1. IMPLEMENTATION OF ISSAI 4000
By Mrs. Raj Esther Thomas
Regularity Audit Manager
CAS 14th Meeting in New Delhi, India
20-21 February 2017

2. Innovation and Creativity Developing Competence Improving Credibility
STATEMENT OF INTENT
Making a difference in the performance of SAIs
OUR MISSION
AFROSAI-E is, through innovation, committed to cooperate with and support its member SAIs to enhance their institutional capacity to successfully fulfil their audit mandates, thereby making a difference to the lives of citizens
VALUE STATEMENT
Innovation and Creativity
Developing Competence
Enhancing Confidence
Improving Credibility

3. Overview Pilot Audit Development of Compliance Audit Methodology
Compliance Audit Manual (CAM)
– Exposure Draft

4. AFROSAI-E Pilot audit Workshop 5-9 September 2016
Pilots from Botswana, Eritrea, Kenya, Seychelles, Zambia and Zimbabwe
Facilitator from CAS and OAGN
First Draft of CAM shared with the pilots

5. Follow-up workshop 30 Jan to 3 Feb 2017 Country Support visits
AFROSAI-E Pilot audit
Subject matters: Procurement, Performance Information, Extractive Industries and IFAD Projects
Follow-up workshop 30 Jan to 3 Feb 2017
Country Support visits

6. AFROSAI-E Pilot audit Training workshop – Sept 2016
Introduction to ISSAI 4000, exposure draft
Compliance Audit – risk based approach
Sessions with presentation and practical group work
Feedback from participants on ISSAI 4000 and structure of the compliance audit manual’s first draft

7. AFROSAI-E Pilot audit Follow-up workshop – Jan-Feb 2017
Racap of Compliance Audit methodlogy
Presentations from the pilots
Feedback from particpants and group discussions
Individual feedback

8. Audit of Externally Funded Projects in Agriculture & Food Security
Cooperating Partner : IDI and IFAD
AFROSAI-E collaborating with IDI on this audit program
Malawi
Liberia
Rwanda
The Gambia
Sierra Leone
Tanzania
Zambia
Research done by IDI and AFROSAI-E revealed that countries in Africa are among the highest recipients of development aid in agriculture and food security.
IFAD is a specialized agency of the United Nations. Established to finance agricultural development projects primarily for food production in the developing countries.

9. Programme components 1. Agreement with SAI leadership
Roles & responsibilities
2. Design and Development of Guidance and Tools
3. Workshop for SAI Teams and development of plans
4. Pilot Audits and Support for finalising audit report
5. Independent assurance of audit quality 2017

10. SAI Commitments 1
Agreement with SAI leadership
Roles & responsibilities
Agreement made among all the stakeholders in the programme on the key deliverables of the programme as well as agree on the imprementation strategy 2
Design and Development of Guidance and courseware
Developed Financial audit and Compliance Audit Courseware as well as guides for project audit in accordance with ISSAIs
Participants trained in Compliance and Financial Audits as per ISSAIs. Focused on Direct Reporting CA as per ISSAI 4000
Training and Planning Workshop for SAI teams 3 4
Participating SAIs conduct audits as per standards and report on their audits
6 SAIs conducted the audits on IFAD Projects in both FA and CA
Onsite support provided to 3 SAIs
IFAD Suggestions for possible areas of focus 10

12. CAM Based on ISSAIs
ISSAI 100 Fundamental Principles of Public Sector Auditing
ISSAI 400 Fundamental Principles of Compliance Auditing
ISSAI 4000 Compliance Audit Standard

13. CAM Structure Chapter 1: CA in public sector context
Chapter 2: Key concepts of Compliance Audit
Chapter 3: General principles and requirements of compliance auditing
Chapter 4: Overall CA Planning
Chapter 5: Compliance Audit Process
– step by step approach
Appendix: Guidance on report writing
and sampling
Working paper templates

14. Compliance Audit Process
Initial considerations
Planning the Audit
Performing the audit
and gathering evidence
Evaluating evidence and forming conclusions
Reporting

16. Guidance Regularity vs Propriety Reasonable vs Limited Assurance
Direct Reporting vs Attestation Engagement
Conclusion vs Opinion
Standalone vs Combined Audit
ISSAI 1250 vs ISSAI 4000

17. Levels of assurance and engagement types
Direct reporting
Attestation
Assurance level
Reasonable assurance
Conclusion
Opinion
Limited assurance

18. Questions Is compliance audit mentioned in your SAIs mandate?
Does your SAI have discretion to select subject matter?
What challenges do you think you will encounter in applying this methodlogy

19. Response from SAIs 14 SAIs responded to these questions
6-7 combined approach of these
Challenges:
Resistence to change
Lack of capacity and skills
Peformance vs compliance audit

20. Future development
Combined audit approach for compliance and financial audits
AFROSAI-E needs to address this in the near future

22. www.afrosai-e.org.za CONTACT AFROSAI-E esther@afrosai-e.org.za
AFROSAI-E
@AFROSAIE

23. THANK YOU