Inside INTOSAI

International Journal of Auditing – October 2004

Update on the Development of Financial Audit Guidelines

Through the Journal, the INTOSAI Auditing Standards Committee (ASC) will regularly update the INTOSAI community on progress being made in the development of financial audit guidelines. ASC is carrying out this work through a working group, chaired by Sweden and consisting of nine SAIs; a project secretariat set up at the Swedish National Audit Office; and contributions by members of a reference panel of 87 audit experts from 46 SAIs.

The development of the guidelines is based on close cooperation with the International Federation of Accountants’ (IFAC) International Auditing and Assurance Standards Board (IAASB) with the aim of including public sector considerations in the International Standards on Auditing (ISA). See the article “Developing International Auditing Standards: Cooperation between INTOSAI and the International Federation of Accountants” (p. 20) for additional information on this collaborative effort.

Work in Progress on ISAs

Currently, work is in progress on the following ISAs where INTOSAI experts are involved:

ISA 230 – Documentation

Expert: Ms. Kelly Ånerud, Norway
Back-office experts: Mr. John Fretwell, United States; Mr. Inge Danielsson, Sweden
Final version expected in June 2005 and Practice Note due in March 2006

ISA 701 – Modifications to the Auditor’s Report

Expert: Ms. Bettina Jacobsen, Denmark
Back-office experts: Ms. Mary Radford, United Kingdom; Ms. Marcia Buchanan, United States
Final version expected in March 2005 and Practice Note due in December 2005

ISA 260 – Communications with Those Charged with Governance

Expert: Ms. Tove Myklebust, Norway
Back-office experts: Mr. Filip Cassel, Sweden; Mr. John Fretwell, United States
Final version expected in December 2005 and Practice Note due in September 2006

ISA 800 – Auditor’s Report on Special Purpose Audit Engagements

Expert: Mr. Jonas Hällström, Sweden
Back-office experts: Mr. Demsash Betemariam, Ethiopia; Mr. Martin Dees, the Netherlands; and Mr. Robert Cox, New Zealand

ISA 550 – Related Parties

Expert: Mr. John Thorpe, United Kingdom
Back-office experts: Ms. Zainun Taib, Malaysia; Mr. Uwe Schreiner, Germany; and Ms. Goranka Kiralj, Slovenia

ISA 580 – Management Representation

Expert: Ms. Vijaya Moorthy, India Back-office experts: Mr. Martin Garrido, Chile, and Mr. Ennio Colasanti, Italy

For more detailed and regularly updated information regarding this work or the standards, please visit the INTOSAI Auditing Standards Committee’s Web site: www.rigsrevisionen.dk/asc or the IFAC website: www.ifac.org.

Work in Progress on Practice Notes

ISA 240–The Auditor’s Responsibility to Consider Fraud and Error in an Audit of
Financial Statements: Mr. Björn Langerud, Norway

ISA 500–Audit Evidence: Mr. Henrik Söderhielm, Sweden

Appointment to the Focus Group

As mentioned in the July 2004 issue of the Journal, a focus group has been created to ensure that public sector issues are considered at as early a stage as possible in the process of deciding which ISAs need to be developed or revised. This focus group is proud to welcome a new member, Mr. Graham Randall from the Office of the Auditor General of South Africa, who joins Ms. Vijaya Moorthy from the Office of the Comptroller and Auditor General of India, Ms. Mary Radford from the National Audit Office of the United Kingdom, and Mr. Filip Cassel from the National Audit Office of Sweden.

New Project Director Appointed

We are pleased to announce that a new project director, Mr. Jonas Hällström, has been named to the Project Secretariat. Mr. Hällström has worked at the National Audit Office of Sweden since 1993 and is an Authorized Public Accountant and a Certified Information Systems Auditor (CISA). He previously worked 11 years at PricewaterhouseCoopers.

For further information, please contact the Project Secretariat or the Chair of the Working Group: projectsecretariat@riksrevisionen.se.

EUROSAI Working Group on Environmental Auditing

For the past 5 years, the Polish Supreme Chamber of Control has served as the coordinator of the EUROSAI Working Group on Environmental Auditing (WGEA) by virtue of a resolution adopted by the 5th EUROSAI Congress, held in Paris in 1999. With the support of regional subcoordinators (the SAIs of France, Malta, Romania, Norway, the Netherlands, and Russia), the Chamber has undertaken a number of initiatives to encourage European SAIs to participate in WGEA activities, especially parallel international audits and WGEA seminars and meetings that promote the exchange of information on audit findings related to environmental protection.

Environmental auditing has become an important audit activity for the European SAIs. Each year, the EUROSAI WGEA holds environmental auditing seminars to exchange related information between European and non-European SAIs. SAI representatives from other regions of the world, along with representatives of organizations involved in environmental protection, are regularly invited to participate. This year, the EUROSAI WGEA will hold a meeting, combined with a seminar on biodiversity and nature protection, in Sofia, Bulgaria, November 2-5, 2004. In addition to members from European SAIs, representatives of all the INTOSAI regional working groups on environmental auditing have been invited (including AFROSAI, ARABOSAI, ASOSAI, OLACEFS, SPASAI, and the WGEA Chair-Canada) to present findings from environmental audits completed in different regions of the world. Representatives of the Secretariat for the Convention on Biodiversity Protection have also been invited to participate in this year’s seminar.

The EUROSAI WGEA’s recommended auditing priorities, listed in its strategy, are

  • protection of biodiversity and nature, with a special focus on endangered species;
  • waste management, with a special focus on radioactive waste;
  • protection of the atmosphere, with a special focus on cross-border pollution; and
  • protection of water, with a special focus on pollution generated by agriculture.

Experiences resulting from already completed environmental audits make the EUROSAI WGEA’s activities an important source of information on the observance of provisions of international environmental agreements and conventions ratified by particular countries. This information is presented both at meetings of WGEA members and on the EUROSAI WGEA Internet page. It constitutes an important contribution to activities designed to improve the state of the natural environment and promote sustainable development.

For additional information, contact: EUROSAI WGEA, e-mail: eurosai-WGEA@nik.gov.pl; Web site: www.nik.gov.pl.