Progress Report to the PSC Steering Committee INTOSAI PSC Subcommittee on Internal Control Standards SAI of Poland (NIK) June 2011, Wellington

INTOSAI Subcommittee on Internal Control Standards About the Subcommittee 29 members and the IIA 29 members and the IIA New chair since the XX INCOSAI: Supreme Audit Office of Poland (NIK) New chair since the XX INCOSAI: Supreme Audit Office of Poland (NIK) Latest documents developed under the previous chairmanship (SAI of Belgium), adopted by the XX INCOSAI: Latest documents developed under the previous chairmanship (SAI of Belgium), adopted by the XX INCOSAI: - INTOSAI GOV 9140 ”Internal Audit Independence in the Public Sector” - INTOSAI GOV 9150 ”Coordination and Cooperation between SAIs and Internal Auditors in the Public Sector”

INTOSAI Subcommittee on Internal Control Standards Tasks for the years (1) The following 5 tasks were set under the chairmanship of the SAI of Belgium: Task 1: Work out examples of internal control measures, for all internal control objectives (effectiveness, efficiency, ethical standards, compliance with laws and regulations, etc.) and all control components (control environment, risk assessment, control activities, information and communication, monitoring). Task 2: Actively promote the integration of the INTOSAI GOV internal control and risk management conceptualization into the ISSAIs, notably on financial audit, performance audit, compliance audit.

INTOSAI Subcommittee on Internal Control Standards Tasks for the years (2) Task 3: Integrate the Guidelines and the Further Information on risk management. It is preferable to have one single document with risk management as the main concept and internal control regarded as a part of it. Task 4: Prepare a paper concerning reporting on internal control (for example as “in control statements”). A survey could be conducted on that subject in order to establish the extent to which internal control reporting exists, under what forms and what the underlying frames of reference are. Task 5: Monitor and analyze the use of the e-platform both in terms of its utility value and content of the information (trends, topics for future work plans, targeted requests for further information, etc.).

INTOSAI Subcommittee on Internal Control Standards Achievements Takeover of the Subcommittee Chairmanship Takeover of the Subcommittee Chairmanship Elaboration of the Action Plan for Elaboration of the Action Plan for Implementation of the Action Plan for Implementation of the Action Plan for Activities in the international arena Activities in the international arena Activities at the national level Activities at the national level

INTOSAI Subcommittee on Internal Control Standards Takeover of the Subcommittee Chairmanship SAI of Poland took over the Subcommittee Chairmanship at the XX INTOSAI Congress from the SAI of Belgium SAI of Poland took over the Subcommittee Chairmanship at the XX INTOSAI Congress from the SAI of Belgium Bilateral meeting between the former and the new Chairs – February 2011, Warsaw, to discuss: Bilateral meeting between the former and the new Chairs – February 2011, Warsaw, to discuss: - rules and organisation of the Subcommittee’s works - expected results.

INTOSAI Subcommittee on Internal Control Standards Action Plan for March 2011: Draft Action Plan March 2011: Draft Action Plan April 2011: Discussion with Members and the Institute of Internal Auditors April 2011: Discussion with Members and the Institute of Internal Auditors May 2011: Final version of the Action Plan May 2011: Final version of the Action Plan In the Action Plan, for each task information is provided as for:  Input by Subcommittee Members  Results and effects  Task Coordinator  Date of progress revision  Deadline for realisation

INTOSAI Subcommittee on Internal Control Standards Action Plan for : achievements to date As for Task 5: development of the e-platform – Subcommittee Members can access the following documents: Report by the OECD entitled Internal Control and Internal Audit: Ensuring Public Sector Integrity and Accountability Report by the OECD entitled Internal Control and Internal Audit: Ensuring Public Sector Integrity and Accountability Survey analysis released by the IFAC Professional Accountants in Business (PAIB) Committee entitled Global Survey on Risk Management and Internal Control – Results, Analysis, and Proposed Next Steps: it can be potentially used in Task 3. Survey analysis released by the IFAC Professional Accountants in Business (PAIB) Committee entitled Global Survey on Risk Management and Internal Control – Results, Analysis, and Proposed Next Steps: it can be potentially used in Task 3.

INTOSAI Subcommittee on Internal Control Standards Activities in the international arena Participation in a seminar organised by the OECD (Paris, April 2011), dedicated to the challenges faced by Internal Audit in contributing to mitigation of fraud and corruption risks in the public sector Participation in a seminar organised by the OECD (Paris, April 2011), dedicated to the challenges faced by Internal Audit in contributing to mitigation of fraud and corruption risks in the public sector OECD report Internal Control and Internal Audit: Ensuring Public Sector Integrity and Accountability comprises the Internal Control Standards Subcommittee’s approach, and references to the two latest standards: INTOSAI GOV 9140 and INTOSAI GOV OECD report Internal Control and Internal Audit: Ensuring Public Sector Integrity and Accountability comprises the Internal Control Standards Subcommittee’s approach, and references to the two latest standards: INTOSAI GOV 9140 and INTOSAI GOV 9150.

INTOSAI Subcommittee on Internal Control Standards Activities at the national level Translation of INTOSAI GOVs into Polish Translation of INTOSAI GOVs into Polish Plans to disseminate and promote the application of INTOSAI GOVs among public sector managers in Poland (as a good practice) Plans to disseminate and promote the application of INTOSAI GOVs among public sector managers in Poland (as a good practice) Plans to conduct two audits on how internal control standards are used in practice in the public sector in Poland (separately at the governmental and local levels) Plans to conduct two audits on how internal control standards are used in practice in the public sector in Poland (separately at the governmental and local levels)

INTOSAI Subcommittee on Internal Control Standards Thank you very much for your attention.