International Journal of Government Auditing – October 2010
Financial Audit Subcommittee
During the XX INCOSAI in Johannesburg, the Financial Audit Subcommittee (FAS) will present a comprehensive set of Financial Audit Guidelines—consisting of 38 ISSAIs for financial audit to be used in the audit of financial statements—for endorsement. In addition, FAS will have an exhibit at the congress where participants can ask questions about the ISSAIs. There will be a special event to launch all the ISSAIs presented for endorsement by the congress.
Development of Standards and Guidelines
- FAS has approved the translations of International Standards of Supreme Audit Institutions (ISSAI) 1000 and 1003 into the five official INTOSAI languages.
- The FAS Chair, Gert Jönsson, and FAS Director, Jonas Hällström, attended the International Auditing and Assurance Standards Board (IAASB) meeting in St. Julians, Malta, in September in their capacities as IAASB member and technical advisor, respectively
- FAS continues to appoint experts to IAASB task forces. There are INTOSAI experts on task forces to revise International Standard on Accounting (ISA) 610, Special Considerations—Using the Work of Internal Auditors, and ISA 720, The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements.
- The endorsement versions of the ISSAIs for financial audit are available on the ISSAI Web site in all five official INTOSAI languages.
FAS held a meeting hosted by the Swedish National Audit Office on the island of Sandhamn outside of Stockholm, Sweden, September 8–9, 2010. The meeting focused on the subcommittee’s work after 2010 and included a discussion on the IAASB’s strategy for 2012–2014.
For additional information, please contact the FAS Secretariat:
Web site: http://psc.rigsrevisionen.dk/fas
Capacity Building Committee
The INTOSAI Capacity Building Committee (CBC) held its 4th steering committee meeting at the U.S. Government Accountability Office in Washington, D.C., June 30–July 1, 2010. In addition to committee members, participants included representatives of the World Bank and the INTOSAI Development Initiative (IDI). During the meeting, participants reviewed the CBC’s progress to date and endorsed guides and other outputs the CBC had undertaken in the last year that are to be officially presented during the XX INCOSAI in South Africa in November 2010.
Participants in the steering committee meeting of the Capacity Building Committee in Washington, D.C.
A representative of the SAI of South Korea reported on the work of the United Nations (UN)/INTOSAI platform, whose goal is to increase public awareness of the role of SAIs. Contact will be made with the UN Department of Economic and Social Affairs to discuss resuming the work of the platform and how it can contribute to the 2011 UN/INTOSAI symposium in Vienna. The platform’s work will include addressing the INTOSAI resolution that aims to embed the Lima and Mexico Declarations into international law.
Reports from the CBC Subcommittees
Each of the three CBC subcommittees reported on its work to date. Subcommittee 1, which is chaired by the SAI of the United Kingdom and promotes increased capacity-building activities among INTOSAI members, reported that the guide entitled Introducing Professional Qualifications for Audit Staff had been issued and sent to all SAIs. It is being translated into Arabic and German. Two additional guides, Human Resources Management and How to Increase the Use of Audit Reports, are nearing completion. The steering committee approved the Introducing Professional Qualifications for Audit Staff guide and agreed that in the coming weeks it would electronically approve the guides on Human Resources Management and How to Increase the Use of Audit Reports in order to be ready for the XX INCOSAI.
Sweden reported that a new guide on strategic considerations for SAIs in planning to implement and adapt International Standards of Supreme Audit Institutions (ISSAI) was being drafted. Also, the subcommittee will prepare a paper on INTOSAI’s possible role in supporting SAIs during the aftermath of emergencies such as natural or man-made disasters.
Subcommittee 2, which is chaired by the SAI of Peru and develops advisory and consultant services, reported that to develop its database of experts, it has launched an application to register and search for consultants and experts who have worked for member SAIs. To date, 27 SAIs have registered as users. The committee also reported that two guides have been developed:
- The Guide for Cooperative Audit Programs between SAIs, prepared by the SAI of Germany, is in the final stage of drafting and is available in English and German.
