Reporting on internal control
in the light of the results of the survey
of the Subcommittee on Internal Control
Standards
Maria Sieklucka
Senior Public Audit Expert
Department of Environment
May 2014
Strenght of accountability
Changes in the public service
environment
Unparalleled challenges faced
by the public sector
Strong commitment to integrity,
good governance, ethical values,
transparency and the rule of law
2
Transparency and reporting – the way of achieving good
governance and delivering effective accountability
Internal control in public sector
organisations needs to be relevant
to specific characteristics of these
organisations and to the changes
faced by the public sector
Slow shift of focus from purely
financial aspects related to the area
of management and planning
Growing importance of using
appropriate methods and tools to
target effects, outcomes and
to proceed with uncertainty
3
The basics of reporting on internal control
in the light of INTOSAI GOVs
INTOSAI GOV
9100 –
Guidelines for
Internal Control
Standards for the
Public Sector
INTOSAI GOV
9110 – Guidance
for Reporting on
the Effectiveness
of Internal
Controls: SAI
Experiences in
Implementing
and Evaluating
Internal Controls
4
Survey – aim and scope
The aim:



the extent to which internal
control reporting by public
sector entities exists, the forms
and the underlying frames of
reference
the SAIs’ involvement in
reporting on internal control
updating INTOSAI GOV 9110
on internal control reporting
The scope:




Answers from 64 INTOSAI
members from all over the world
legal and organisational
framework for reporting
on internal control
the scope of internal control
assessment and reporting
on internal control by public
sector entities
assessment of reports on internal
control and auditing of internal
control
an opinion on the revision of
INTOSAI GOV 9110 Guidance for
Reporting on the Effectiveness of
Internal Controls: SAI
Experiences in Implementing and
Evaluating Internal Controls
5
Conclusions
common approach
among public sector
entities to assess their
internal control systems
on a regular and
systematic basis
involvment of
internal auditors
and visible
commitment
of the national
SAI in the
assessment of
reports on
internal control
and auditing
of internal control
broad and explicit
distinctions in the
scope and range
of the legal obligation
regarding reporting
on internal control in
the public sector
positive opinion
on revision of
INTOSAI GOV
9110
6
Weak points of reporting
narrow scope and range of obligation to report
in most of the countries
s
established reporting to the public only in a few
countries
s
low popularity of the self-assessment attitude
e
c
focusing on compliance with legal acts and
regulations rather than on the effectiveness of the
implementation of objectives and tasks performance
u
s character
discussion
of the INTOSAI GOV 9110
c
7
Further improvement of reporting
raising awareness about the importance and
relevance of effective internal control in public sector
underlining the necessity to fulfil accountability
obligations
increasing SAIs’ role in promotion of good practices
in the assessment of reports on internal control and
auditing of internal control
revision of INTOSAI GOV 9110
S
U
C
C
E
S
S
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Thank you
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