INTOSAI STANDARDS August 2012 “Experientia Mutua Omnibus Proudest” "Mutual experience benefits all"

INTOSAI The International Organisation of Supreme Audit Institutions (INTOSAI) operates as an umbrella organisation for the external government audit community. At present INTOSAI has 190 Full Members and 4 Associated Members. On 22 Dec 2011 the 66th United Nations General Assembly adopted the resolution“ promoting the efficiency, accountability, effectiveness and transparency of public administration by strengthening supreme audit institutions”.

INTOSAI Congress Governing Board, 18 members General Secretariat in Vienna, Austria Regional Groups Committees Working Groups

REGIONAL GROUPS Regional Professional and technical cooperation AFROSAI ARABOSAI – 22 Arabic speaking ASOSAI CAROSAI – Caribbean EUROSAI OLACEFS –Organization of Latin American Caribbean PASAI – Pacific Association

INTOSAI COMMITTEES Professional Standards Committee Standards on Financial Audit, Compliance Audit, Performance Audit, Internal Controls, Quality control Capacity Building Committee Knowledge Sharing Committee Standards on IT Audit, Environmental Auditing, PPP, Privatisation, Economic regulation, Public debt etc Finance & Administration Committee

International Standards of Supreme Audit Institutions ISSAIs इसाईस INTOSAI

ICAI Auditing Standards Standards on Quality Control (SQCs) SQC 1, “Quality Control for Firms that Perform Audit and Reviews of Historical Financial Information, and other Assurance and Related Services Engagements” Audits and Reviews of Historical Financial Information 100-199 Introductory Matters 200-299 General Principles and Responsibilities SA 200 “Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing” SA 210 “Agreeing the Terms of Audit Engagements”

ICAI Auditing Standards 200-299 General Principles and Responsibilities – continued SA 220 “Quality Control for an Audit of Financial Statements” SA 230 “Audit Documentation” SA 240 “The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements” SA 250 “Consideration of Laws and Regulations in an Audit of Financial Statements” SA 260 “Communication with Those Charged with Governance” SA 265 “Communicating Deficiencies in Internal Control to Those Charged With Governance and Management” SA 299 “Responsibility of Joint Auditors”

ICAI Standards 300-499 Risk Assessment and Response to Assessed Risks SA 300 “Planning an Audit of Financial Statements” SA 315 “Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment” SA 320 “Materiality in Planning and Performing an Audit” SA 330 “The Auditor’s Responses to Assessed Risks” SA 402 “Audit Considerations Relating to an Entity Using a Service Organisation” SA 450 “Evaluation of Misstatements Identified During the Audit”

500-599 Audit Evidence SA 500 “Audit Evidence” SA 501 “Audit Evidence—Specific Considerations for Selected Items” SA 505 “External Confirmations” SA 510 “Initial Audit Engagements – Opening Balances” SA 520 “Analytical Procedures” SA 530 “Audit Sampling” SA 540 “Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures” SA 550 “Related Parties” SA 560 “Subsequent Events” SA 570 “Going Concern” SA 580 ”Written Representations”

700-799 Audit Conclusions and Reporting 600-699 Using Work of Others SA 600 (AAS 10), “Using the Work of Another Auditor” SA 610 “Using The Work of Internal Auditors” SA 620 “Using the Work of an Auditor’s Expert” 700-799 Audit Conclusions and Reporting SA 700 “Forming an Opinion and Reporting on Financial Statements SA 705 “Modifications to the Opinion in the Independent Auditor’s Report" SA 706 “Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report" SA 710 “Comparative Information—Corresponding Figures and Comparative Financial Statements” SA 720 The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements”

2000-2699 Standards on Review Engagements (SREs) 800-899 Specialized Areas SA 800 “Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks” SA 805 “Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement” SA 810 “Engagements to Report on Summary Financial Statements” 2000-2699 Standards on Review Engagements (SREs) SRE 2400 “Engagements to Review Financial Statements SRE 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” 3000- 3669 Assurance Engagements Other Than Audits or Reviews of Historical Financial Information 4000-4699 Standards on Related Services (SRSs)

Auditing Standards INDIAN AUDIT AND ACCOUNTS DEPARTMENT 1st Edition 1994 2nd Edition 2002 Comptroller and Auditor General of India

Why auditing standards? Assurance about the quality of audit done to the users of the audit reports Use them as bench mark or measure while doing audit, common frame of reference Standardisation of process and products, uniformity between all the auditors- audits, so that comparison is fair Increases credibility, increase of level of perception – for users

