1. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Internal Audit Manual PEM-PAL Plenary Meeting Zagreb January 26-28, 2011 Jean-Pierre Garitte, CIA, CCSA, CISA, CFE, RFA

2. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Objectives of an internal audit manual l Primary objective l Secondary objectives –Guidance to newcomers –Reliance by other assurance providers –Quality review

3. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Standards on the internal audit manual l The Institute of Internal Auditors –IIA Practice Advisory 2040-1 l INTOSAI l The US Government Accountability Office (GAGAS)

4. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Planning Fundamentals Execution Reporting Quality Improvement Senior Management / Audit Committee External Audit (NAO, AA) CHU Institutions (budget spenders) People Knowledge Tools Internal audit manual framework Planning

5. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Fundamentals l Mission statement l Reference to regulatory framework l Independence l Applicable professional standards l Professional ethics l Due professional care l Interactions with others

6. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Planning l Strategic audit planning l Audit universe l Risk assessment methodology l Annual audit planning l Annual audit budget l Special audit engagements

7. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Execution l Audit engagement planning l Development of audit objectives l Definition of audit scope l Preliminary survey l Audit program l Working papers l Supervision

8. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Reporting l Draft report l Final report l Follow-up of recommendations l Annual audit report l Annual audit opinion / statement of assurance

9. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Quality improvement l Quality program l Key performance indicators l Internal quality assessment l External quality assessment

10. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Planning Fundamentals Execution Reporting Quality Improvement Senior Management / Audit Committee External Audit (NAO, AA) CHU Institutions (budget spenders) People Knowledge Tools Internal audit manual framework Planning

11. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU People l Qualifications l Soft skills l Career planning l Co-sourcing arrangements l Continuing development

12. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Tools l Risk mapping l Sampling l Audit administration l Marketing

13. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Knowledge l File organization l Benchmarking l PEM-PAL

14. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Planning Fundamentals Execution Reporting Quality Improvement Senior Management / Audit Committee External Audit (NAO, AA) CHU Institutions (budget spenders) People Knowledge Tools Internal audit manual framework Planning

15. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Interaction with others l Senior management l Audit committee l External audit –National Audit Office / SAI –Audit Authority l CHU l Budget spenders l Other assurance providers

16. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Questions l Does this skeleton / template for the internal audit manual cover all critical components? l Would this skeleton / template be applicable to other public sector entities (e.g. municipalities)?

17. © OECD SIGMA A joint initiative of the OECD and the European Union, principally financed by the EU Internal Audit Manual PEM-PAL Plenary Meeting Zagreb January 26-28, 2011 Jean-Pierre Garitte, CIA, CCSA, CISA, CFE, RFA