REVIEW AND QUALITY CONTROL DAY 7 SESSION NO.3 (THEORY) BASED ON CHAPTER 7 PERFORMANCE AUDITING GUIDELINES RTI, MUMBAI / CH 7

Learning Objectives In the previous session we discussed : Structure of supervision Responsibility of the supervisory officer & the audit officer Super vision by audit officer Progress Reporting Supervision and control during reporting process  RTI, MUMBAI / CH 7

Learning Objectives In this session we will discuss : Review Quality Control Quality Control procedure Quality Control System Key quality control and assurance questions Quality Assurance for supervision and review RTI, MUMBAI / CH 7

Review All audit work should be reviewed by a senior member of the audit staff before the audit opinions or reports are finalised. It should be ensured that: All evaluations and conclusions are soundly based and are supported by competent, relevant and reasonable audit evidence as the foundation for the final audit opinion or report; RTI, MUMBAI / CH 7

Cont… All errors, deficiencies and unusual matters have been properly identified, documented and either satisfactorily resolved or brought to the attention of a more senior SAI officer(s); and Changes and improvements necessary to the conduct of future audits are identified, recorded and taken into account in later audit plans and in staff development activities. A review ensures involvement of higher levels of management with the audit process and provides an assurance that the work has been carried out as per the standards and guidelines. RTI, MUMBAI / CH 7

Cont… The review of the performance audit works is carried out at each stage of the performance audit cycle as under: by the audit manager on concurrent basis when the team members conclude a particular stage in the field work; by group supervisory officer at the time of preparation of discussion papers, audit observations and field audit report; RTI, MUMBAI / CH 7

Cont… by the Accountant General at the time of preparation of field audit reports and draft audit report and by SAI top management during the mid-term appraisals and workshops; and by SAI top management while evaluating the draft performance audit report and quality checks before approval of the Comptroller and Auditor General of India. RTI, MUMBAI / CH 7

Quality control High quality of performance audit is established if it can be demonstrated that audit findings, conclusions and recommendations are warranted and fully supported by good quality evidence, analysis and supervision. RTI, MUMBAI / CH 7

Quality control procedure The objectives of quality control procedures are: professional competence; professional independence; supervision and delineation of responsibilities for audit; guidance and assistance; clear understanding of quality control system and accountability by the audit staff; feedback and monitoring system; and generation of error signals. RTI, MUMBAI / CH 7

Cont… clear understanding of quality control system and accountability by the audit staff; feedback and monitoring system; and generation of error signals. RTI, MUMBAI / CH 7

Quality control system strategic/perspective/operational planning – the principles governing the planning, data/information forming the basis of planning and the quality of the detailed process of planning; ensuring the quality of each assignment evolved against the Auditing Standards, work procedures, skill and knowledge of staff, documentation and reporting; evaluating the intended outcome of the performance audit right job done the right way provides the best opportunity to get the desired results; quality checks by the supervisory officer, Accountant General and by SAI top management throughout the performance audit cycle generally and before the approval of the final product (audit report) in particular; RTI, MUMBAI / CH 7

Cont… top managements’ involvement with ensuring quality by providing guidance on strategic planning, reviewing planning procedures and approving them and evaluating progress; post audit internal quality reviews carried out by the Accountants General to satisfy that the quality control system in place has resulted in consistent quality of performance audit; and\ post audit quality review on selective basis by SAI top management to satisfy that the field audit offices apply the quality standards consistently. RTI, MUMBAI / CH 7

Key quality control and assurance questions Some of the more important questions and answers in the context of the quality of the performance audits are as follows: Am I doing the right work? Strategic planning and annual operational plans in pursuit of the strategic goals and strategic objectives, and risk and materiality based planning, etc.  Am I doing the job right? Detailed procedure for implementation guidelines, field audit procedures, evidence gathering, evidence analysis and evidence testing methods, standards on reporting process, etc.  RTI, MUMBAI / CH 7

Cont… Am I getting the results right? Value addition through performance audit through impact evaluation and follow-up procedures.  Does my organisation perform consistently high quality of work as a matter of habit and routine? Auditing Standards, organisational goals and objectives, consistent application of quality checks, training and skill development, assessment of attainment of strategic goals and objectives, technical inspections and peer review and relentless evolution of the principles and techniques of performance audit and development of the best practices within SAI India, etc. RTI, MUMBAI / CH 7

Quality Assurance for supervision and review Quality assurance in supervision and review as well as in the quality control is ensured with the help of the following: adherence to Auditing Standards and guidelines; defined structure and system of supervision, review and quality control; strict conformity to the prescribed supervision, review and quality control system; periodic reporting and monitoring during performance audit process; and peer review and technical supervision review RTI, MUMBAI / CH 7

Session Summary In this session we discussed: Review Quality control & quality control procedures  Quality control system  Key quality control and assurance questions  Quality assurance for supervision and review RTI, MUMBAI / CH 7