Evaluation of Internal Control Systems – the Irish Experience Andrew Harkness Office of the Comptroller and Auditor General, Ireland

Public Audit Process Financial Accuracy – what was spent? Regularity - was money spent in accordance with Parliaments intentions and authority? Annual audit attestation culminating in Opinion Propriety and value for money – how well was money spent? Discretionary reports to Parliament

Review of Audit Process Focus historically has been more on substantive testing. Recently heavier emphasis on audit efficiency Nowadays increased assurance from testing control. Resulting in a revised financial audit process

Revised Financial Audit Process Risk Based Approach. Understand control systems to identify risks of material error in the accounts. Test Controls Address specific risks of error Audit efficiency decision i.e. reduce substantive testing Obtain control assurance.

Other Control Issues Propriety Issues (e.g. tendering for contracts, late payments, compliance with tax rules for State bodies) Examine relevant controls as part of financial audit process. Focus continues to be on reporting these issues to Parliament.

Recent Developments - Corporate Governance Management state their responsibility for controls Management review annually the effectiveness of the system of financial control. Management publish a statement describing this process in particular the use of Audit committees Internal audit Audit provides ‘negative assurance’ on Management’s Statement.