1. PSC INTOSAI Professional Standards Committee The auditing function of Supreme Audit Institutions A systematic mapping of the auditing assignments of selected SAIs across the regions of INTOSAI

2. PSC INTOSAI Professional Standards Committee OBJECTIVES

3. PSC INTOSAI Professional Standards Committee Background Harmonization Project – to strengthen the consistency of the professional standards – provide general recommendations on auditing for all SAIs – draft due process for developing, revising and withdrawing ISSAIs and INTOSAI GOVs – the need to update the fundamental auditing principles

4. PSC INTOSAI Professional Standards Committee Objectives Gather information on audit assignments in the mandates of SAIs: – scope, subject, criteria – resolve of the audit – reporting to intended users. Develop distinctions between different kinds of assignments: – to provide a statement of assurance – other assignments Mapping the mandates of SAIs – to obtain an overview of the different legal mandates of SAIs in relation to the audit assignments – to define a “common language” for explaining and comparing the tasks of SAIs across their different national settings

5. PSC INTOSAI Professional Standards Committee Context The need for restructuring level three in the ISSAI Framework The initial assessment is a mapping of selected SAI mandates – requires a conceptual framework INTOSAI needs a coherent logical consistent framework of standards for SAIs

6. PSC INTOSAI Professional Standards Committee METHOD

7. PSC INTOSAI Professional Standards Committee Method Conceptual framework – Well defined concept in a glossary as basis for the mapping The survey – Collection of data with assistance from the regional representative – 39 selected SAIs Comparison – Categorizing similarities and differences

8. PSC INTOSAI Professional Standards Committee FINDINGS

9. PSC INTOSAI Professional Standards Committee The scope of the audit assignment The scope of the mandate is defined in different ways Detailed and less detailed audit assignment Conditions for the conduct of audits by the SAI – Fixed tasks – Discretionary tasks

10. PSC INTOSAI Professional Standards Committee The subject and audit criteria Each branch of audit has its own audit criteria: – Financial audit – Compliance audit – Performance audit General distinction with regard to the subject – conclusion concerning a subject matter – subject matter information Criteria in public sector audit: – process – outcome – report

11. PSC INTOSAI Professional Standards Committee The conclusions to be reached Depending on the scope of mandate which is defined in different ways Conclusions expressing assurance (reasonable and limited assurance) Other types of conclusions – an assessment – an investigate audit – a decision of discharge

12. PSC INTOSAI Professional Standards Committee The intended users of SAI reporting Executive informed by the result of the audit – during the process as contradiction – information of the cabinet Parliament – Request tasks reported to parliament – Assessments reported to parliament – Expressions of assurance on global level parliament Head of state

13. PSC INTOSAI Professional Standards Committee CONCLUSIONS AND RECOMMENDATIONS

14. PSC INTOSAI Professional Standards Committee Conclusions The legal mandates of SAIs are emphasizing audit assignments as an integrated part of the governance system in a context of accountability. The basic function of SAIs is – to provide audit or assurance services by comparing economic information with a framework for financial reporting – to produce knowledge derived from the conduct of audit investigations, which creates the basis for the implementation of corrective actions This is the central foundation for a future harmonization project of the Fundamental Auditing Principles.

15. PSC INTOSAI Professional Standards Committee Recommendations for the harmonization project The general function and powers of SAIs should be the starting point Maintain the three general branches of auditing Distinguish between different styles of conclusion used by SAIs : – express assurance – other styles The need to recognize the tasks of Court of Accounts, Auditor Generals as well as other SAIs in all INTOSAI regions Reporting to different intended users by combining different kinds of conclusions

16. PSC INTOSAI Professional Standards Committee Next step ! Which reflections and additional comments do this report raise?