International Standards of Supreme Audit Institutions ISSAIs इसाईस INTOSAI

Level-1: Founding Principles The standards developed by INTOSAI for guiding the Government Audit profession are termed as International Standards of Supreme Audit Institutions (ISSAI). These standards are hierarchically divided into four groups or levels. Level-1: Founding Principles Level-2: Prerequisites for functioning of Supreme Audit Institutions Level-3: Fundamental Auditing Principles Level-4: Auditing Guidelines-Implementation guidelines, specific guidelines

Level 1: Founding principles ISSAI 1 : LIMA Declaration (1977) Level 2: Prerequisites for the Functioning of Supreme Audit Institutions   ISSAI 10 : Mexico Declaration on SAI Independence (1987) ISSAI 11 : INTOSAI Guidelines & Good Practices Related to SAI Independence   ISSAI 20 : Principles of Transparency & Accountability ISSAI 21 : Principles of Transparency - Good Practices  ISSAI 30 : Code of Ethics  ISSAI 40 :  Quality Control for SAIs

Level 3: Fundamental Auditing Principles ISSAI 100: INTOSAI Auditing Standards - Basic Principles      ISSAI 200 : INTOSAI Auditing Standards - General Standards    ISSAI 300: INTOSAI Auditing Standards - Field Standards     ISSAI 400 :INTOSAI Auditing Standards - Reporting Standards

Implementation Guidelines Under 4th level there are three sets of guidelines Implementation Guidelines Specific Guidelines Guidance on Good Governance

ISSAI 1000 to 2999 : Financial Auditing Guidelines Level 4: Implementation Guidelines ISSAI 1000 to 2999 : Financial Auditing Guidelines about 50 standards in this series for example standard 1500 audit evidence; 1530 audit sampling ISSAI 3000 to 3999: Performance Auditing Guidelines 2 standards in this series-3000,3100 ISSAI 4000 to 4999 :Compliance Auditing Guidelines 3 standards in this series-3000,3100

Level 4: Auditing Guidelines - Specific Guidelines on ISSAI 5000 to 5099: Audit of International Institutions ISSAI 5100 to 5199: Environmental Audit ISSAI 5200 to 5299: Audit of Privatisation ISSAI 5300 to 5399: IT-Audit ISSAI 5400 to 5499 :Audit of Public Debt ISSAI 5500 to 5599 : Audit of Disaster related Aid ISSAI 5600 to 5699 :Peer Review Guidelines

Level 3: Fundamental Auditing Principles ISSAI 100: INTOSAI Auditing Standards - Basic Principles      ISSAI 200 : INTOSAI Auditing Standards - General Standards    ISSAI 300: INTOSAI Auditing Standards - Field Standards     ISSAI 400 :INTOSAI Auditing Standards - Reporting Standards In rest of the places the word ‘guidelines’ is used (ISSSAI 10000 to 9299)

Fundamental Auditing Principles - revised ISSAI 100: Fundamental Principles of Public Sector Auditing ISSAI 200: Fundamental Principles of Financial Auditing ISSAI 300: Fundamental Principles of Performance Auditing Compliance Auditing

standards for any audit Auditors-Skills, ethics, independence, objectivity, professional behaviour Exercising professional care, professional scepticism, quality standards during audit Audit involves three parties – auditor, auditee and user- terms of engagement Subject matter to be audited, understanding the entity, audit risk, planning the audit

standards for any audit ..continued Audit objectives Audit criteria Audit procedures (standard does not elaborate the procedures) – review of internal controls- substantive testing (analytical review)

standards for any audit ..continued Materiality, significant deviations Sufficient appropriate audit evidence Audit findings, conclusions Documentation of entire audit process & evidence Reporting -reasonable assurance/ short form Reporting -exception reporting/ long form Discussion in Legislative committees Follow-up

Auditors-Skills, ethics, independence, objectivity, professional behaviour Exercising professional care, professional scepticism, quality standards during audit Audit involves three parties – auditor, auditee and user- terms of engagement Subject matter for audit, understanding the entity, audit risk, planning the audit Audit objectives- Audit criteria Audit procedures (review of controls, substantive testing) Materiality, significant deviations Sufficient appropriate audit evidence Audit findings, conclusions Documentation of entire audit process and evidence Reporting (reasonable assurance-short form report)(exception reporting-long form report)- Discussions in Legislative Committee- Follow up