1. 1 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Report from Workshop No. 1 Systems evaluations and sampling – first audit experiences in 2007-2013 period Ljubljana, 12-13 October 2009 Mr Robert Camilleri Audit Manager Internal Audit and Investigations Division Malta Mr Robert Camilleri Audit Manager Internal Audit and Investigations Division Malta

2. 2 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Presentation - Slovenia Work Performed till mid-2009 3 Compliance Assessments – outsourced 1 Audit Strategy First audit report and opinion (disclaimer) by 31/12/2008 Follow-up of recommendations from compliance assessment reports System audit at the Managing Authority

3. 3 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Presentation - Slovenia Discussion on Annual Control Report and Opinion 31/12/2009 Various Member States’ opinion: Since no expenditure was declared till 2008 and no audits on operations were done by mid-2009, a DISCLAIMER OF OPINION has to be provided (reference was made to ISA) CION’s opinion: Where limited systems audits have been performed, the AA has to provide an opinion, possibly with a SCOPE LIMITATION …. ….. A PRESENTATION LATER ON TODAY

4. 4 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Sampling and small populations – Dutch experience Example on non-statistical sampling First, audit all large items (i.e. greater than materiality) Then, calculate sample size for other items based on results of systems audits

5. 5 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Sampling and small populations – Dutch experience Discussion (General) Definition of error: not in Regulations – CION classifies between serious quantifiable errors having financial impact etc. Disadvantages of MUS: assumes low error rate If there are problems in systems audits, effort should be made to tackle these (impact on audits on operations) There are no miracle solutions for small programmes…. we have to be prepared to do more work compared to large programmes.

6. 6 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Thank you for your attention!