- Guidelines for Internship Programs, prepared by the SAI of Pakistan, has been drafted and will be sent to the subcommittee members for comment.
Subcommittee 3, which is chaired by the SAI of Germany and promotes best practices and quality assurance through voluntary peer reviews, reported that a Peer Review Guide and Peer Review Checklist have been developed, that 21 peer reviews have been documented to date, and that best practices from those reviews have been incorporated into the guides. The steering committee approved the guide and the subcommittee’s request to pursue the possibility of including peer review guidelines in the ISSAI framework to ensure the widest dissemination possible.
CBC Guides and Databases
The following guides are the main outputs of the CBC to date:
- Building Capacity in Supreme Audit Institutions (approved by the 2007 INCOSAI)
- Introducing Professional Qualifications for Audit Staff (to be approved by the 2010 INCOSAI)
- Peer Review Guide (to be approved by the 2010 INCOSAI)
- Human Resource Management (to be approved by the 2010 INCOSAI)
- How to Increase the Use of Audit Reports (to be approved by the 2010 INCOSAI)
- Strategic Considerations Facing SAIs Planning to Implement and Adopt the ISSAIs (draft)
- Guide for Cooperative Audit Programs between SAIs (draft)
- Guidelines for Internship Programs (draft)
For more details, contact the CBC:
E-mail: firstname.lastname@example.org, email@example.com
Web site: http://cbc.courdescomptes.ma, www.cbcdirectory.org
Working Group on the Fight against Corruption and Money Laundering
The Working Group on the Fight against Corruption and Money Laundering, chaired by the Central Auditing Organization of Egypt, held its fourth meeting in Quito, Ecuador, August 5–6, 2010. During that meeting, working group members discussed issues critical to implementing the objectives of the group’s 2008–2011 work plan.
- Group members agreed on a framework of mechanisms needed to implement the following themes, which were adopted during the working group’s third meeting (held in Jakarta, Indonesia, in July 2009) and are to be considered as draft guidelines for SAIs:
- preventing and fighting against corruption, including the recovery of confiscated stolen assets;
- promoting integrity, transparency, accountability, and proper management of government property; and
- identifying challenges facing SAIs in fighting money laundering.
- Teams were formed to carry out projects to elaborate guidelines for SAIs that draw upon the experiences of others and will help SAIs prepare useful and applicable guidelines for their various systems.
- Group members approved the guidelines developed by the SAI of the Russian Federation on controls to fight corruption and money laundering. The working group and the INTOSAI Development Initiative are discussing ways to cooperate in developing a framework for a professional training program in fighting corruption and money laundering. The guidelines are to be incorporated into the program material; the proposed methodology for implementing and designing the training program will be to develop a pilot program in one of INTOSAI’s regional working groups. Based on the results of the pilot, the program will be revised and translated into INTOSAI’s other official languages in cooperation with the SAIs of the working group members.
The working group agreed upon proposed forms of cooperation with international organizations identified as key international partners in the fight against corruption and money laundering:
- the World Bank Financial Market Integrity Unit and
- the EGMONT Group.
- The U.S. Government Accountability Office was asked to prepare and implement a report on this area.
- Working group members discussed the analysis of the results of the working group’s first questionnaire. The results are to be presented for approval at the XX INCOSAI in Johannesburg, South Africa. The questionnaire was prepared by the Central Auditing Organization and submitted to the working group during its third meeting in Jakarta after being circulated to all INTOSAI working groups for comment. This process reflects the working group’s belief that increased communication among INTOSAI committees and working groups is necessary to reach high-level consensus and that the greater the participation, the more significant will be the outcomes.
- The working group members also discussed the group’s draft work plan for 2012–2015.
For additional information, please contact the Central Auditing Organization:
Web site: www.wgfacml.cao.gov.eg