1. Joint Seminar
Brussels 2017

2. The Accounts Chamber of the Russian Federation
Methodological approaches to the Assessment and Performance Review of Internal Audit (on the basis of the standard of external state audit developed in the Accounts Chamber of the Russian Federation)
T.Ivanova, E.Vasilieva

3. Legislative and regulatory framework of Internal Audit
The Accounts Chamber of the Russian Federation
Legislative and regulatory framework of Internal Audit
Budget Code of the Russian Federation
Law on the Accounts Chamber of the Russian Federation
INTOSAI and
Institute of Internal Auditors standards
Normative documents of the Government of the Russian Federation
The standard of external state audit “The Assessment and Performance Review of
Internal Audit”

4. The Accounts Chamber of the Russian Federation
Internal Audit - activity carried out by the chief administrators (administrators) of budgetary funds on the basis of functional independence with the aim of:
Assessment of the reliability of internal financial control and preparation of recommendations to improve its effectiveness;
Confirmation of the reliability of budgetary reporting and compliance with the procedure for budget accounting of methodology and budget accounting standards established by the Ministry of Finance of the Russian Federation;
Preparation of proposals on increasing of the economy and effectiveness of the usage of the budgetary funds.

5. The Accounts Chamber of the Russian Federation
The Subject of Internal Audit is a structural unit and (or) an authorized official, an employee of the chief administrator (administrators) of budgetary funds, who has the authority to perform internal audit and carry out their activities on the basis of functional independence.
The Objects of Internal Audit are the structural subdivisions of the chief administrator (administrators) of budget funds, subordinate administrators of budgetary funds and recipients of budgetary funds.
The Subject of Assessment and Performance Review of Internal Audit is the activity of the subject of internal audit of the relevant chief administrator (administrators) of budgetary funds.

6. The Accounts Chamber of the Russian Federation
Main objectives of Internal Audit:
Assessment of the state of Internal Audit and determination of the appropriateness of using its results when planning the control and expert-analytical activities of the Accounts Chamber in the relevant chief administrator of budget funds;
Review of the compliance of Internal Audit with the requirements of standards, rules, guidelines and other methodological documents regulating the conduct of Internal Audit (including the international standards) by the subject;
Identification of violations and deficiencies in the work organization and reporting of Internal Audit subject, as well as development of recommendations for improving of Internal Audit.

7. The Assessment and Performance Review of Internal Audit
I STAGE
Assessment of Internal Audit
organization
II STAGE
Analysis of concrete results
of Internal Audit
General conclusion about the effectiveness of Internal Audit

8. I STAGE Assessment of Internal Audit organization
List of the questions
I STAGE
1. Manag ement and Structu re
1 …
2 …
3 … …
7 …
2. Planni ng of Interna l Audit 1… 2… 3… 7…
3. Organization of Internal Audit implementation
4. Reporting System

9. I STAGE Assessment of Internal Audit organization
  Management and Structure of Internal Audit
Choose the correct answer() :
1.1. Existence of a legal act about the organization of internal audit, which ensures the independence of the subject of internal audit and determines a unified approach to the procedure for the implementation of internal audit
___1 Absence of a legal act on the organization of internal audit.
___2 Presence of a legal act of the chief administrator (administrator) of budgetary funds on the organization of internal audit, which does not ensure the independence of the subject of internal audit and (or) does not contain a unified approach to the development of a procedure for the implementation of internal audit. ….
 7 The presence of a legal act of the chief administrator (administrator) of budgetary funds on the organization of internal audit, which ensures the independence of the subject of internal audit and determines a unified approach to the development of procedures for the implementation of internal audit.
1.2. Providing of the distribution of authority and responsibility for the organization and implementation of internal audit
__1 Powers for the organization and implementation of internal audit are not fixed.
__2 Powers for the organization and implementation of internal audit are fixed in separate official regulations (instructions) along with the basic functions (duties).
 7 …

10. I STAGE Assessment of Internal Audit organization
Management
and Structure
Planning of Internal Audit
Organization of Internal Audit implementation
Reporting System
Integral assessment of Internal Audit Organization
… … / 28 = 5 1 2 … 7 8 9 14 15 16 21 22 23 28
1.1
1.2
1.7
2.1
2.2
2.7
3.1
3.2
3.7
4.1
4.2
4.7
Chosen answers 5 6 4

11. II STAGE Analysis of concrete results of Internal Audit
List of the questions
II STAGE
1. Evalua tion of the reliabil ity
of interna l control
1 …
2 …
3 …
4 …
2. Confir mation of the reliabil ity of budget ary reporti ng 2… 3… … 7…
3. Proposals to improve economy
and efficiency 1… 4…
4. Absence of violations in the audit materials of the Accounts Chamber, which would not have been revealed by internal audit

12. II STAGE Analysis of concrete results of Internal Audit
Evaluation of the reliability
of internal control
Confirmation of the reliability of budgetary reporting
Proposals to improve economy
and efficiency
Absence of violations in the audit materials of the Accounts Chamber, which would not have been revealed by internal audit
Integral assessment of specific results of the Internal Audit
( … … / 16 = 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1.1
1.2
1.3
1.4
2.1
2.2
2.3
2.4
3.1
3.2
3.3
3.4
4.1
4.2
4.3
4.4
Chosen answers …

13. MATRIX OF ESTIMATION OF EFFICIENCY OF INTERNAL AUDIT
Integral assessment of Internal Audit Organization
I STAGE
Integral assessment of specific results of Internal Audit
II STAGE
LOW
MEDIUM
HIGH Х
EFFICIENCY LOW
EFFICIENCY MEDIUM
EFFICIENCY HIGH