1. PSC meeting - Beijing - October 20081 The INTOSAI Compliance Audit Guidelines Presentation of Exposure Drafts ISSAIs 4000, 4100 and 4200

2. PSC meeting - Beijing - October 20082 To develop INTOSAI guidelines for compliance audit that support the audit relating to prevention and detection of fraud, corruption and misuse of public funds, and promote the development of good governance, and accountability and transparency in the public sector. Objective of the INTOSAI Compliance Audit Subcommittee CAS members: Norway (chair), Brazil, Denmark, ECA, India, Lithuania, Mexico, Namibia, Slovakia, Saudi Arabia, Sweden, Tunisia, Ukraine

3. PSC meeting - Beijing - October 20083 The INTOSAI Compliance Audit Guidelines

4. PSC meeting - Beijing - October 20084 Activities since last PSC meeting - 1 Presentation of draft guidelines at PSC meeting in Bahrain – April 2007 PSC decision to expose guidelines (CA as part of FA – ‘old’ ISSAI 4100 only) –Develop additional introductory document (ISSAI 4000) –Develop additional guidelines for CA separate from FA (ISSAI 4200) Draft guidelines (CA as part of FA – ‘old’ ISSAI 4100 only) exposed for comment in INTOSAI – Summer 2007 Translated draft guidelines available at INCOSAI 2007 – Nov 2007 Comments received from over 40 SAIs

5. PSC meeting - Beijing - October 20085 Comments and suggestions for improvement included ie: –Distinguish more precisely between CA related to financial statements and other aspects of CA –Definition of CA consisting of regularity and/or propriety, while keeping the total scope –Concept of reasonable assurance important –Adapt provisions on audit criteria to the divided definition, while keeping less formal criteria and emphasizing the need for suitable criteria –Further elaboration on materiality in a compliance context –Need for guidance on assessment of compliance deviations –Further guidance on reporting considerations including guidance on long form reports –Special considerations for Court of Account SAIs –Need for further application material: Risk assessment considerations Audit procedures Compliance deviations Sample reports Activities since last PSC meeting - 2

6. PSC meeting - Beijing - October 20086 Revision of guidelines based on comments received from respondents (dialogue with certain SAIs, FAS, members of CAREG, IFAC) – Fall 2007/ Winter 2008 Presentation of revised and renumbered complete set of guidelines at CAS meeting – Tunisia - 3-4 April 2008 –ISSAI 4000 – Introduction –ISSAI 4100 – Compliance Audit Performed Separately from the Audit of Financial Statements –ISSAI 4200 – Compliance Audit Related to the Audit of Financial Statements Presentation of guidelines at FAS meeting – 9 April 2008 Mail of 13 May 2008 to all CAS members re proposed way forward with request for comments by end of May –3 consistent and stand alone documents –Complete set to be exposed/re-exposed together –Complete set for approval by GB in 2009 and endorsement by INCOSAI in 2010 –Consider need for ISSAI 4300 (working group – SAIs of Tunisia, Brazil and ECA) Activities since last PSC meeting - 3

7. PSC meeting - Beijing - October 20087 Review of comments received – May/June 2008 Bilateral contact with CAS members on issues raised in Tunisia and comments received – May/June 2008 Meeting with PSC Secretariat – acceptance for proposed way forward – 26 June 2008 Meeting of the CAS working group (SAIs of Denmark, India, Sweden and ECA) in Oslo – 27 June 2008 Updated draft documents distributed 3 July 2008 to CAS, FAS and CAREG with request for comments by 20 August 2008 Comments received from 5 SAIs and incorporated – August 2008 Revised exposure drafts of ISSAIs 4000, 4100 and 4200 approved at CAS meeting in Bratislava – September 2008 –including enhanced guidance drafted by CAS Court of Account SAIs within 4100 and 4200 (Section 10) Presentation of exposure drafts to PSC – October 2008 Activities since last PSC meeting - 4

8. PSC meeting - Beijing - October 20088 Performing the compliance audit and gathering evidence Evaluating evidence and forming conclusions Reporting Additional guidance – Court of Accounts Appendices with examples Structure of the Compliance Audit Guidelines Introduction Scope of the guidelines Objectives to be achieved Definitions Initial considerations Planning and designing the compliance audit

9. PSC meeting - Beijing - October 20089 Approval of exposure drafts by PSC (Oct 2008) Exposure drafts to GB for information* (Nov 2008) Exposure drafts to INTOSAI (Nov 2008 – Jan 2009) Incorporate comments (Feb/Mar 2009) Final approval by CAS (Mar/April 2009) Final approval of documents by PSC (June 2009) Translations (Fall 2009 / Winter 2010) Presentation at INCOSAI and endorsement (Fall 2010) Development Process Going Forward *assumes approval of proposed PSC due process to be discussed in Beijing

10. PSC meeting - Beijing - October 200810 Some Examples of Convergence