SAV issued Guidance on auditing National Target Programs and Guidance on developing Annual Audit Plan

In pursuit of continuing improving audit quality, SAV has focused its efforts on building guidance for audit types under its mandate. The two most recent guidance came into force were Guidance on auditing National Target Programs and Guidance on developing Annual Audit Plan. 

SAV focuses on improving its audit report’s quality

Guidance on auditing National Target Programs gives guidlines on the four stages of a National Target Programs audit engagement: Planning, Execution, Reporting and Follow up. The Guidance came into force from March 2017.

In the Guidance, the Audit Planning stage consists of: (1) Gathering information regarding the audited National Target Program; (2) Evaluating audited entity’s internal control system; (3) Identifying audit objectives, materiality and audit risks; (4) Preparing Audit Planningand Approving the Detail Audit Planning.

It provides detailed practices to assist auditors to follow established audit standards such as the State Audit Standard No. 1315 - Identifying and evaluating the risk of material misstatement by understanding about audited entity, the State Audit Standard No. 3000 - Guidance on Performance Audit, and the State Audit Standard No. 4000 – Guidance on Compliance Audit and other related SAV’s regulations.

According to the Guidance, auditors are authorized to verify information with third parties or request technical support from external experts when circumstances arise. All the procedures must be properly documented and accompanied with sufficient evidence. For example, when there’s doubt about the integrity of data submitted by the client, auditors must conduct additional audit procedures to either prove or dismiss the suspicion.

Guidance on developing Annual Audit Plan was issued in March 2017. The Guide aims to assist SAV in building its Annual Audit Plan in compliance with the Constitution 2013 and other established laws and regulations. Another objective of the Guidance is to reduce conflicts and promote cooperation between SAV and inspection agencies of the Government. According to the Guide, when developing an Annual Audit Plan, SAV should maintain its independence, objectivity, and integrity while also making sure that there is no overlap between its audit list and that of the Government’s. The criteria used to select the audit topics in Annual Audit Plan are risk assessment, public concerns/interest and the period of audit rotation.

Developing the Annual Audit Plan involves different departments within SAV. Each Specialized audit department (implementing level) proposes its own audit plan for each year. The Department of General Affairs (strategic level) will review these proposals and sum them up into a draft Annual Audit Plan for the whole SAV. Once the Annual Audit Plan is issued by the Auditor General, all departments are required to observe it.

Leaders of audit-based departments are responsible for implementing audits under their jurisdiction while Department of General Affairs is in charge of monitoring and asseessing the implementation of Annual Audit Plans.

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