Establishing an Audit Quality Management System
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THEME 1: ESTABLISHING
AN AUDIT QUALITY MANAGEMENT SYSTEM WITHIN A SUPREME AUDIT INSTITUTION
PRINCIPAL PAPER
Prepared by:
State Audit Office, Hungary (chair)
European Court of Auditors
National Audit Office, Malta
National Audit Office, Denmark
Accounts Chamber, Russian Federation
February 2007
Table of Contents
INTRODUCTION 5 Achieving excellence in audit activity 5
Glossary 7
Chapter I: Leadership 9 Leadership and Supreme Audit Institutions 9 Leadership's main factors for ensuring audit quality 10
Chapter II: Strategy and Planning 13 Strategic planning 13 Operational planning 14
Chapter III: Human Resource Management 17 Human resource planning 18 HRM policies and procedures 18 Job descriptions 18 Employee recruitment and selection 18 Staff training and development 19 Performance appraisals and recognition 19 Employee remuneration and benefits 20
Chapter IV: Building Quality into the Audit Process 21 Audit standards 21 Guidelines, procedures and methods 21 Supervision and review 22 Support 22
Chapter V: External Relations 25 Audited organisations 25 Parliament and its committees 26 Media and the general public 27 International organisations and other SAIs 27
Chapter VI: Continuous Development and Improvement 29 Continuous review and monitoring 29 Post-audit quality review 30 Self-assessment of the organisation 30 Other ways of continuous development and improvement within the organisation 31 External opinions 31
Concluding Remarks 33
Reference Documents 35
Collection of Questions 37
Introduction
1. THE EUROSAI GOVERNING BOARD DECIDED TO DISCUSS AUDIT QUALITY DURING THE VII EUROSAI CONGRESS IN KRAKOW DUE TO BE HELD BETWEEN 2 AND 5 JUNE 2008. IT WAS ALSO AGREED UPON THAT THE SUBJECT OF THEME I OF THE CONGRESS WOULD BE ‘ESTABLISHING AN AUDIT QUALITY MANAGEMENT SYSTEM WITHIN A SUPREME AUDIT INSTITUTION’. DISCUSSIONS ON THEME I
THEME 1: ESTABLISHING
AN AUDIT QUALITY MANAGEMENT SYSTEM WITHIN A SUPREME AUDIT INSTITUTION
PRINCIPAL PAPER
Prepared by:
State Audit Office, Hungary (chair)
European Court of Auditors
National Audit Office, Malta
National Audit Office, Denmark
Accounts Chamber, Russian Federation
February 2007
Table of Contents
INTRODUCTION 5 Achieving excellence in audit activity 5
Glossary 7
Chapter I: Leadership 9 Leadership and Supreme Audit Institutions 9 Leadership's main factors for ensuring audit quality 10
Chapter II: Strategy and Planning 13 Strategic planning 13 Operational planning 14
Chapter III: Human Resource Management 17 Human resource planning 18 HRM policies and procedures 18 Job descriptions 18 Employee recruitment and selection 18 Staff training and development 19 Performance appraisals and recognition 19 Employee remuneration and benefits 20
Chapter IV: Building Quality into the Audit Process 21 Audit standards 21 Guidelines, procedures and methods 21 Supervision and review 22 Support 22
Chapter V: External Relations 25 Audited organisations 25 Parliament and its committees 26 Media and the general public 27 International organisations and other SAIs 27
Chapter VI: Continuous Development and Improvement 29 Continuous review and monitoring 29 Post-audit quality review 30 Self-assessment of the organisation 30 Other ways of continuous development and improvement within the organisation 31 External opinions 31
Concluding Remarks 33
Reference Documents 35
Collection of Questions 37
Introduction
1. THE EUROSAI GOVERNING BOARD DECIDED TO DISCUSS AUDIT QUALITY DURING THE VII EUROSAI CONGRESS IN KRAKOW DUE TO BE HELD BETWEEN 2 AND 5 JUNE 2008. IT WAS ALSO AGREED UPON THAT THE SUBJECT OF THEME I OF THE CONGRESS WOULD BE ‘ESTABLISHING AN AUDIT QUALITY MANAGEMENT SYSTEM WITHIN A SUPREME AUDIT INSTITUTION’. DISCUSSIONS ON THEME I