Task Force on Audits Quality

Control for SAIs

Aisha AL-Kandari

Task Team on Audits Quality Control

Membership

Tanzania Peru Hungary

Turkey Iraq Austria Kuwait

2017

2018

2019

Project Plan

Questionnaire

Analysis of the Responses

Questionnaire structure

1) Quality control / assurance systems in

place

2) Scope of quality control / assurance

systems

3) Quality regulatory framework

4) Organizational structure /

responsibilities for quality

5) ISSAIs 40 & 1220 implementation

6) Development of standards, policies

and/or procedures to ensure

7) Mechanisms to deal with risks

8) System to achieve quality objectives /

priorities

9) Quality in jurisdictional frameworks

10 ) Code of Ethics

11) policies and procedures of possesses the

knowledge, skills and experience

12) Training centers

13) Quality certification of

processes

14) IT Quality Management System

15) Quality monitoring16) Applicability of

policies / procedures17) Reporting 18) Quality indicators

19) Quality results20) Quality control external auditing

The responses to the

questionnaire were received

from 49 SAIs

Afghanistan

Australia

Azerbaijan

Bahrain

Belgium

Belize

Bhutan

Botswana

Bulgaria

Chile

Colombia

Costa Rica

Croatia

Cyprus

Czech Republic

Denmark

Dom Rep

ECA

Egypt

Estonia

Fiji

Georgia

Greece

Guatemala

Honduras

Hungry

Italy

Jordan

Kazakhstan

Kuwait

Latvia

Lithuania

Netherlands

New Zealand

Palestine

Papua New Guinea

Peru

Philippines

Poland

Qatar

Seychelles

South Africa

South Sudan

Switzerland

Tajikistan

Tanzania

Turkey

United Kingdom

USA

1- Does your SAI have:a. quality control system in

place:

98% …

2% No

1- Does your SAI have:b. quality assurance system

in place:

74% …

26% …

ISSAIs, CODE OF

CONDUCT. SAI-

PMF, manuals

2. What is the scope of your SAI’s

quality control and quality

assurance systems?

31%Reflected in all stages of the audit

60%Reflected in all stages of the audit processes and institutional processes

8%new law to establish intrnal control for quality control

3. What is the regulatory

framework (law, guideline,

procedure, standardized forms,

ISSAI) that regulates the

quality control system in your

SAI?

65%Establishment law and standards issued by professional bodies(as well as policies and manuals)

29%

4%new law to establish intrnal control for quality control. Or work is in progress to establish quality control policies and manual.

2%Has not any sub-legal act refer to the regulation the quality control system.

4. In terms of organizational structure and level of

responsibilities related to the quality control system:a. What is the organizational structure of the unit(s) devoted

to such system within your SAI?

13%Designated unit but it is not directly reporting to the highest level of authority.

27%Directly reporting to the highest level of authority.

13%New eatablishment

30%No designated unit but it is controlled through work processes

27%Not Directly reporting to the highest level of authority.

4- In terms of organizational structure and level of responsibilities

related to the quality control system:b. What procedures has your SAI used to implement a clear assignment

of authority and responsibilities level (hierarchical scheme) to its

personnel?

2%Responsibility is delegated to senior officers with relevant audit experience

7%New eatablishment

2%Auditors General are appointed by the President.

89%Resposibility is defined among different levels in SAI (from general auditor to audit team) by rules, manuals, job discription

5. To which extent could your SAI

implement “ISSAI 40 – Quality

Control for SAIs” and “ISSAI 1220

– Quality Control for an Audit of

Financial Statements” considering

its mandate, structure, risks and

the kind of work that it does? If it

is not possible, what quality

control measures has your SAI

implemented?

52%Both Implmented

23%Only ISSAI 40

2%Only ISSAI 1220

16%In Process

2%Not Implemented

5%Applying consistent quality standards.

98% Yes

2% No 6- Has your SAI developed any standards, policies

and/or procedures to ensure:a) That all the audit work carried out is subject to

review –including review of the audit plan, working

papers and the work of the team, and regular

monitoring of the progress of the audit by relevant

levels of management or an external opinion

6- Has your SAI developed any standards,

policies and/or procedures to ensure:b) That when difficult or contentious

issues arise, the SAI will resort to

technical experts to help solving such

issues, as appropriate

[Through external advisory support].

87% Yes

13% No

6- Has your SAI developed any standards, policies

and/or procedures to ensure:c) That any difference of opinion within the SAI is

clearly documented and resolved before a report is

issued.

[Through the Audit Board and Audit Methodology

Committee].

80% Yes

20% NO

6- Has your SAI developed any standards,

policies and/or procedures to ensure:d) That your SAI acknowledges the

importance of quality control reviews of

its audits and that the issues brought

forth are resolved in a satisfactory

manner before issuing a report.

