ECA Quality Control Arrangements Bogna Kuczynska, Principal Manager May 2019

The ECA our organisation and products

Organisation of ECA: five Audit Chambers Presidency Corporate strategy, reporting, planning and communication Cooperation with other SAIs Inter-institutional relations Secretariat- General Human resources, finance and general services Information, workplace and innovation Translation and language services 28 Members 28 Members Legal matters Audit Quality Control Committee (AQCC) Internal audit Chamber I Sustainable use of natural resources Chamber II Investment for cohesion, growth and inclusion Chamber III External action, security and justice Chamber IV Regulation of markets and competitive economy Chamber V Financing and administering the Union Annual Report Administrative Committee

Selected audits (special reports) Statement of assurance (SoA) ECA: Types of audit Selected audits (special reports) Financial audit Compliance audit Performance audit Reliability of the annual consolidated accounts of the European Union Reliability of transactions including the annual consolidated accounts of the European Union Soundness of financial management of European Union spending Statement of assurance (SoA) (annual reports) Regularity of transactions including the annual consolidated accounts of the European Union

Other audit products Specific annual reports on EU agencies and bodies. Opinions on new or revised rules and regulations with financial impact done at request of another EU institution Review products: Landscape reviews analysing selected areas covering one or more EU policies Briefing papers: address more focused topics, and are therefore narrower in scope, shorter in length and quicker in execution Rapid case reviews: present and establish facts surrounding very focused specific issues or problems

ECA audit quality framework

We all work towards ensuring quality Auditor Due skill and care Evidence Documentation Head of Task & Principal manger Direction Supervision Review Chamber Director quality control system in place and operating effectively EQCR reviews on behalf of the Chamber Reporting member Examines and sends for approval planning documents and draft reports Chamber Approves planning documents and reports Quality control review Audit Quality Control Committee Chamber V Audit support Manuals, guidance Directorate for Audit Quality Control Chamber V Directorate

The ECA’s audit quality management framework Applies to: Performance, Compliance and Financial audits, Opinions, Review products Different types of measures Manuals & Guidelines Quality measures Quality control Engagement quality control review (EQCR) Supervision and review Quality assurance

Quality measures in life of a SoA audit Regularity of the underlying transactions & reliability of accounts Endorsed in vertical CH, adopted in CHV Audit preparation Audit Plan Examination Clearing letters Reporting Supervision & review by line management, including the Reporting member EQCR EQCR reviewer -> Director Review of APs & findings CHV coordinator Review by member for AR CHV -> Member for AR Endorsed in vertical CH, adopted in CHV Reporting Draft report Adversarial procedure Final report Publication Supervision & review Chamber EQCR EQCR reviewer -> Director CHV review CHV -> Member for AR CHV EQCR CHV -> Member for AR + Review by DQC Final report Quality assurance

Quality measures in life of a performance audit Performance audit, opinion, review product Audit preparation Audit Plan Examination Clearing letters Reporting Supervision & review by line management, including the Reporting member EQCR EQCR reviewer -> Director Review by AQCC member DQC -> AQCC member Reporting Draft Report Adversarial procedure Final Report Publication Supervision & review Chamber EQCR - substance EQCR reviewer -> Director Review by AQCC member DQC -> AQCC member DQC EQCR – presentation DQC -> AQCC member Final report Quality assurance

Supervision and review Responsibility of line management Supervision Review Monitoring task progress Capabilities and competencies of audit team Resolving significant matters Work in line with manuals, standards and laws Evidence based and documented conclusions Achievement of audit objectives Responsibilities - set out in the planning document (APM) Documentation.

EQCR – Engagement quality control review What? – Planning documents, Audited transactions, Draft reports Who? Competent staff outside audit team When? – Before approval by top management (Chamber) How? Review/objective evaluation of significant judgements & conclusions Checklists

ECA quality assurance objectives and recent tasks

Quality assurance Aims give reasonable assurance on adherence to professional standards, audit manuals, quality control procedures contribute towards the development and improvement of the ECA’s working practices, outputs, quality control system (identifying good practice, inadequate quality and corrective action) make the ECA's future audit work more effective and/or efficient Implementation Quality assurance tasks approved by AQCC annually Done by DQC staff Reporting to AQCC

Quality assurance strategic plan (2017-2019) Tasks finalised in 2017: Examination of consistency of messages in our reports Tasks finalised in 2018: Review of compliance with detailed ISSAI requirements for performance audits (PA iCATs) Stocktaking of quality control arrangements for performance audits Review of compliance with detailed ISSAI requirements for compliance audits (CA iCATs) Tasks (to be) finalised in 2019: Assessment of audit clearing process Use of time and resources in selected audits PMF assessment Review of compliance with detailed ISSAI requirements financial audits (FA iCATs)