1. International Standards of Supreme Audit Institutions (ISSAIs) Jennifer Thomson Director OPSPF & Chief Financial Management Officer World Bank

2. Overview WB Goals Significance of ISSAIs WB Support Stakeholder Expectations 2

3. World Bank Group Goals People living with less than $1.25 a day to fall to less than 3% globally by 2030 End Extreme Poverty Foster income growth of the bottom 40% of the population in every country Promote Shared Prosperity In an economically, socially and environmentally sustainable way 3

4. PlanningBudgeting Budget execution AccountingReporting Auditing Public oversight Effective & Efficient Management of Public Resources Enhanced Governance – Transparency & Accountability Quality PFM is needed …. 4

5. Impacts of Quality PFM & Accountability Stronger, more accountable & transparent public finance institutions Stronger & more capable oversight functions of government, ensuring accountability for public resources Enhanced aid effectiveness delivering sustainable development results Better informed public who can demand better management of public funds 5

6. Significance of ISSAIs 6

7. Importance of Public Sector Auditing Provides independent and reliable information to legislatures, oversight bodies, those charged with governance and the public, on the management of public funds Enhances confidence of users by providing information, and independent / objective assessments on deviations from accepted standards or principles of good governance 7

8. INTOSAI Strategic Plan International Standards of Supreme Audit Institutions (ISSAIs)8 Goal 1: Accountability and Professional Standards Promote strong, independent, and multidisciplinary SAIs and encourage good governance by:  providing and maintaining International Standards of Supreme Audit Institutions (ISSAIs)  contributing to the development and adoption of appropriate and effective professional standards

9. Significance of ISSAIs 9 ISSAIs Credible audit standards Safeguard SAI’s independence Enhance SAI’s performance & professionalism Raise audit quality & promote consistency in auditing Guide expectations of public sector audit Promote understanding, credibility & confidence in public sector audits Provide a common language for public sector auditing Strengthen accountability & credibility of SAIs Benchmark for capacity development of SAIs

10. WB Support For Public Auditing Standards 10

11. Promoting Global Auditing Standards 11 Engaging in global partnerships on high-quality standards Sharing information among donors and partners Supporting regional & international professional networks Promoting adoption & implementation of international standards Strengthening & increasing access to international standards Encouraging developing nations’ inputs to setting global standards

12. WB Support 12 Recipient – Financial Audit Subcommittee of PSC / Swedish National Audit Office Objectives - Develop, maintain, and disseminate guidelines for the audit of financial statements in the public sector and incorporate public sector considerations into the ISAs DGF Grant – Public Sector Audit Standards Development Recipient – IDI Objectives - Promote accessibility and application of the ISSAIs with a focus on financial audit standards and to develop a tool for measuring implementation of ISSAIs by SAIs DGF Grant – ISSAI rollout

13. ISSAI Development and Roll-out: Accomplishments To-Date International Standards of Supreme Audit Institutions (ISSAIs)13 ISSAI certification program designed and rolled out Operating network of ISSAI experts established through iCAT for financial, compliance and performance audit ISSAI handbooks in EnglishE-learnings courses available ISSAI facilitators trained and certified for financial and performance audit Draft SAI Performance Measurement Framework being piloted

14. Stakeholder Expectations For Public Auditing Standards 14

15. Who are the Stakeholders

16. Expectations SAIs Promote effectiveness, accountability and transparency fro sustainable development Deliver timely reports accessible to the public Carry out quality comprehensive audits of public funds and service delivery SAIs should perform their duties independently INTOSAI – Lima Declaration and Mexico Declaration SAI Independence (2007) UN General Assembly Resolution A/66/209 (December 2011)

17. Standard Setting by INTOSAI 17 Promote strong, independent & multidisciplinary SAIs and encourage good governance Promote public sector auditing & good auditing practices Set appropriate relevant standards ROLE Identify and address high priority public sector auditing standards needs Establish robust process for standard setting Issue & maintain ISSAI Contribute to adoption of professional standards HOW

18. Standard Setting 18 Technical quality Good governance and due diligence in developing & approving standards Proper authorizing processes Consultation, take into account diversity of views, contexts, circumstances Acceptance by SAIs and wider stakeholders Monitor & Support Implementation Communicate Standards

19. Challenges 19 Maintaining high quality standard setting Adoption & Implementation of ISSAIs by SAIs Supporting ISSAI implementation Raising awareness and educating legislators, users and other key stakeholders

20. Summary International Standards of Supreme Audit Institutions (ISSAIs)20  ISSAIs are a key in establishing credibility of and confidence in public sector audits  WB and donor community have provided support and will continue to assist ISSAI development and implementation  The expectations of WB and donor community are: a robust standard setting process, standards that address public auditing needs, support to SAIs in execution of ISSAIs and lessons learning based on implementation experience