PAS Recent achievements and new proposals

1
PASRecent achievements and new proposals
PERFORMANCE AUDIT SUBCOMITTEE

• Brasília, June 2009

2
Summary

• PAS achievements since October 2007
• draft documents
• PAS future work beyond 2010

3
PAS products

• Two drafts
• Performance Auditing Standards (exposure draft)
  prepared by the European Court of Auditors
  (Chair), Norway, Saudi Arabia, Sweden
• Sustainable Performance Auditing Function
  Guidance (work draft) prepared by Australia,
  Brazil (Chair), Netherlands, Norway, Sweden,
  United Kingdom

4
DraftsStrategy for disseminating performance
auditing

• Performance Auditing Standards
• Make PA more accessible to the SAI community by
  communicating the essence of performance
  auditing.
• Sustainable Performance Auditing Function
  Guidance
• Help SAIs that are considering undertaking their
  first performance audits or that have limited
  performance auditing experience
• Introduction to PA Function

5
Performance Auditing Standards

• Table of Contents
• 1. Introduction
• 2. Performance Auditing Standards
• 2.1. Definition
• 2.2 Audit objective
• 2.3. Programming of audit tasks
• 2.4. The audit process
• 2.4.1. Planning an audit task
• 2.4.2 Scope of the audit
• 2.4.3. Performing audit procedures
• 2.4.4. The nature of audit evidence
• 2.4.5. Reporting
• 2.4.6. Follow-up of audit results
• 2.5. Quality control

6
Level of the Performance Auditing Standards
within the ISSAI framework

• The Standards
• - represent the core of performance auditing
  (three Es)
• - are the key principles extracted from the
  existing ISSAI 3000 - Performance Auditing
  Guidelines
• - are aligned with the intended revision of ISSAI
  100-400
• - should, then, be classified as level 3 in the
  ISSAI framework

7
Sustainable Performance Auditing Function
Guidance

• Contents
• Introduction
• Chapter 2 presents the PA principles and
  describes internal and external benefits of the
  audit work
• Chapter 3 points out the main challenges of
  introducing PA
• Chapter 4 highlights the key aspects to be
  considered to start PA activities
• Chapter 5 provides an outline of the principal
  issues for sustainable PA function.
•  

8
Introduction- Purpose to facilitate the
process of introducing and maintaining
performance auditing in SAIs - Client SAI
leadership and management staff- Focus the
strategic needs and general implications of
introducing a sustainable performance auditing
function

• Chapter 2 The character and benefits of
  Performance Auditing
• PA principles
• PA features (compared to financial and
  compliance auditing)
• Importance to SAIs, government and society
• Internal and external benefits
•  

9
Chapter 3The challenges of introducing
Performance Auditing- Long term commitment of
SAI management is needed- The importance of
getting legislators involved- The importance of
reaching out to various stakeholders -
Organizational issues need to be addressed - Key
factors for success Chapter 4How to get
started - Building relationships with
stakeholders- Beginning on a small scale, with a
pilot project and focused themes - Determining
the resources needed- Raising awareness within
the SAI - Not setting up detailed systems and
procedures at this early stage
10
Chapter 5 Building capacity for sustainable PA
function- Operational Manager- Staff
Recruitment and Training- Performance Audit
Framework- Performance Audit Policy Manual-
Communications Strategy- Following up on
Implementation of Performance Audit
Recommendations
11
Beyond 2010

• Emphasis on implementation of existing documents
  and
• Promotion of performance auditing

12
Activities

• Review ISSAI 3000 and assess the need for
  editorial changes in light of the Standards
• Support and participate in the task of enhancing
  consistency in the ISSAI framework
• Arrange and participate in different seminars and
  workshops (e.g. risk analysis, quality control,
  efficiency studies and reporting)
• Establish a strategy for the website
• Share information
• Examples of best pratices reports linked to
  specific issues
• Training

13
Thank You.