Performance Audit Subcommittee Project for ISSAI Level 4 review 66th INTOSAI Governing Board Meeting Vienna, November 5-7, 2014

Collaboration PAS-CAS-FAS The review of level 4 highlighted the need for increased coordination among the subcommittees. A common FAS/PAS/CAS collaboration document was prepared and presented to the PSC SC in Manama. It highlighted: Agreed points concerning level 4 review Measures addressing the need for consistency in the ISSAI framework Measures addressing the need for a standard setting process connected with implementation issues

Collaboration PAS-CAS-FAS Agreed points concerning level 4 Review: The need for interpretation guidance (how to interpret and apply the standards at a more operational level). In a sustainable future, level 4 could have a common structure of types of documents containing both authoritative standards and interpretation guidance. The subcommittees plan to develop a common system of cross-references, in order for a SAI to easily detect where and how ISSAIs differ in prescriptions of audit process.

ISSAI Level 4 (PA) - today ISSAI 3000 – Implementation Guidelines for Performance Auditing (2004): presents requirements on PA followed by guidance ISSAI 3100 – Performance Audit Guidelines: key principles (2010): outlines a common understanding of what defines high quality work in PA - Annex to ISSAI 3100: sets out the benefits of introducing PA in an SAI, together with key issues to consider when introducing/maintaining PA

Review of Level 4 (PA) – Objectives Adapt level 4 of ISSAIs to the recently approved ISSAI 100 and ISSAI 300, by ensuring that the PA standard and PA guidelines are fully consistent with the principles in both standards. Provide SAIs with updated guidelines for audits of economy, efficiency and effectiveness based on these principles.

Review of Level 4 (PA) – References Primarily, ISSAIs 100 and 300 Existing PA guidelines (existing ISSAIs 3000 and 3100) PAS five practice papers (Consideration to) comments received during the draft of ISSAI 300 exposure process Other ISSAIs, as ISSAI 1003 – Glossary to financial audit guidelines Documents issued by recognized standard setters

Review of Level 4 (PA) – Expected outcomes New ISSAI 3000, the International Standard for Performance Auditing: requirements for the practice of PA, followed by explanations in order to enhance clarity of the standard New ISSAI 3100 – central concepts for performance audits. New ISSAI 3200 – guidelines for the PA process (planning, conducting and reporting) The possibility of developing guidelines on additional matters is not excluded. This, however, would be the object of another Project.

Review of Level 4 (PA) – Stage of the Project Project phases completed: Draft of the new ISSAI 3000 completed and submitted to two rounds of internal hearing in PAS A new structure and organization for level 4 regarding PA Project phases in progress: Writing of new ISSAI 3100 and 3200, to be posted on PAS Community of Practice for internal hearing. Second internal hearing of ISSAI 3000

Summary of the future ISSAI level 4 (PA) ISSAI 3000 - a concise document, which comprises all requirements for PA auditors ISSAI 3100 – a detailed document, which explains central concepts for PA ISSAI 3200 – a detailed document, which explains how to conduct the PA process ISSAIs 3300-3999 – further topics, as the sustainability of PA function, currently in the appendix of ISSAI 3300 Requirements, definitions and guidelines are in distinct documents Level 4 has a dual nature of authoritative professional standard and guideline

Review of Level 4 (PA) – Timetable 2014 November 28 Drafts of ISSAI 3100 and 3200 are posted on PAS Community of Practice (Moodle) for comments from PAS members December 16 PAS Secretariat sends drafts of ISSAI 3000, 3100 and 3200 to PSC

Review of Level 4 (PA) – Timetable 2015 January 23 PAS members send comments on drafts of ISSAI 3100 and 3200 on Moodle (deadline) February 13 PAS responsible groups post final versions of ISSAI 3100 and 3200 on Moodle PAS members send suggestions for adjustment in ISSAI 3000 (deadline) February 27 PSC Secretariat sends feedback on the draft ISSAIs from CAS and PAS March 6 PAS Secretariat posts final version of draft ISSAI 3000, after final comments from PAS members March 24-25 PAS Meeting, in New Delhi

Review of Level 4 (PA) – Timetable 2015 April 30 PAS Secretariat sends exposure drafts to the PSC Secretariat June (date to be settled) PSC SC approves exposure drafts September-November Exposure drafts posted on www.issai.org for comments from Intosai members Dec 2015/ Feb 2016 Processing of comments by PAS responsible groups

Review of Level 4 (PA) – Timetable 2016 December 2015/ February 2016 Processing of comments by the PAS responsible groups March 31 PAS Secretariat sends endorsement versions to the PSC Secretariat May (date to be settled) PSC SC approves endorsement versions October or November/2016 Intosai Governing Board approves endorsement versions at INCOSAI 2016, in Abu Dhabi

Thank you.