89% yes

11% No

6- Has your SAI developed any standards,

policies and/or procedures to ensure:e) The corresponding approval to issue a

report.96% yes

4% No

6- Has your SAI developed any

standards, policies and/or

procedures to ensure:

f) An internal culture that acknowledges that quality is essential in all jobs and at the stages of the audit

process.

91% yes

9% No

7- What standards, policies and procedures

has your SAI established and implemented

to identify, analyze and mitigate the risks

(i.e. internal, external, inherent and/or

control risks):

a. To ethic That can affect quality in the

execution of the SAI’s work conduct within

the institution, and/or

b. That can affect quality in the execution of the

SAI’s work?

Answers:

• Code of Ethics

• self-declarations

• rotation of auditors

• ANAO policy on Professional and Ethical Requirements, and

the Australian Public Service Code of Conduct

• HR Policy.

• Performance Management Procedures.

• The NAO professional code of conduct is in-progress as part

of NAO Strategy (2016-2019)

• staff regulations

• Independence Forms and Oath of Secrecy

• Public Service Regulations (PSR)

• Disciplinary control procedures

• Disciplinary control procedures 4) manual Anti-corruption

plan and citizen service plan

• Policies for the prevention of conflict of interest.

• Laws

• quality control manual

• Adoption of ISSAI 30 on Code of Ethics

8- Does your SAI have a system

in place to ensure that all the

objectives/priorities within

the SAI conform to quality? If

so, how does it work? 86% Yes

9% No

5% In Process

9- In case your SAI has jurisdictional

activities, describe the specific

quality control system put in place

to ensure the highest quality level

of investigations and judgments.

16% Yes

84% No

10- How does your SAI elaborate, disseminate, implement

and update its Code of Ethics? In case that your SAI does

not have one, please explain why and when it will be

elaborated?

Answers:

• shared with all staff and every audit staff needs to sign and submit a self-declaration

• implement and disseminate the code of ethics through various ANAO policies

• Code of Ethics disseminated through our website, intranet

• Code of Ethics reviewed annually with staff

• All the new recruits have to undergo minimum of two-week induction program

• Code of Ethics distribution through brochures and online courses

• The code of ethics is disseminated through activities planned annually through talks,

campaigns in the media, public ethics courses and the figure of an official in each unit that

acts as an ethical leader, called PILE.

• code of ethics was made and updated according to the requirements of the ISSAIs

• The code of ethics for auditors are written, implemented and updated by the Court

11-What policies and procedures has your SAI

established and applied so that an audit

team, as a whole, possesses the knowledge,

skills and experience necessary to carry out

successfully the audit work?a. Specialties by audit sectors, training, job description, outsourcing, competency

matrix

b. Taken into consideration when creating the audit team

c. Audit guidelines, procedures, manuals, audit plan

d. Guidelines + training

e. Capacity need assessments

f. Only in financial audit, yet to be implemented in performance and compliance

auditing

g. Audit manuals and guidelines, Competency matrix, training

h. In development process

i. To the extent quality system is implemented

2%

21%

12%

47%

2%

2%

2%

9%

2%

12- Does your SAI have a training

center? If your answer is

affirmative:

21% Yes

79% No

12- Does your SAI have a training center? If your answer is affirmative: a. What role does this training center play in the implementation process of the SAI’s

Quality Management System?

a. Training

b. in house training

c. Identifies Needs

d. Specialized training

e. Organized by Afrosai E

f. Conducts Seminars and case studies

g. On Job Training

h. In Process

7%

15%

59%

3%

4%

4%4%

4%

96% Yes

4% NO

12- Does your SAI have a training

center? If your answer is

affirmative: b. Has your SAI established any procedures for

selecting staff to participate in trainings

(internal or external) and obtain professional

qualifications or continue to keep them up to

date and relevant?

13- Are your SAI's organization

and processes certified by

any international quality

standard (such as ISO 9001)?

If so, which parts or

processes and since when?

11% In process

73% No

1% Yes

14% Other

14- Is there any specific software (technical

resources) that your SAI uses for its Quality

Management System with the aim of securing

quality control and quality assurance?

28%Audit Management Software is used

9%Audit Software is used

12%The Software (TeamMate) is used

24%The Software (TeamMate) is used

28%There isnt a spesific software system

15- Does your SAI have and apply any

monitoring process to assure that policies

and procedures related to its quality

control system are relevant, adequate and

operating effectively?

