INTOSAI The International Organisation of Supreme Audit Institutions (INTOSAI) operates as an umbrella organisation for the external government audit community. At present INTOSAI has 190 Full Members and 4 Associated Members.

On 22 Dec 2011 the 66th United Nations General Assembly adopted the resolution“ promoting the efficiency, accountability, effectiveness and transparency of public administration by strengthening supreme audit institutions”.

INTOSAI

– Congress

– Governing Board, 18 members

– General Secretariat in Vienna, Austria

– Regional Groups

– Committees

– Working Groups

INTOSAI CONGRESS

• The supreme organ composing of all Members.

• Holds regular meetings once in every three years -chaired by the hosting SAI

• First was in 1953 in CUBA

• Next (21st) is in CHINA in 2013

INTOSAI CONGRESS

I 1953 CUBA

II 1956 BELGIUM

III 1959 BRAZIL

IV 1962 AUSTRIA

V 1965 ISRAEL

VI 1968 JAPAN

VII 1971 CANADA

VIII 1974 SPAIN

IX 1977 PERU

X 1980 KENYA

XI 1983 PHILIPPNES

XII 1986 AUSTRALIA

XIII 1989 GERMANY

XIV 1992 U S A

XV 1995 EGYPT

XVI 1998 URUGUAY

XVII 2001 KOREA

XVIII 2004 HUNGARY

XIX 2007 MEXICO

XX 2010 SOUTH AFRICA

LIMA DECLARATION (PERU 1977)- purpose of audit

• Concept of audit is inherent in public financial administration

because management of public funds represents a trust.

• Audit is not an end in itself but an indispensable part of a

regulatory system whose aim is to ___ reveal deviations/

violations of the principles of legality, efficiency,

effectiveness ______ early enough to make it possible to

take corrective action in individual cases, to make those

accountable accept responsibility, to obtain compensation,

or to take steps to prevent--or at least render more

difficult--such breaches.

LIMA DECLARATION 1977

• Independence of Supreme Audit Institution

• Relationship to Parliament, Government,

Administration

• Power of Supreme Audit Institution

• Audit Powers of Supreme Audit Institution

• Reporting

• (1998 URUGUAY) The Code of Ethics statement of values and principles guiding the daily work of the auditors.

Integrity, impartiality, objectivity etc

• (2004-HUNGARY-BUDAPEST) Auditing Standards at high level - postulates

and principles for carrying out the audit work Basic Principles, General Standards, Field

Standards, Reporting Standards

(2007 MEXICO) - MEXICO DECLARATION• The existence of an appropriate and effective

constitutional/statutory/legal framework • Independence of SAI heads and members –

legal immunity • Broad mandate and full discretion• Adopted Eight Core Principles which flow from the

Lima Declaration and decisions of subsequent Congresses as essential requirements of proper public sector auditing, unrestricted access to information (records), financial autonomy etc

REGIONAL GROUPS• Regional Professional and technical cooperation

• AFROSAI• ARABOSAI – 22 Arabic speaking

• ASOSAI• CAROSAI – Caribbean

• EUROSAI• OLACEFS –Organization of Latin American Caribbean

• PASAI – Pacific Association

INTOSAI COMMITTEES

• Professional Standards Committee Standards on Financial Audit, Compliance Audit,

Performance Audit, Internal Controls, Quality control

• Capacity Building Committee• Knowledge Sharing Committee Standards on IT Audit, Environmental Auditing, PPP,

Privatisation, Economic regulation, Public debt etc

• Finance & Administration Committee

INTOSAI STANDARDSAugust 2012

“Experientia Mutua Omnibus Proudest”"Mutual experience benefits all"

International Standards of Supreme Audit Institutions

ISSAIs इसा�ईसा INTOSAI

Auditing StandardsINDIAN AUDIT AND

ACCOUNTS DEPARTMENT

AUDITING STANDARDS

1st Edition 19942nd Edition 2002

Comptroller and Auditor General of India

The standards developed by INTOSAI for guiding the Government Audit profession are termed as International Standards of Supreme Audit Institutions (ISSAI). These standards are hierarchically divided into four groups or levels.

