compliance audit icat issai implementation handbook. 141027 gt-2... · 2014-10-28 · supporting...

Supporting SAIs in implementing ISSAIs

Compliance Audit iCAT

Md. Shofiqul Islam Programme Manager

INTOSAI Development Initiative (IDI)

28 October 2014

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ISSAI Implementation Handbook


3i Programme Objective

Current Situation

ISSAI based audit practice

Support SAIs in developing countries in implementing ISSAIs

Level 2, 3 and 4 ( Financial, Performance &

Compliance Audit)

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http://www.google.no/url?sa=i&rct=j&q=support&source=images&cd=&cad=rja&docid=_7tzGW0aD0bv_M&tbnid=USM9_AzXnvb__M:&ved=0CAUQjRw&url=http://livingwater.no/english/support/support.html&ei=E9fAUcjdLqWE4ASFyYGwBA&bvm=bv.47883778,d.bGE&psig=AFQjCNH9f9Reif17L0EzE8jKJ1pu90Pd8w&ust=1371678768785074


3i Products for Compliance Audit

• iCAT (ISSAI Compliance Assessment Tool)

• ISSAI Implementation Handbook

• ISSAI certification programmes

• Community portal

• ISSAI based audit

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iCAT (ISSAI Compliance Assessment Tool)

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iCAT Guidance


iCAT

1 . The tool

• Map the practice to requirement

• Evidence based assessment of extent to which requirement is met

• Reasons for not meeting the requirements

2. Guidance

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iCATs

• It is Not an evaluation tool, but a mapping tool to identify detailed needs at level 4

• Created by a product development team in cooperation with Compliance Audit Subcommittee.

• Revised in 2014 to include Level 3

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Elements of CA iCAT

• Requirements

– Main

– Sub

• Reference of ISSAI

• Evidence for Compliance with Standards

• Reasons of non-compliance

• Reference documents

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Format of the iCAT

ISSAI Requirement

ISSAI Reference

Status of Compliance With Standards

Reasons for non compliance

Reference Document

Contains the ISSAI requirement in a brief form.

References the ISSAI requirement to the ISSAI.

Four options are available for status of compliance

Met

Partially Met

Not met

Not applicable

When the status of compliance is not met or partially met, the reasons for non compliance.

Mention the specific document, provision, system through which the SAI complies with the ISSAI requirement.

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Assessing Compliance

• Met

• Partially met

• Not met

• Not Applicable

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Challenges

• Identification of requirements

• Brevity of standards

• Scale used for assessment

• Implementation of ISSAIs

– Standard – methodology - audit practice - QA

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Mapping with Requirement - Example

• Requirement:

The auditor evaluates whether the evidence obtained is sufficient and appropriate so as to reduce audit risk to an acceptably low level.

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Example

• Main question: Determine whether the SAI has identified how the audit risk will be managed?

– in an audit manual, management decree, or other form of policy document

• Assessment: Partially met

• Justification of Assessment: Mentioned in guidelines – insufficient direction

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Example

Implementation Mechanism

• Main question: Question how the auditors ensure that the evidence they have gathered is sufficient and appropriate to reduce the audit risk. What procedures exist?


• Justification of Assessment: No process is described. All activities are judgmental.

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Example

Documentation • Main questions: Assess whether the

evaluation of evidence is documented.


• Justification of Assessment: As required by the National Audit Standards, the process of audit and all evidence should be documented., but in practice, this is not followed.

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Things to consider while doing iCAT

• iCAT should ...

– observe actions, not only compliance to legislation or manuals

– identify causes of the gaps

• iCAT should be conducted by: – A competent team with managerial position

– Broad-based consultative approach with cross section of staff

– Interview internal stakeholders and auditors

– External assistance can be utilized

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CA ISSAI Implementation Handbook

• Not manual

• How question

• CA Handbook

– Provides guidance and illustration

for setting up ISSAI based CA

audit practice

– Case study for conducting CA.

– SAI can use the handbook to facilitate the implementation of CA ISSAIs.

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1: Introduction and Basic Elements of Compliance Auditing

2: Main concepts of compliance audit 3: Planning and Designing a Compliance

Audit 4: Gathering Audit Evidence 5: Evaluating Evidence and Forming

Conclusion 6: Documentation and Communication 7: Reporting a compliance audit 8: Implementation Strategies for

compliance audit ISSAIs Case study

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CA ISSAI Implementation Handbook


Strategic consideration for SAIs

Implementing ISSAIs at Level 3 and Level 4

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SWOT analysis to determine implementation stratey.

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3i Community Portal

www.idicommunity.org

iCAT – English, Spanish and Arabic ISSAI Implementation Handbook For Compliance Audit

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http://www.idicommunity.org/

PA iCAT/Annexe 2 Peformance Audit_iCAT.docx


ISSAI Certification Programme on Compliance Audit

• Ecourse on iCATs • Ecourse on Implementing Compliance Audit ISSAIs • Workshops on Facilitating ISSAI Implementation • PSC- IDI Certification

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ISSAI Facilitators, Mentors, Experts

9 participants, 7 certified.

Country

1 Albania

2 Bosnia & Herzegovina

3 Kazakhstan

4 Moldova

5 Turkey - 4

6 Ukraine

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ISSAI Mentor – SAI Lithuania

ISSAI Experts- SAI Norway


Way Forward

• Maintenance of products

• Update based on the development of ISSAIs

• Feedback to CAS based on the programme experience

• Whitepaper on professional development in INTOSAI

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Thank you!

www.idi.no

www.idicommunity.org

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http://www.idi.no/

http://www.idicommunity.org/

compliance audit icat issai implementation handbook. 141027 gt-2... · 2014-10-28 · supporting...

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