Harmonization project

The long and winding road to level 3…

Where did we start

CAS’ contribution to the developmentof public sector auditing

What did we achieve

A conceptual and professional basis for public sector auditing

ISSAI 100

ISSAI 200

ISSAI 400

ISSAI 300

Public sector auditing telling its own story

The story of public sector auditing

• Sets out from mandates • A part of national democratic systems• Contributes to transparency, accountability,

good governance and effectiveness in the public sector

ISSAI 100/400 – elements

Authorities and

criteria

Subject matter

The three parties Assurance

ISSAI 100/400:Types of engagements

Attestation engagements

It is the responsible party who measures the subject matter against criteria and presents the subject matter information, on which the auditor gathers sufficient and appropriate audit evidence to provide a reasonable basis for expressing a conclusion.

Direct reporting engagements

It is the auditor who measures or evaluates the subject matter against criteria. The auditor selects the subject matter and criteria, taking into consideration risk and materiality. The outcome of measuring the subject matter against the criteria is presented in the audit report in the form of findings, conclusions, recommendations or an opinion.

The users wish to be confident about the reliability and relevance of information used as basis for their decisions.

Can be achieved in:1. Different forms: through opinions and conclusions which

explicitly convey the level of assurance or in other forms

2. Different levels: reasonable and limited assurance

ISSAI 100/400: Assurance

Audit types differ in: objectives, types of engagements and ways of

providing assurance

Public sector auditin

g

Financial

Compliance

Performance

Compliance – the bridge is still there

Both:• Direct reporting and

attestation engagements

• Limited and reasonable assurance

• Opinions and conclusions

Harmonization – levels of ISSAIs

Level 3: Principles

• ISSAI 400

Level 4: Auditing guidelines that may be applied as authoritative standards

• ISSAI 4000 series

Harmonization: Consequences for SAIs

The principles can be used to establish authoritative standards in three ways:

• as a basis on which SAIs can develop standards; • as a basis for the adoption of consistent national standards; • as a basis for adoption of the General Auditing Guidelines as

standards.

What standards the audits are based on is to be stated publicly by the SAI.

Harmonization: Consequences for CAS

Maintenance of ISSAI 4000 series:• Consistency in terminology, structure and contents

with level 3• Distinguish clearly between requirements and

guidance• «Should» in ISSAI 400 is to become «shall» in the

ISSAI 4000 series

Harmonization: Paving our way forward