1. 1 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Ljubljana, 12-13 October 2009 Workshop 4 - Report Quality Assessment of the Audit Activity Ljubljana, 12-13 October 2009

2. 2 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Ljubljana, 12-13 October 2009 Workshop objectives How to guarantee a qualitative and efficient a)supervision, b)assessment, and, c)review of the audit activity.  Where audit work is in the Audit Authority  Where audit work is carried out by other public audit body  Where audit work is contracted out to external audit firm

3. 3 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Ljubljana, 12-13 October 2009 Elements of Quality Review a)Structure  Independence, status and reporting level in organisation b)Staff  qualifications, skills and experience c)Methodology  tools, processes and procedures - audit manual

4. 4 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Ljubljana, 12-13 October 2009 Elements of Quality Review Why do we need a quality review?  Reliance on other auditors  More efficient  Reduce duplicity  Standards understood and implemented in common way  Check compliance with guidelines, rules etc.  Implement corrective actions in good time (supervise, mentor)

5. 5 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Standards ISO life cycle Plan Do Check Act

6. 6 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Quality Assessment Milestones PLAN Strategy Audit plans FIELDWORK Audit manual, IT system to record work, checklists, procedures BEFORE REPORT Draft findings Contradictory process with auditees REPORT Final audit report presented AFTER REPORT / CLOSE FILE Quality assessment of working papers / report

7. 7 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Ljubljana, 12-13 October 2009 Possible ways for quality assessment HOW to do it? Ex-ante Direct supervision or mentoring during audit Joint audits Coordination of audit steps (incl. assessment of audit programmes) Ex-post  Quality assessment of the audit documentation, report etc.  Quality and effectiveness of communication with AA  Assessment by external firm?  Feedback from audit bodies and from auditees

8. 8 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Ljubljana, 12-13 October 2009 Recommendations 1.Assess functional independency (structure) 2.Assess personnel adequacy (staff quality and numbers) and any changes to circumstances 3.Assess adequate information flows (e.g. on results of external audits, modification of laws or strategy...) 4.Does AA have feedbacks from audit units? (e.g. difficulties while executing the audit)

9. 9 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Ljubljana, 12-13 October 2009 For Future Reflection … 1.Is there any motivation for audit unit to improve quality? 2.Is it possible to introduce any quality indicators and benchmarking? 3.Who should execute the follow - ups of findings and recommendations of assessment? 4.How to ensure adequate access to documentation of audit body 5.Problem balancing costs v benefits of assessment (limited resources) 6.Requires good communication between AA and Audit bodies

10. 10 Homologues Group Meeting Slovenia, October 2009 Homologues Group Meeting Slovenia, October 2009 Republika Slovenija European Union Ljubljana, 12-13 October 2009 ARE AUDITS MAKING A DIFFERENCE? Thank you for your attention Thank you for your attention