The story of public sector auditing Sets out from mandates A part of national democratic systems Contributes to transparency, accountability, good governance and effectiveness in the public sector
ISSAI 100/400 – elements Authorities and criteria Subject matter The three parties Assurance
ISSAI 100/400: Types of engagements Attestation engagements It is the responsible party who measures the subject matter against criteria and presents the subject matter information, on which the auditor gathers sufficient and appropriate audit evidence to provide a reasonable basis for expressing a conclusion. Direct reporting engagements It is the auditor who measures or evaluates the subject matter against criteria. The auditor selects the subject matter and criteria, taking into consideration risk and materiality. The outcome of measuring the subject matter against the criteria is presented in the audit report in the form of findings, conclusions, recommendations or an opinion.
The users wish to be confident about the reliability and relevance of information used as basis for their decisions. Can be achieved in: 1. Different forms: through opinions and conclusions which explicitly convey the level of assurance or in other forms 2. Different levels:reasonable and limited assurance ISSAI 100/400: Assurance
Audit types differ in: objectives, types of engagements and ways of providing assurance Public sector auditing Financial Compliance Performance
Compliance – the bridge is still there Both: Direct reporting and attestation engagements Limited and reasonable assurance Opinions and conclusions
Harmonization – levels of ISSAIs Level 3: Principles ISSAI 400 Level 4: Auditing guidelines that may be applied as authoritative standards ISSAI 4000 series
Harmonization: Consequences for SAIs The principles can be used to establish authoritative standards in three ways: as a basis on which SAIs can develop standards; as a basis for the adoption of consistent national standards; as a basis for adoption of the General Auditing Guidelines as standards. What standards the audits are based on is to be stated publicly by the SAI.
Harmonization: Consequences for CAS Maintenance of ISSAI 4000 series: Consistency in terminology, structure and contents with level 3 Distinguish clearly between requirements and guidance «Should» in ISSAI 400 is to become «shall» in the ISSAI 4000 series