• Level-1: Founding Principles

• Level-2: Prerequisites for functioning of Supreme Audit Institutions

• Level-3: Fundamental Auditing Principles

• Level-4: Auditing Guidelines-Implementation guidelines, specific guidelines

Level 1: Founding principles • ISSAI 1 : LIMA Declaration (1977)

Level 2: Prerequisites for the Functioning of Supreme Audit Institutions  ISSAI 10 : Mexico Declaration on SAI Independence (1987)

ISSAI 11 : INTOSAI Guidelines & Good Practices Related to SAI Independence  

ISSAI 20 : Principles of Transparency & Accountability

ISSAI 21 : Principles of Transparency - Good Practices 

ISSAI 30 : Code of Ethics 

ISSAI 40 :  Quality Control for SAIs

Level 3: Fundamental Auditing Principles

• ISSAI 100: INTOSAI Auditing Standards - Basic Principles • ISSAI 200 : INTOSAI Auditing Standards - General Standards • ISSAI 300: INTOSAI Auditing Standards - Field Standards • ISSAI 400 :INTOSAI Auditing Standards - Reporting

Standards

Under 4th level there are three sets of guidelines

Implementation Guidelines

Specific Guidelines

Guidance on Good Governance

Level 4: Implementation Guidelines

ISSAI 1000 to 2999 : Financial Auditing Guidelines about 50 standards in this series for example

standard 1500 audit evidence; 1530 audit sampling

ISSAI 3000 to 3999: Performance Auditing Guidelines 2 standards in this series-3000,3100

ISSAI 4000 to 4999 :Compliance Auditing Guidelines 3 standards in this series-3000,3100

Level 4: Auditing Guidelines - Specific Guidelines on

ISSAI 5000 to 5099: Audit of International Institutions

ISSAI 5100 to 5199: Environmental Audit

ISSAI 5200 to 5299: Audit of Privatisation

ISSAI 5300 to 5399: IT-Audit

ISSAI 5400 to 5499 :Audit of Public Debt

ISSAI 5500 to 5599 : Audit of Disaster related Aid

ISSAI 5600 to 5699 :Peer Review Guidelines

Guidance on Good Governance

• ISSAI 9100 to 9199: Internal controls,

Risk Management

6 standards in this series

• ISSAI 9200 to 9299: Accounting Standards

5 standards in this series

Why standards?• Why do we need Auditing Standards?• Standards help to ensure that products and

services live up to your expectations (users) safe, reliable and of good quality

• Examples –

• Accounting or Financial Reporting Standards (by Government for tax purpose, by shareholders/investors)

Why auditing standards?• Assurance about the quality of audit done to

the users of the audit reports• Use them as bench mark or measure while

doing audit, common frame of reference • Standardisation of process and products,

uniformity between all the auditors- audits, so that comparison is fair

• Increases credibility, increase of level of perception – for users

Auditing StandardsINDIAN AUDIT AND

ACCOUNTS DEPARTMENT

AUDITING STANDARDS

1st Edition 19942nd Edition 2002

Comptroller and Auditor General of India

our audit manuals were standards

• First edition of Defence Audit Manual 1922

• First edition of P&T Audit Manual 1928 **

• First edition of Railway Audit Manual 1932

• Revenue Audit Manuals 1961 (Customs earlier)

• First edition of MSO 1963 (compliation)

• First ed of Commercial Audit Manual 1974

• Manual of Audit of Autonomous Bodies 1983

• Performance Audit Manual, Financial Attest

Level 3: Fundamental Auditing Principles

• ISSAI 100: INTOSAI Auditing Standards - Basic Principles

• ISSAI 200 : INTOSAI Auditing Standards - General Standards

• ISSAI 300: INTOSAI Auditing Standards - Field Standards

• ISSAI 400 :INTOSAI Auditing Standards - Reporting Standards

In rest of the places the word ‘guidelines’ is used (ISSSAI 10000 to 9299)

Fundamental Auditing Principles - revised

• ISSAI 100: Fundamental Principles of

Public Sector Auditing• ISSAI 200: Fundamental Principles of

Financial Auditing• ISSAI 300: Fundamental Principles of

Performance Auditing• ISSAI 100: Fundamental Principles of

Compliance Auditing

standards for any audit

Auditors-Skills, ethics, independence, objectivity, professional behaviour

Exercising professional care, professional scepticism, quality standards during audit

Audit involves three parties – auditor, auditee and user- terms of engagement

Subject matter to be audited, understanding the entity, audit risk, planning the audit

standards for any audit ..continued

Audit objectives

Audit criteria

Audit procedures (standard does not elaborate the procedures) – review of internal controls- substantive testing (analytical review)

standards for any audit ..continuedMateriality, significant deviations Sufficient appropriate audit evidence Audit findings, conclusions Documentation of entire audit process & evidence

Reporting -reasonable assurance/ short form Reporting -exception reporting/ long form Discussion in Legislative committeesFollow-up

Auditors-Skills, ethics, independence, objectivity, professional behaviour

Exercising professional care, professional scepticism, quality standards during audit

Audit involves three parties – auditor, auditee and user- terms of engagement

Subject matter for audit, understanding the entity, audit risk, planning the audit

Audit objectives-

Audit criteria

Audit procedures (review of controls, substantive testing)

Materiality, significant deviations Sufficient appropriate audit evidence

Audit findings, conclusions

Documentation of entire audit process and evidence

Reporting (reasonable assurance-short form report)(exception reporting-long form report)- Discussions in Legislative Committee- Follow up