News from the PSC
Nanna Schnipper
The PSC Secretariat
PSC
INTOSAI Professional Standards Committee
The International Standards of Supreme Audit Institutions (ISSAI) - 2010
Founding Principles
ISSAI 1 The Lima Declaration
The fundamental principles of INTOSAI
Prerequisites for the functioning of SAIs
ISSAI 10
ISSAI 20
ISSAI 30
ISSAI 40
The Mexico Declaration on SAI Independence
Principles of Transparency and Accountability
Code of Ethics
Quality Control for SAIs
Prerequisites for the functioning of SAIs
Fundamental Auditing Principles
ISSAI 100
ISSAI 200
ISSAI 300
ISSAI 400
Basic Principles
General Standards
Field Standards
Reporting Standards
Auditing guidelines
Express the essence of public sector
auditing
General audit guidelines:
ISSAI 1000-2999 Financial Auditing Guidelines
ISSAI 3000-3900 Performance Audit Guidelines
ISSAI 4000-4999 Compliance Audit Guidelines
Specific guidelines:
ISSAI 5000-5099 International Institutions
ISSAI 5100-5199 Environmental Audit
ISSAI 5200-5299 Privatisation
ISSAI 5300-5399 IT-audit
ISSAI 5400-5499 Audit of Public Debt
ISSAI 5500-5599 Audit of Disaster-related Aid
ISSAI 5600-5699 Peer Reviews
Translates the fundamental auditing
principles into more specific, detailed
operational guidance
A New Level 3 – Goal A
The International Standards of Supreme Audit Institutions (ISSAI) – goal for 2013
Founding Principles
ISSAI 1 The Lima Declaration
Prerequisites for the functioning of SAIs
ISSAI 10
ISSAI 20
ISSAI 30
ISSAI 40
The Mexico Declaration on SAI Independence
Principles of Transparency and Accountability
Code of Ethics
Quality Control for SAIs
Fundamental Auditing Principles
ISSAI 100
ISSAI 200
ISSAI 300
ISSAI 400
Basic Principles
General Standards
Field Standards
Reporting Standards
Auditing guidelines
General audit guidelines:
ISSAI 1000-2999 Financial Auditing Guidelines
ISSAI 3000-3900 Performance Audit Guidelines
ISSAI 4000-4999 Compliance Audit Guidelines
Specific guidelines:
ISSAI 5000-5099 International Institutions
ISSAI 5100-5199 Environmental Audit
ISSAI 5200-5299 Privatisation
ISSAI 5300-5399 IT-audit
ISSAI 5400-5499 Audit of Public Debt
ISSAI 5500-5599 Audit of Disaster-related Aid
ISSAI 5600-5699 Peer Reviews
ISSAI 100
Fundamental principles of
public sector auditing
ISSAI 200
Fundamental principles of
financial auditing
ISSAI 300
Fundamental principles of
performance auditing
ISSAI 400
Fundamental principles of
compliance auditing
The fundamental auditing
principles
A credible set of standards that can unite
INTOSAI
A common language for public sector auditing
PSC
INTOSAI Professional Standards Committee
ISSAI 100 – the common elements of public sector auditing
Ethics &
independence
Professional
judgment, due
care and
scepticism
Quality control
Audit team
management & skills
Audit risk
Materiality
Documentation
Communication
PRINCIPLES RELATED TO THE AUDIT PROCESS
Planning the audit
• Establish the terms
of the audit
• Obtain
understanding
• Conduct risk
assessment or
problem analysis
• Identify risks of
fraud
• Develop an audit
plan
Conducting the
audit
• Perform the
planned audit
procedures to
obtain audit
evidence
• Evaluate audit
evidence and draw
conclusions
Reporting and follow-up
• Prepare a report
based on the
conclusions
reached
• Follow up on
reported matters
as relevant
Making reference to the ISSAIs
• The authority of the ISSAIs is defined in ISSAI
100, which also explains what it means to
comply with the ISSAIs
Two options presented in ISSAI 100
PSC
INTOSAI Professional Standards Committee
Making reference to the ISSAIs
Option 1:
• We conducted our audit in accordance with
[national standards] based on (or consistent
with) the Fundamental Auditing Principles
(ISSAI 100-999) of the International Standards
of Supreme Audit Institutions.
PSC
INTOSAI Professional Standards Committee
Making reference to the ISSAIs
Option 2:
• We conducted our (financial, performance
and/or compliance) audit (or audits) in
accordance with the International Standards
of Supreme Audit Institutions (on financial,
performance and/or compliance auditing).
PSC
INTOSAI Professional Standards Committee
ISSAIs 200, 300 and 400
• Defines the key principles for financial,
performance and compliance auditing;
• Define best practice;
• Can be adopted by the SAIs as authoritative
auditing standards if relevant.
PSC
INTOSAI Professional Standards Committee
Level 4
• Editorial consequences for the auditing
guidelines at level 4 (ISSAIs 1000-4999)
• The project group has developed a set of
drafting conventions to ensure uniform use of
concepts and writing style
PSC
INTOSAI Professional Standards Committee
PSC 2014-2016
Achievements so far…
• A complete ISSAI Framework
• SAI’s use the ISSAIs as a foundation for their
audit work.
• INTOSAI’s members and external stakeholders
have expectations to the ISSAIs’ quality and
relevance
PSC
INTOSAI Professional Standards Committee
PSC 2014-2016
Challenges ahead…
• It is essential that INTOSAI strengthens its
position as an internationally recognized
standard-setter
• It is necessary that the PSC has the needed
capacity and process to ensure the quality and
credibility of the ISSAIs.
PSC
INTOSAI Professional Standards Committee
PSC 2014-2016
Challenges ahead…
• Business as usual may have negative
consequences for the quality of the ISSAI
Framework
• It takes commitment to be a credible
standard-setter.
PSC
INTOSAI Professional Standards Committee
News from the Chair
• MoU with IFAC and IIA is up for renewal
• New appointments
• Withdrawal of ISSAI GOVs 9200, 9210, 9220
and 9230.
• Changes in the Subcommittees
PSC
INTOSAI Professional Standards Committee
News from the Chair
• Establishment of maintenance reviews for all
ISSAIs and INTOSAI GOVs
 Review of ISSAI 30 Code of Ethics
starting late 2013/early 2014
 Review of level 4 (1000-4999) starting
2014
PSC
INTOSAI Professional Standards Committee
Thank you
PSC
INTOSAI Professional Standards Committee