1 Co-operation in Implementing Internal and External Audit in the Republic of Moldova Gh. Cojocari Court of Accounts (CoA) Chisinau, June 2007

2 Present challenges with the PFIC system A well-defined legal framework is missing Resources for reform program are insufficient Staff is not prepared for reform process Understanding of the need for reform from inspection to audit is poor An integrated financial management information system does not exist

3 Role of CoA in the PIFC system To contribute to the development of an accountability system in public administration To close the accountability circle in the public sector To provide oversight over the implementation of PIFC system To co-operate and dialogue with the MoF to achieve an efficient management system of state budget resources To prioritize, plan and carry out audits so that they have an impact on the successful implementation of the agreements between the Government and the EU.

4 Co-operation between CHU and CoA CHU and CoA have joint interests. The co-operation is built on: Mutual willingness and commitment Confidence Consultation Communication

5 Areas of Co-operation Development of the normative and methodological framework Train trainers Joint training of staff Establishment of an integrated information system Share experience and information Develop control programs

6 Benefits of Co-operation Mutual support for reform of internal and external audit A reduced audit burden A better informed dialogue on the risks facing government institutions leading to more effective focusing of audit effort and consequently to more useful advice to management Better coordination of internal and external audit activity through the planning process A better understanding of the results of IA and EA work which influences each others future work plans and programs The opportunity for each party to draw on a wider and more flexible skills base Provision of a better quality of public service

7 Structure of Audit CoA Internal Auditors Functional process at the level of public institutions  The entire system of internal control, internal audit, and external audit of the public sector is efficient and effective.  Good audit - higher responsibility – more efficient management of public finances.

8 Long-term Vision All public internal control systems are so effective that the external auditor can increasingly rely on them

Questions to Participants 1. To what extent have SAIs in other countries been able to place reliance on the work of internal auditors? 2. Should SAIs assess the quality of the work of internal auditors? If so what approach should they take in conducting this assessment. 9