1. RTI, MUMBAI / CH 91 QUALITY ASSURANCE IN PERFORMANCE AUDIT QUALITY ASSURANCE IN PERFORMANCE AUDIT DAY 9 SESSION NO.1 (THEORY) BASED ON CHAPTER 9 PERFORMANCE AUDITING GUIDELINES

2. RTI, MUMBAI / CH 92 Learning Objectives In the last 8 days we have discussed about the salient features of the Performance Auditing, Auditing standards and mandate, Strategic planning and selection of subjects, Performance Audit implementation plan, Implementing the Performance audit plan, Evidence and documentation, Reporting process and Supervision, review and quality control. We have also discussed about Follow-up procedure in Performance Auditing. Today we will be discussing about the Quality Assurance in Performance Auditing in two sessions.

3. RTI, MUMBAI / CH 93 Contd.. In the first theoretical session we will discuss:  The Concept of Quality Assurance  SAI India’s Auditing Standards  Quality assurance and quality control  Quality assurance system in SAI India

4. RTI, MUMBAI / CH 94Contd.. In the second theoretical session we will discuss:  Quality assurance reviews & quality assurance review programme  Standardisation of quality assurance questionnaire  Report on quality assurance review  Standards of assessment  Annual summary of quality assurance review  Skill and Knowledge of audit personnel and training  Annual training and professional development programme

5. RTI, MUMBAI / CH 95 The Concept of Quality Assurance The concept of Quality Assurance encompasses all ‘efforts’ to ensure that a high quality of service or product is provided It is about the ‘process’ by which the SAI goes about doing what it does. Part of this is knowing that ‘right things’ are done at ‘right time’; a part of it is doing them the ‘right way’

6. RTI, MUMBAI / CH 96 SAI India’s Auditing Standards SAI should establish system and procedures to : Confirm that internal quality assurance processes have operated satisfactorily ensure the quality of the audit report; and secure improvements and avoid repetition of weaknesses’

7. RTI, MUMBAI / CH 97 The objectives of quality assurance programmes in SAI India are to satisfy its top management that: The audit work is carried out of an appropriate standard; the output has been presented in a satisfactory manner; and the work in general meets the legitimate needs of the legislature, audited entities, the media and the public at large.

8. RTI, MUMBAI / CH 98 Quality assurance depends on a number of inter-related factors, which might be considered under the following groups: Basic conditions quality features supporting elements controls and reviews

9. RTI, MUMBAI / CH 99 Quality assurance and quality control Quality assurance  Is process centric  Quality assurance system concerns all steps and techniques to be followed to assure good quality audit  Is for the entire life cycle of the performance audit  System is put in place before the work is undertaken or done Quality control  It is product centric  Quality control system attempts to make sure that the results of performance audit are what was expected  Measures apply to the individual stages or products  Applied during and after the work is completed

10. RTI, MUMBAI / CH 910 Quality assurance system in SAI India  Performance audit conducted in pursuance of strategic goals and strategic objectives;  Setting the reasons or the audit objectives of performance audit;  The implantation guidelines on performance audit;  Organisation of audit work with clearly defined responsibilities for team members, audit officers and supervisory officers;  Standards of qualification and competence of the staff members, continuing skill development and training;

11. RTI, MUMBAI / CH 911 Cont…  Standards for independence, competence, sue care, field standards relating to planning, supervision and review, evidence, financial and performance audits, reporting and follow-up;  Documentation of the audit and of the management process;  Internal quality control system including the guidance on technical and administrative aspects of quality control; and  Quality review/assurance programmes.

12. RTI, MUMBAI / CH 912 Session Summary In this session we discussed:  The Concept of Quality Assurance  SAI India’s Auditing Standards  Quality assurance and quality control  Quality assurance system in SAI India