1. 1 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Internal Quality Assessment Process Internal Quality Assessment Process Ljubljana, 12-13 October 2009 Ulrika Bergelv Audit Director The Swedish National Financial Management Authority, ESV Ulrika Bergelv Audit Director The Swedish National Financial Management Authority, ESV

2. 2 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Internal Quality Assessment Process 1.Introduction 2.Standards 3.Process and Product Quality 4.Organisation 5.Methodology 6.Quality Assessment Milestones 7.Quality Assessment of other bodies 8.Objectives 9.To be developed 10.Conclusion

3. 3 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Introduction 1(3) Most countries: Sweden: Cabinet (22 ministers) Ministries (12) Agency ESV Agency - Independent management in relation to other authorities and to the Government.

4. 4 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Introduction 2(3) Audit Authority for 7 EU-funds/19 programs; European Regional Development Fund – ERDF European Social Fund- ESF European Fishery Fund - EFF External Borders Fund - EBF European Fund for the Integration of Third Country Nationals - EIF European Return Fund European Refugee Fund Winding-up body closure of Structural Funds 2000-2006 (partly) Certification body for; European Agricultural Guarantee Fund - EAGF European Agricultural Fund for Rural Development – EAFRD

5. 5 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Introduction 3(3) Senior Audit Manager ERDF/ mainstream Senior Audit Manager ESF Senior Audit Manager EAGF EAFRD Senior Audit Manager EFF SOLID Quality and Methodology Manager Senior Audit Manager ERDF/ Interreg Audit Director

6. 6 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Standards 1(2) IIA AS 1300,1310,1311 IAASB ISQC 1 (100pages) Proposed Redrafted International Standard on Auditing and International Standard on Quality Control ISA 220 (Redrafted), Quality Control for an Audit of Financial Statements ISO 9001:2008 Management System for Quality Process

7. 7 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Standards 2(2) ISO PDCA life cycle Plan Do Check Act

8. 8 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Process versus Product Quality Process Quality Product Quality - Audit Reports...

9. 9 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Organisation - Responsibilities Audit Director Senior Audit Managers Auditors Quality and Methodology Manager

10. 10 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Methodology High quality through audit tools and work processes: –Audit Manual –Standardized work processes –Templates, checklists and documentation –IT-system for management of project audits

11. 11 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Quality Assessment Milestones 1(3) Strategy: Presented by a Senior Audit Manager – decision by an Audit Director Operative Audit Plan: Presented by a Senior Audit Manager – decision by an Audit Director

12. 12 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Quality Assessment Milestones 2(3) For each audit: Planning phase - Planning document and checklists/work programs - presented by Senior Audit Manager – decision by Audit Director After completion of field work - QA by Senior Audit Manager (Next page) Before reporting - Draft audit report presented by Senior Audit Manager - Contradictory process with auditees Reporting - Final audit report presented by Senior Audit Manager - decision by Audit Director After closing of the files (sample based) - QA by the Quality and Methodology Manager

13. 13 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Quality Assessment Milestones 3(3) Quality Assessment Milestones 3(3) QA template by Senior Audit Manager (examples of questions) Planning phase: Review of planning documents (i.e. Audit plan, Planning Memo) Signed planning documents Documentation: Proper use of templates Referencing “Audit trail” from planning document  documentation  audit report Checks: Signed work papers Documentation of audit evidence Contradictory procedures performed Audit report: Assessment of the Management and Control Systems Conclusions on Key Requirements Report properly signed by Senior Audit Manager and Audit Director

14. 14 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 QualityAssessment of Other Bodies Quality Assessment of Other Bodies Ex ante Independence Competences Objectivity Post File reviews

15. 15 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Objectives Improved Management and Control Systems Effective audit organisation compared to other audit organisations

16. 16 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 To be developed Quality parameters – Effective audit: “Impact” measurement Recommendations – implementation Cycle time……

17. 17 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Conclusion High quality – Right quality Not just by chance Have a clear objective !

18. 18 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Thank you for your attention! ulrika.bergelv@esv.se+4686904469