Compliance Audit Subcommittee The history of CAS From 2004 to 2014 XII Annual meeting, Oslo 17th - 18th of September 2014

Where everything started Budapest 10 October 2004 Working group on Compliance Audit

Origins of the committee

An audit A systematic process of objectively obtaining and evaluating evidence to determine whether information or actual conditions conform to established criteria. ISSAI 100 paragraph 18

Public sector auditing telling its own story

Which mean that it: Departs from mandates and the accountability of public sector entities in the use of public resources Is a part of national democratic systems Contributes to good governance

Three Audit types of INTOSAI 7 Financial audit The reliability of financial reporting Performanc e audit Economy Efficiency Effectivenes s Compliance audit Compliance with authorities

Financial Audit Determining whether an entity’s financial information is presented in accordance with the applicable financial reporting and regulatory framework. ISSAI 200 para.4 8

Performance audit As carried out by SAIs, performance auditing is an independent, objective and reliable examination of whether government undertakings, systems, operations, programs, activities or organizations are operating in accordance with the principles of economy, efficiency and effectiveness and whether there is room for improvement. ISSAI 300 para. 9 9

Compliance audit The independent asessment of whether a given subject matter is in compliance with applicable authorities identified as criteria. ISSAI 400 paragraph 12 Meaning: Compliance auditing is performed by assessing whether activities, financial transactions and information are in all material respect, in compliance with the authorities which govern the audited entity. ISSAI 400 para. 12

What are they looking for? Financial audit: Material misstatements in financial statements? Audit objective: Is it in compliance with? Is it economic, efficient and effective? 11 Subject matter

ISSAI 100/400 – elements

PSC INTOSAI Professional Standards Committee The Compliance Audit Guidelines - endorsed by INCOSAI in South Africa 2010  ISSAI General introduction to compliance audit  ISSAI deals with compliance audit performed separately from the audit of financial statements, for example as a separate audit task or related to performance audit  ISSAI deals with compliance audit related to the audit of financial statements Written as consistent, stand-alone documents

Maintenance of ISSAI 4000 series: Project proposal to the PSC steering committee Exposure draft to the PSC steering committee. Endorsement version to the PSC steering committee, the governing board and INCOSAI