1. ECA Quality Control Arrangements
Bogna Kuczynska, Principal Manager
May 2019

2. The ECA our organisation and products

3. Organisation of ECA: five Audit Chambers
Presidency Corporate strategy, reporting, planning and communication Cooperation with other SAIs Inter-institutional relations
Secretariat- General Human resources, finance and general services Information, workplace and innovation Translation and language services
28 Members
28 Members
Legal matters
Audit Quality Control Committee (AQCC)
Internal audit
Chamber I
Sustainable use of natural resources
Chamber II
Investment for cohesion, growth and inclusion
Chamber III
External action, security and justice
Chamber IV
Regulation of markets and competitive economy
Chamber V
Financing and administering the Union
Annual Report
Administrative Committee

4. Selected audits (special reports) Statement of assurance (SoA)
ECA: Types of audit
Selected audits (special reports)
Financial audit
Compliance audit
Performance audit
Reliability of the annual consolidated accounts of the European Union
Reliability of transactions including the annual consolidated accounts of the European Union
Soundness of financial management of European Union spending
Statement of assurance (SoA)
(annual reports)
Regularity of transactions including the annual consolidated accounts of the European Union

5. Other audit products
Specific annual reports on EU agencies and bodies.
Opinions on new or revised rules and regulations with financial impact done at request of another EU institution
Review products:
Landscape reviews analysing selected areas covering one or more EU policies
Briefing papers: address more focused topics, and are therefore narrower in scope, shorter in length and quicker in execution
Rapid case reviews: present and establish facts surrounding very focused specific issues or problems

6. ECA audit quality framework

7. We all work towards ensuring quality
Auditor
Due skill and care
Evidence
Documentation
Head of Task & Principal manger
Direction
Supervision
Review
Chamber Director
quality control system in place and operating effectively
EQCR reviews on behalf of the Chamber
Reporting member
Examines and sends for approval planning documents and draft reports
Chamber
Approves planning documents and reports
Quality control review
Audit Quality Control Committee
Chamber V
Audit support
Manuals, guidance
Directorate for Audit Quality Control
Chamber V Directorate

8. The ECA’s audit quality management framework
Applies to:
Performance, Compliance and Financial audits,
Opinions,
Review products
Different types of measures
Manuals & Guidelines
Quality measures
Quality control
Engagement quality control review (EQCR)
Supervision and review
Quality assurance

9. Quality measures in life of a SoA audit
Regularity of the underlying transactions & reliability of accounts
Endorsed in vertical CH, adopted in CHV
Audit preparation
Audit Plan
Examination
Clearing letters
Reporting
Supervision & review by line management, including the Reporting member
EQCR
EQCR reviewer -> Director
Review of APs & findings
CHV coordinator
Review by member for AR
CHV -> Member for AR
Endorsed in vertical CH, adopted in CHV
Reporting
Draft report
Adversarial procedure
Final report
Publication
Supervision & review
Chamber EQCR
EQCR reviewer -> Director
CHV review
CHV -> Member for AR
CHV EQCR
CHV -> Member for AR
+ Review by DQC
Final report
Quality assurance

10. Quality measures in life of a performance audit
Performance audit, opinion, review product
Audit preparation
Audit Plan
Examination
Clearing letters
Reporting
Supervision & review by line management, including the Reporting member
EQCR
EQCR reviewer -> Director
Review by AQCC member
DQC -> AQCC member
Reporting
Draft Report
Adversarial procedure
Final Report
Publication
Supervision & review
Chamber EQCR - substance
EQCR reviewer -> Director
Review by AQCC member
DQC -> AQCC member
DQC EQCR – presentation
DQC -> AQCC member
Final report
Quality assurance

11. Supervision and review
Responsibility of line management
Supervision
Review
Monitoring task progress
Capabilities and competencies of audit team
Resolving significant matters
Work in line with manuals, standards and laws
Evidence based and documented conclusions
Achievement of audit objectives
Responsibilities - set out in the planning document (APM)
Documentation.

12. EQCR – Engagement quality control review
What? – Planning documents, Audited transactions,
Draft reports
Who?
Competent staff outside audit team
When? – Before approval by top management (Chamber)
How?
Review/objective evaluation of significant judgements & conclusions
Checklists

13. ECA quality assurance objectives and recent tasks

14. Quality assurance Aims
give reasonable assurance on adherence to professional standards, audit manuals, quality control procedures
contribute towards the development and improvement of the ECA’s working practices, outputs, quality control system (identifying good practice, inadequate quality and corrective action)
make the ECA's future audit work more effective and/or efficient
Implementation
Quality assurance tasks approved by AQCC annually
Done by DQC staff
Reporting to AQCC

15. Quality assurance strategic plan (2017-2019)
Tasks finalised in 2017:
Examination of consistency of messages in our reports
Tasks finalised in 2018:
Review of compliance with detailed ISSAI requirements for performance audits (PA iCATs)
Stocktaking of quality control arrangements for performance audits
Review of compliance with detailed ISSAI requirements for compliance audits (CA iCATs)
Tasks (to be) finalised in 2019:
Assessment of audit clearing process
Use of time and resources in selected audits
PMF assessment
Review of compliance with detailed ISSAI requirements financial audits (FA iCATs)