1. Development and Convergence of Auditing Standards and Methodology EUROSAI Seminar on Financial Audit Standards October 2008 Deputy Director General Kelly Ånerud Technical Advisor, IAASB

2. 2 INTOSAI’s Professional Standards Committee INTOSAI Professional Standards Committee (Denmark) INCOSAI INTOSAI Governing Board Accounting Standards & Reporting (Canada) Internal control Standards (Belgium) Performance Audit (Brazil) Compliance Audit (Norway) Financial Audit Guidelines (Sweden)

3. 3 INTOSAIs Framework of Standards International Standards for Supreme Audit Institutions (ISSAI) DescriptionDocuments Founding PrinciplesLima Declaration Prerequisites for the Functioning of SAIs Code of Ethics Independence Fundamental Auditing Principles Auditing Standards Auditing GuidelinesFinancial audit Compliance audit Performance audit Guidance for Good Governance (GOV) Guidance on Internal Control Standards Guidance on Accounting Standards www.issai.org

4. 4 International Standards I nternational S tandard on A uditing P ractice N ote + I nternational S tandards of S upreme A udit I nstitutions =

5. 5 Development of Standards and Guidelines INTOSAI & IFAC INTOSAI Professional Standards Committee INCOSAI INTOSAI Governing Board Accounting Standards & Reporting Internal control Standards Performance Audit Compliance Audit Financial Audit Guidelines Focus Group Project Director & Project Secretariat Reference Panel Issues paper First read Exposure draft Review of comments Final ISA PSC IAASB INTOSAI ”Practice Note” INTOSAI- nominated member & TA

6. 6 IAASB’s Clarity Project Based on findings in IFAC report from 2004 – ”Rebuilding Public Confidence in Financial Reporting” EU’s need for international auditing standards All ISAs redrafted based on Clarity drafting conventions New structure: Introduction Objective Requirements (use of ’shall’) Application Material (Definitions if necessary) Drafting techniques (bullet lists, considerations for SMEs and public sector entities) INTOSAI’s Clarity Review Group Clarity - 2008 INTOSAI - 2010

7. 7 Communication with stakeholders Audit Standard Setting - Value Circle

8. 8 List of Acronyms CAG – IAASB’s Consultative Advisory Group CAS – INTOSAI’s Compliance Audit Subcommittee COSO – Committee of Sponsoring Organizations of the Treadway Commission (internal control framework) FAS – INTOSAI’s Financial Audit Guidelines Subcommittee IAASB – International Auditing and Assurance Standards Board IASB – International Accounting Standards Board IC – Internal Control IFAC – International Federation of Accountants INCOSAI –INTOSAI’s Congress – held every 3 years INTOSAI – International Organization of Supreme Audit Institutions ISA – International Standard on Auditing ISQC – International Standard on Quality Control ISSAI – International Standards for Supreme Audit Institutions PAS – INTOSAI’s Performance Audit Subcommittee PCAOB – Public Company Accounting Oversight Board PN – Practice Note PSC – INTOSAI’s Professional Standards Committee SAI – Supreme Audit Institution SET – INTOSAI Special Expert Team SME – Small and medium sized entity