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 66 th 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

INTOSAI CONGRESS The supreme organ composing of all Members. Holds regular meetings once in every three years -chaired by the hosting SAI First was in 1953 in CUBA Next (21 st ) is in CHINA in 2013

INTOSAI CONGRESS I1953 CUBA II1956 BELGIUM III1959 BRAZIL IV1962 AUSTRIA V1965 ISRAEL VI1968 JAPAN VII1971 CANADA VIII1974 SPAIN IX1977 PERU

X1980KENYA XI1983PHILIPPNES XII1986AUSTRALIA XIII1989GERMANY XIV1992U S A XV1995EGYPT XVI1998URUGUAY XVII2001KOREA XVIII2004HUNGARY XIX2007MEXICO XX2010SOUTH AFRICA

LIMA DECLARATION (PERU 1977)- purpose of audit Concept of audit is inherent in public financial administration because management of public funds represents a trust. Audit is not an end in itself but an indispensable part of a regulatory system whose aim is to ___ reveal deviations/ violations of the principles of legality, efficiency, effectiveness ______ early enough to make it possible to take corrective action in individual cases, to make those accountable accept responsibility, to obtain compensation, or to take steps to prevent--or at least render more difficult--such breaches.

LIMA DECLARATION 1977 Independence of Supreme Audit Institution Relationship to Parliament, Government, Administration Power of Supreme Audit Institution Audit Powers of Supreme Audit Institution Reporting

(1998 URUGUAY) The Code of Ethics statement of values and principles guiding the daily work of the auditors. Integrity, impartiality, objectivity etc (2004-HUNGARY-BUDAPEST) Auditing Standards at high level - postulates and principles for carrying out the audit work Basic Principles, General Standards, Field Standards, Reporting Standards

( 2007 MEXICO ) - MEXICO DECLARATION The existence of an appropriate and effective constitutional/statutory/legal framework Independence of SAI heads and members – legal immunity Broad mandate and full discretion Adopted Eight Core Principles which flow from the Lima Declaration and decisions of subsequent Congresses as essential requirements of proper public sector auditing, unrestricted access to information (records), financial autonomy etc

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

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

International Standards of Supreme Audit Institutions ISSAIs इसाईस INTOSAI

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

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

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

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

Guidance on Good Governance ISSAI 9100 to 9199: Internal controls, Risk Management 6 standards in this series ISSAI 9200 to 9299: Accounting Standards 5 standards in this series

Why standards? Why do we need Auditing Standards? Standards help to ensure that products and services live up to your expectations (users) safe, reliable and of good quality Examples – Accounting or Financial Reporting Standards ( by Government for tax purpose, by shareholders/investors )

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

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

our audit manuals were standards First edition of Defence Audit Manual 1922 First edition of P&T Audit Manual 1928 ** First edition of Railway Audit Manual 1932 Revenue Audit Manuals 1961 (Customs earlier) First edition of MSO 1963 (compliation) First ed of Commercial Audit Manual 1974 Manual of Audit of Autonomous Bodies 1983 Performance Audit Manual, Financial Attest

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 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 ISSAI 100: Fundamental Principles of 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