RTI, MUMBAI / CH 71 SUPERVISION, REVIEW AND QUALITY CONTROL DAY 7 SESSION NO.1 (THEORY ) BASED ON CHAPTER 7 PERFORMANCE AUDITING GUIDELINES

RTI, MUMBAI / CH 72 Learning Objectives In the last 6 days we have discussed about the salient features of the Performance Auditing, Auditing standards and mandate, Strategic planning and selection of subjects, Implementation of Performance audit plan, Evidence and documentation. We have also discussed about the Reporting process in Performance Auditing. Today we will be discussing about Supervision, review and quality control in Performance Auditing in two theoretical sessions.

RTI, MUMBAI / CH 73 Cont… In the first theoretical session we will discuss :  Structure of supervision  Responsibility of the supervisory officer & the audit officer  Super vision by audit officer  Progress Reporting  Supervision and control during reporting process

RTI, MUMBAI / CH 74 Cont… In the second theoretical session we will discuss : Review Quality Control Quality Control procedures Quality Control System Key quality control and assurance questions Quality Assurance for supervision and review

RTI, MUMBAI / CH 75 Structure of supervision Supervision is exercised by senior members of audit staff and SAI management at various levels;  By the group supervisory officer and Accountant General, during planning of the individual performance audits;  By the audit officer, during the course of field audit, further supervised by group supervisory officer;

RTI, MUMBAI / CH 76 Cont…  By the Accountant General during review of periodic reports, monitoring and interim appraisals at the close of the audit of a particular phase or unit; and  By the SAI top management during approval of the strategic and operational plans, implementation guidelines, mid-term/interim appraisal or meeting at Intervals determined with reference to the complexity and time period of performance audits.

RTI, MUMBAI / CH 77 Cont…  The Audit team is primarily responsible for data collection. The Audit Officer and the Group Supervisory officer are responsible for data analysis. The Accountant General is expected to apply his judgement to the audit findings, conclusions and recommendations, while the most important role of the SAI top management is to impart vision to the entire performance audit process.

RTI, MUMBAI / CH 78 Responsibility of the supervisory officer & the audit officer  Supervisory Officer should ensure:  that the work plan is executed with integrity and care in relation to the auditing standards;  that the implementation of audit is carried out in accordance with the operational audit plan and all significant deviations, where necessary, are made only with prior authorisation of the Accountant General or under intimation to him/her;  adherence to the best practices contained in these guidelines;

RTI, MUMBAI / CH 79 Cont…  Documentation – both the performance audit documentation (working paper) as well as the performance audit process documentation, which demonstrates various actions and options considered and decided in the course of implementation; and  that confidentiality and integrity of information obtained from the entity, persons and other sources are maintained,  the factual basis of information, descriptions, analyses and recommendations are accurate  they are fair, balanced and well founded,  they are correctly communicated to the entity and the audit team is provided oral and written guidance in conduct of the audit.

RTI, MUMBAI / CH 710 Supervision by Audit Officer Auditor Officer should ensure :  that the audit work is carried out in harmony with the audit plan, more particularly, in tune with the audit objectives;  identification of important issues in course of audit;  ensuring that no significant matters in the context of the audit objectives and evidence required, therefore, remain unresolved;

RTI, MUMBAI / CH 711 Cont…  evidence collected fulfil the criteria prescribed in the Auditing Standards;  the work performed and the results including the process of audit are separately documented, first in support of audit findings, conclusions and recommendations and the second in support of due diligence exercised by the audit team; and above all  ensuring that the objectives of audit are fully met.

RTI, MUMBAI / CH 712 Progress Reporting  The audit officer and group supervisory officer will be responsible for reporting the progress of audit to the next level supervisory officer; at intervals as may be provided in the detailed audit implementation plan or as demanded under the orders of Accountants General.

RTI, MUMBAI / CH 713 Cont…  On completion of the audit of each unit or stage in the performance audits. Accountants General may send ‘work-in- progress’ to SAI top management every quarter or as determined by SAI top management in the PERT format, including explanatory note that may be required in the context of the progress reports.

RTI, MUMBAI / CH 714 Supervision and Control during Reporting Process  Group supervisory officers and Accountants General will be required to closely supervise the preparation of various reports in course of performance audit  The draft performance audit report will be prepared under direct personal supervision of the Accountant General.

RTI, MUMBAI / CH 715 Session Summary In this session we discussed :  Structure of supervision  Responsibility of the supervisory officer & the audit officer  Super vision by audit officer  Progress Reporting  Supervision and control during reporting process