1. Evaluation of Internal Control Systems – the Irish Experience
Andrew Harkness
Office of the Comptroller and Auditor General, Ireland

2. Public Audit Process Financial Accuracy – what was spent?
Regularity - was money spent in accordance with Parliaments intentions and authority?
Annual audit attestation culminating in Opinion
Propriety and value for money – how well was money spent?
Discretionary reports to Parliament

3. Review of Audit Process
Focus historically has been more on substantive testing.
Recently heavier emphasis on audit efficiency
Nowadays increased assurance from testing control.
Resulting in a revised financial audit process

4. Revised Financial Audit Process
Risk Based Approach.
Understand control systems to identify risks of material error in the accounts.
Test Controls
Address specific risks of error
Audit efficiency decision i.e. reduce substantive testing
Obtain control assurance.

5. Other Control Issues
Propriety Issues (e.g. tendering for contracts, late payments, compliance with tax rules for State bodies)
Examine relevant controls as part of financial audit process.
Focus continues to be on reporting these issues to Parliament.

6. Recent Developments - Corporate Governance
Management state their responsibility for controls
Management review annually the effectiveness of the system of financial control.
Management publish a statement describing this process in particular the use of
Audit committees
Internal audit
Audit provides ‘negative assurance’ on Management’s Statement.