4%The Institution applies, institutional self-evaluation

4%Monitoring done by the internal Audit department

7%There is a (division / team) for quality assesment

4%Quality assesment done in cooperation between departments

56%There is a (division / team) for quality assesment

2%There is no specific quality assessment team

22%There is no specific quality assessment team, but there are some monitoring procedures that are being conducted

16- Does your SAI have policies and procedures designed and

in place to carry out its audits and other work in

accordance with relevant standards and applicable legal

and regulatory requirements that include:

a. Matters relevant to promote consistency in the

quality of the work performed.

Answers:

Through:• Audit Board and Methodology

Committee

• software with mandatory procedures

and templates for completion

• Audit procedures manual, HR policy

and periodic performance

management review

• Supervisor of Audits

• Quality Control and assurance system

• Audit Regulation

• audit planning document that has

been subject to review

• Central Departments and Audit

Accounts Control Departments

• Policies in ISSAI 40

• TeamMate Auditing Software

89% Yes

11% No

16. Does your SAI have policies and procedures

designed and in place to carry out its audits

and other work in accordance with relevant

standards and applicable legal and regulatory

requirements that include:

b. Supervision responsibilities

13%SAI PMF Review

14%external Review

32%Internal Review

31%Peer Review

10% No

98% Yes

2% No

What kind of internal andexternal review (SAI PMF, ISO9001, peer review, etc.) it hasundergone lately?

16. Does your SAI have policies andprocedures designed and in placeto carry out its audits and otherwork in accordance with relevantstandards and applicable legal andregulatory requirements thatinclude:

c) Review (self or external assessment) responsibilities (including the SAI’s quality control and quality assurance systems to verify the extent to which goals are accomplished).

91% Yes

9% No

74% Yes

26% No

Corresponding reports are available to the public?

d) List any relevant policies and procedures, including a brief description of them, established to carry out its audits (corresponding documentation might be requested afterwards)

Answers:

o The Audit Manual

o policies and guidance

o Finance and Audit Reform

o Periodic publications and books

and decisions of the President.

o SAI regulations.

17. Does your SAI draft

progress reports

concerning its quality

control work, including

deficiencies and

recommendations for

remedy?

41% Don’t progress reports concerning its quality control work

2% Follow up by Management

57% Progress reports concerning its quality control work

18. Does your SAI have indicators to measure

quality management? If so, which ones are

they and how frequently they are applied

and reviewed?

18%No indicators to measure quality management

16% Procedures have been established for determining indicators to measure quality

67%The quality indicators are applied

19- What results has your SAI

obtained with the implementation

of quality management, in terms

of the SAI’s contribution towards:

a. Strengthening accountability,

transparency and integrity?

Answers:

• Ensuring accountability and transparency in audit work

• contribution to national strategy to combat corruption

• Clear reporting and recommendations

• website published various accountability documents of

high importance for citizens

• Reports are usually regarded as reliable instruments for

decision makers

• an amendment is done on the law of the SAI to have

independency

• Examination of SAI audit reports by Finance and Public

Accounts Committee

• including oral evidence of the Executive

• including oral evidence of the Executive

19- What results has your SAI obtained with the implementation of quality

management, in terms of the SAI’s contribution towards:

b. Demonstrating its continued relevance (importance) and the value and

benefits to society through high quality outputs?

Answers:

• Contributed to improved public sector accountability and transparency

• Helped improve public sector administration

• informing Parliament on a wide range of matters relating to the performance of the public sector

• Selection of audits that are of public interest

• Through issuing fairness, clarity and objectivity reports on audit work

• implications for the report recommendations on the efficiency and effectiveness of the public sector work.

• Raising the quality of services provided to citizens,

• Preserving the citizens' funds which are managed by public sector departments.

• increased the quantity of revealed violations and deficiencies which are the benefits to society

• Higher reputation and relevance of work performed

• ensure the quality of engagements that resulted in substantial financial and non-financial benefits

19- What results has your SAI obtained with the

implementation of quality management, in terms of the

SAI’s contribution towards:

c. Being a model organization from your key

stakeholders’ perspective? Answers:

• ensure independence and accountability across

all levels of the organization

• better image and institutional reputation

• Set ethical structure and accomplished ethical

values

• Credibility and Confidence

• Reliable instruments for decision makers

• Acting as benchmark for others to follow

• unbiased analyses

• credible recommendations on how to improve

government performance

• Accurate information

20. Has your SAI ever contracted external auditors –

either external auditors contracted to audit public

institutions on behalf of the SAI or to audit the SAI

itself–? If so, does it have a quality control system

that ensures the quality of their audit work?

9%External auditors may be used to audit public institutions or to audit SAI itself

43%External auditors may be used to audit public institutions

17% External auditors may be used to audit SAI itself

30% No

12th WGVBS meeting

analysis of the responses

drafting of the guidance material

“The Implementation of Quality Control in the Audit Process”.

Next Step