a high quality audit • The work of audit staff should be supervised • Audit should evaluate the internal control • Regularity and financial audits should bring irregularities, illegal acts RTI, MUMBAI

  27. Collection of evidence • Competent, relevant, and reasonable evidence should be obtained to support the audit’s findings • In analysing the financial statement the audit should ensure that the financial statements do depict a true and fair view • It also discloses the various areas where the accounts do not disclose the correct accounting RTI, MUMBAI

  28. Steps for audit • Plan • Know the entity and projects • Define objective and scope • Define audit approach • Prepare the budget and schedule fr the audit • Identify the staff requirements • Discuss the above with the auditee RTI, MUMBAI

  29. Supervision and review • Audit should be supervised to ensure achievement of audit objective • Supervision for method and substance • Ensure that audit is conducted as per the auditing standard • Ensure that the working papers are filed • They contain evidence to support the opinion RTI, MUMBAI

  30. Reliability of internal control • Ensure that internal control exists • Ensure that the laws and regulations are properly seen • Ensure that frauds are not taking place • Audit evidence: • All conclusions should be supported by audit evidence RTI, MUMBAI

  31. Contd… • Ensure that the evidences reliable, complete and sufficient • Ensure that they support the auditing standards • Helps planning the audit • Help the professional development RTI, MUMBAI

  32. Reporting standard • This relates to both regularity audit and certification audit • Findings are to set out in proper form • The opinion should be preceded by a suitable title • The report should be dated and signed • It should contain objective and scope RTI, MUMBAI

  33. Contd… • The report should be complete • It should address the auditee • Subject matter should be identified • Legal base should be included in the report • It should conform to the standards • It should be issued within the time frame • Opinion should be expressed in the standard format RTI, MUMBAI

More Related