Session 1. Introduction to the Toolkit

Sub-objectives of Session 1.

• The purpose of the toolkit• Outline of the contents• How can we use the toolkit?• The role of AFROSAI-E in the region • Underlying principles of the toolkit

– Westminster system of accountability– ISSAI framework and the link to the toolkit

The Purpose of the Toolkit• What is the toolkit aiming to achieve?

– Improve communication and relationship between SAI and PAC

– Response by SAIs to the needs of PAC

– Better reporting practices and audit reports

– Positive impact on accountability processes

– Enable champions to disseminate contents of the toolkit.

Contents of the ToolkitDocument in the toolkit DescriptionModule 1. Introduction to the toolkit Includes general information relevant

to the other modules.Module 2. SAI/PAC Communication Strategy

Outlines strategies for increasing SAI/PAC communication and strengthening their working relationship.

Module 3. Reporting in line with the expectations of PAC’s for regularity audit

Highlights potential expectation gaps of PACs regarding regularity and performance audit reports. It gives practical guidance relating to the considerations and actions which SAIs may have to improve on their reports.

Module 4. Reporting in line with the expectations of PAC’s for performance audit

Training material Covering all the modules aiming to assist in regional training events

How to use the toolkit• Module 1 contains general information

relevant for all the other modules. Information in module 1 should be considered before referring to any of the other modules.

• Module 2, 3 and 4 are self standing modules which can be used separately when needed.

• The training materials includes all modules

Communication in AFROSAI-E

Strategic Imperatives of AFROSAI-E

• Independence• IT infrastructure, IT auditing and electronic

working papers• Human resource management• Quality assurance• Performance auditing• Communication and relationships

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ICBF domains

• Independence and legal framework• Organisation and management• Human resources• Audit methodology and standards• Communication

Communication Handbook & Strategies

• Communication Handbook including PAC interaction

• According to ICBF SAIs should have communication strategies which include PAC

Underlying principles of the toolkit

Oversight in a Westminster system• Process of oversight

– Statutory reporting responsibility of Accounting Officers

– SAI audits the statutory reports of government and issues an audit report

– PAC will conduct hearings on the issues raised in the audit report and follow-up on recommendations. PAC’s report is issued at the end of the process.

• Mutual dependency: importance of a well functioning SAI/PAC partnership

Westminster systems of accountability

Parliament / Public Accounts Committees

Accounting officers of government

Supreme Audit Institutions

Audit

Standards of INTOSAI • INTOSAI (International Organisation of Supreme Audit Institutions)

• International• Standards of• Supreme • Audit• Institutions

The ISSAI hierarchy

Level Subject ISSAI No

1: Founding Principles

Lima Declaration 1

2: Prerequisites for functioning of SAIs

Independence Transparency and Accountability Ethics, Quality

10-40

3: Fundamental Auditing Principles

General-, Field-, and Reporting Standards

100-400

4: Auditing Guidelines

Financial Audit Guidelines Compliance Audit Guidelines

1000-2999 4000-4999

The ISSAIs and the toolkitSection 17 of the Lima Declaration• The reports of the SAI: ‘... shall present the facts and their

assessment in an objective, clear manner and [are] limited to essentials.

The wording of the reports shall be precise and easy to understand.

The SAI shall give due consideration to the points of view of the audited organisations on its findings’.

• Mexico declaration principles 6 and 7

ISSAI 10, the Mexico Declaration

• SAI should have freedom to: – Report the results of their regularity or

performance audit work and – Report to parliament at least once a year. – Determine the content and timing of reports– Decide on audit topics / special investigations– Publish or disseminate reports– Submit reports to parliament or to a PAC for

follow-up.

Why should we follow ISSAIs?

• Gives confidence and credibility in our

work• Provides for high quality audits – improving on objectivity, validity and

reliability of reports• Provides basis for professionalism and

consistency in audit practices