Principles for best audit arrangements for international institutions

1
Principles for best audit arrangements for
international institutions
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)
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Contents
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Context
• Definitions
• Background
• The principles
• Material
• Summary

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INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Context
• Supreme Audit Institutions have a fundamental
  interest in international institutions living up
  to principles of good governance, accountability
  and transparency.
• National financial rules and regulations will
  also govern grants to international institutions.

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Definitions
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• International institution
• Two or more states/government agencies are
  members
• and
• A joint financial interest is overseen by a
  governing body
• INTOSAI (International Organization of Supreme
  Audit Institutions)
• Professional organisation of Supreme Audit
  Institutions (SAIs)

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History
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• INTOSAIs XVII Congress in Seoul 2001
• View of INTOSAI
• International institutions - outdated audit
  arrangements
• Little focus on prudent, effective and
  transparent spending
• Workgroup 12 countries, all world regions
• Principles approved INTOSAIs XVIII Congress in
  Budapest 2004

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Well-organised independent audit systems
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)
Transparent control

• Economy
• Efficiency
• Effectiveness

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THE PRINCIPLES
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)
4 Adequate Resources
5 Right and obligation to report
3 Sufficient Authority
1 Audit by Supreme Audit Institutions

• Best audit
• arrangements

and
6 Professional and ethical Standards
2 Fully independent
7 Appointed open, fair and transparent
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Principle 1. Audit by Supreme Audit Institutions
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Public money should be subject to audit by
  supreme audit institutions, to promote
• better governance,
• transparency and
• accountability

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Principle 1. (cont.)Audit by Supreme Audit
Institutions
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• The added value integrated financial and
  performance audit.
• Statutory independence
• Information to the public

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Principle 2.The External auditor is fully
independent
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Free to determine scope, methods and resources
• Be and be perceived as independent
• From management
• From individual states/members
• Solely responsible
• Requests from Governing body

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Principle 3. Sufficient authority
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Sufficient mandate
• Regularity audit
• Performance audit
• Special audits
• Report to governing body on restrictions on the
  mandate
• Unrestricted access to any information and staff
  of the institution

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Principle 4. Adequate resources
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Responsibility of international institution
• Adequate formal budget
• Report to governing body on restrictions on the
  budget
• Avoid discrimination between SAIs through the
  budget

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Principle 5. Right and obligation to report
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Issue reports to governing body on i.a.
• Audit of the financial statements
• Implementation of previous recommendations
• Relevant auditing standards
• Comments from management
• Any other reports
• Present the reports to governing body
• Audit reports should be publicly available

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Principle 6. Professional and ethical standards
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Audit conducted in conformity with
• INTOSAI Auditing Standards and Auditing standards
  of the International
• Federation of Accountants (IFAC)
• INTOSAI Code of Ethics

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Principle 7. Appointed in an open, fair and
transparent manner
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Appointed by governing body
• Process formalised in financial rules
• Length
• Equal opportunity
• Quality auditing
• Clear/open criteria
• Participation of all member states
• Encourage SAIs from developing countries

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Available material
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Principles for best audit arrangements
• Set of best practice rules and regulations
  concerning audit arrangements
• www.intosai.org

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THE PRINCIPLES
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)
4 Adequate Resources
5 Right and obligation to report
3 Sufficient Authority
1 Audit by Supreme Audit Institutions

• Best audit
• arrangements

and
6 Professional and ethical Standards
2 Fully independent
7 Appointed open, fair and transparent
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Questions?
INTOSAI Task-Force on the Audit of International
Institutions (TFAII)

• Thank you for your attention