1. Value judgements in (fiscal policy) auditing Sami Grönberg Jenni Jaakkola National Audit Office of Finland

2. The criteria for fiscal policy auditing are usually defined in terms of economics and law. Is there is a need for value-based aspects to auditing?

3. For instance, auditing tax policy is based on the economics of optimal taxation, and that taxation is in line with the constitution/other legislation. Also the suggestions on how to improve policy processes are set in such terms.

4. However, issues related to environment, equality, culture, social issues etc. might also be criteria for auditing. In this workshop we would like to discuss whether there is a need for value-based aspects to auditing? If yes, how should one take them into account when designing/executing audits?

5. Value judgements in (fiscal policy) audits Fiscal policy decision making: Who can determine the sufficient level of social security? Performance audits: Specific and measurable objectives: How to evaluate cost-effective management of finances on the environment or other immeasurable targets?

6. Value judgements at different types of audits Sami - Fiscal Policy Audits Jenni - Fiscal Policy Evaluation – Values are incorporated into fiscal policy in many ways Example: tax policy audit Fiscal Policy audits vs. Other audits: Performance audits, Financial audits

7. Value judgements at different types of audits Stages of audit process – Choice of audit topic/planning – Executing – Recommendations Role of the auditor vs. institutional norms (ISSAI standards; ethical issues in ISSAI) How to attach monetary values to values? Identifying values; identifying winners/losers

8. This workshop: We would like to form 3 groups to discuss and make notes of the following topics:

9. Topics for discussions 1. Experiences of value judgements Share your experiences of value judgements in your work Have you encountered need to consider values? How did you succeed? – Defining values – Attaching monetary values – Recommendations 2. What is the role of values? Environment, Social values, Equality, Culture How to define winners and losers? How to quantify/evaluate (monetary values) 3. Stages of audit and the role of the auditor How to be objective when choosing the subject? Is the observed risk always in terms of money? How to pick relevant recommendations?

10. Conclusions from the topics