1. MODULE 8: GOVERNANCE AUDIT EVIDENCE AND REVIEW
GOVERNANCE AUDITOR ACCREDITATION COURSE

2. Meaning of Governance Audit Evidence
Governance Audit Evidence is “all the information used by the governance auditor in arriving at the conclusions on which the governance audit opinion is based.”

3. General Guidelines on Governance Audit Evidence
The governance audit will be based on the governance audit self-assessment report submitted by the organisation.
The appropriateness of the governance audit evidence is determined by its quality and relates to:
Relevance,
Reliability, and
Consistency.
Role of in-house CS in Governance Audit
Professional judgment, independence of judgment, accuracy of information and facts
Professional competence and due care, objectivity and integrity, disclosure and non-disclosure of information
The role of ICPSK in Governance Audit

4. Types of Governance Audit Evidence
Physical examination
Confirmations
Documentation
Analytical Procedures
Inquiries of the Client
Re-performance
Observation

5. Limitations in gathering Governance Audit Evidence
There are a number of bottlenecks that may cause limitations in gathering governance Audit evidence.
(Refer to Governance Audit manual for list of limitations.)

6. Types of Governance Auditing Tests
The different types of governance audit tests and procedures used to obtain audit evidence include:
Risk assessment procedures
Tests of controls
Substantive procedures
Analytical Procedures
Tests of Details of Governance Related Transactions

7. Using the work of an Expert
It is the prerogative of the governance auditor to determine whether to use the work of an expert, and if so, to determine whether that work is adequate for his purposes.
The auditor should:
Determine Nature, Timing and Extent of Governance Audit Procedures;
Confirm Competence, Capabilities and Objectivity of the Expert ;
Obtaining an Understanding of the Field of Expertise of the Expert

8. Using the work of an Expert(Ctd…)
The governance auditor should agree with the expert in writing on the following matters:
The nature, scope and objectives of the expert’s work;
Their respective roles and responsibilities;
The nature, timing and extent of communication between them, including the form of any report to be provided by the expert; and 
The need for the expert to observe confidentiality requirements.

9. Evaluating Adequacy of the work of the Expert
The governance auditor will evaluate the adequacy of the expert’s work for governance audit purposes.
If the governance auditor determines that the work of the expert is not adequate for governance audit purposes, the governance auditor will:
Agree with the expert on the nature and extent of further work to be performed by the expert; or
Perform additional governance audit procedures appropriate to the circumstances.

10. Reference to the work of the Expert in the Governance Audit Report
The governance auditor will not refer to the work of an expert in the governance audit report that has an unmodified opinion unless required by law or regulation to do so.
If the governance auditor makes reference to the work of an expert in the governance audit report because such reference enhances the understanding of a modification to the governance audit opinion, the governance auditor shall indicate in the governance audit report that such reference does not reduce the governance auditor’s responsibility over the governance audit opinion.

11. Methods of gathering Governance Audit Evidence
Inspection of Records or Documents
Observation
Inquiry
Confirmation
Re-performance
Governance Audit Survey

12. Governance Audit Procedures for obtaining Evidence
Audit evidence is obtained to enable the governance auditor draw reasonable conclusions on which to base the governance audit opinion. The following procedures can be used to obtain evidence:
Risk assessment procedures
Tests of controls
Substantive procedures

13. Governance Audit Sampling
The governance audit sampling approaches shall be guided by the materiality of the governance issue being examined; experience, competence and skills of the governance auditor; and the source and nature of the evidence available.

14. THE END