Authority of the INTOSAI Fundamental Audit Principles
1.
INTOSAI Fundamental Principles contain the fundamental auditing principles for audit
work conducted by the Supreme Audit Institution. While it is the responsibility of each
Supreme Audit Institution to judge the extent to which the standards are compatible with
its mandate, viewed in the particular constitutional and legal circumstances of the audit
organization, one of the principles outlined in the INTOSAI Code of Ethics is the public
sector auditor’s obligation to apply generally accepted auditing standards.
2.
The INTOSAI Fundamental Principles states a number of key principles related to the
conduct of audit work within SAIs, although the word “principles” is used throughout the
documents, it is understood that this word is to be used synonymously with the authority
for compliance within the domain of each Supreme Audit Institution. The INTOSAI
Fundamental Principles do not have mandatory application; they reflect a “best practice”
consensus among Supreme Audit Institutions and therefore each institution must judge
the extent to which the standards are compatible with its mandate.
3.
The INTOSAI Fundamental Principles constitutes the framework of audit standards for
INTOSAI members. INTOSAI recognizes that this framework together with the guidance
provided by the INTOSAI Financial, Performance and Compliance Audit Guidelines will
provide INTOSAI members with relevant concepts and guidance for conducting these
types of audits.
4.
In order to apply requirements in the Fundamental Audit Principles properly, the auditor
should have an understanding of the entire text related to the principles included in the
Fundamental Audit Principles. The understanding also includes an understanding of the
guidance related to the specific audit task defined in the guidelines on the level four in the
ISSAI structure.
5. The auditor should not represent compliance with the Fundamental Audit Principles in
the audit report or the auditor’s report unless the auditor has complied with the
requirements of all relevant principles. A principle is relevant to the audit when the
circumstances addressed by the principle exist.
6.
Ethics and quality control procedures are defined as general principles in the
Fundamental Audit Principles. In order to comply with the Fundamental Audit Principles
the auditor should also comply with the relevant ethical requirements, as well as being
subject to a system for quality control including policies and procedures designed to
provide reasonable assurance that the SAI and its personnel comply with relevant ethical
requirements, including those pertaining to independence.
7.
SAIs that are applying the Fundamental Audit Principles as the authoritative standards
that they are making reference to in there audit reports or auditor’s report, therefore also
needs to adopt the requirements as formulated in ISSAI 30, INTOSAI Code of Ethics and
ISSAI 40, INTOSAI Quality Control
The appropriate format of representing compliance in the audit report or Auditor’s Report
should be to reference the appropriate ISSAI or ISSAIs relevant to the audit work carried
out, for instance a compliance audit engagement conducted in accordance with the
INTOSAI Fundamental Audit Principles will be referenced;
8.
.. We conducted our audit in accordance with the INTOSAI Fundamental Audit Principles
on Compliance Audit (alternatively ISSAI 400)...
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Authority of the INTOSAI Fundamental Audit Principles on Financial
audit
1.
The INTOSAI Fundamental Audit Principles on Financial Audit are developed to address
the key principles related to an audit of financial statements in the public sector. The
INTOSAI Financial Audit Guidelines are developed to support the application of the
INTOSAI Fundamental Principles in providing more detailed guidance supporting the
principles in the INTOSAI Fundamental Audit Principles of Financial Audit. Applying
the INTOSAI Financial Audit Guidelines as guidance will not diminish the use of
INTOSAI Fundamental Principles as the authoritative auditing standards. In this
circumstance reference is made to the INTOSAI Fundamental Principles as the
authoritative standards applied.
2.
Public sector auditors in some jurisdictions may choose to have the Financial Audit
Guidelines as the authoritative standards they conduct the audit in accordance with.
Reference to the use of them as standards can, depending on the standards applied and the
SAI’s mandate be done in two ways:
(a) In accordance with the ISSAIs (1000-2999); which means full compliance with all
relevant ISAs and the additional guidance set out in the INTOSAI Practice Notes to the
ISAs.
(b) In accordance with the ISAs; which includes compliance with all relevant ISAs.
When the guidelines are used as standards, auditors of public sector entities also respect
the authority of the ISAs. SAIs are encouraged to strive to full adoption of the guidelines
on level 4 as their authoritative standards. They have been developed to reflect best
practice. INTOSAI recognizes that in some environments this might not be possible due
to lack of basic requirements in government structure or due to laws or regulations that
will not allow for the premises attached to an audit of financial statements in accordance
with level 4. SAIs in such environments has the option to make reference to the
Fundamental Audit Principles of Financial Audit.
3. Public sector auditors who state in their auditor’s report on a set of financial statements
that the audit has been conducted in accordance with the ISAs are also encouraged to
apply the additional public sector guidance in ISSAIs 1000-2999. Where public sector
auditors have additional audit and reporting responsibilities, references to other applicable
standards will also be necessary.
4.
The INTOSAI Financial Audit Guidelines may also, if relevant, be used by Supreme
Audit Institutions to support the use of other national standards for financial audits. This
is appropriate only when the national audit standards are consistent with the INTOSAI
Financial Audit Guidelines.