INTOSAI News

XVIII INCOSAI

State Audit Office of Hungary hosted the XVIII INCOSAI at Budapest from October 10-16, 2004. The opening ceremony was held in the historic Parliament Building where apart from delegates, observers and Hungarian Government Official were present. Dr. Arpad Kovacs President of the State Audit Office welcomed the delegates to the XVIII INCOSAI and praised the outgoing Chairman, INTOSAI, Mr. Yun-Churl Jeon, Chairman, Board of Audit and Inspection of Korea for his contribution since Seoul congress. Dr. Kovacs in his welcome speech delivered a special welcome to Dr. Josef Moser, Secretary General of INTOSAI who took from Dr. Franz Fiedler in July 2004. Mr. Jeon, the out going Chairman of INTOSAI also spoke at the opening ceremony and talked about the bright future of the INTOSAI, referring to the Strategic Plan that was going to be adopted during the congress. This congress was attended by a record number of 492 delegates from a record number of 148 supreme audit institutions. There were also 25 observers from 15 international organizations and 95 accompanying persons.

The other major highlights of the Congress were:
Unanimous approval of the INTOSAI Strategic Plan 2005-10. The plan is available at the INTOSAI web site i.e. www.intosai.org.

Adoption of a wide range of professional standards, guidelines, methodologies and best practices on audit and internal Control Standards, Public Debt, Privatization Information Technology and Environment.

Creation of the Finance and Administrative Committee of the Governing Board to achieve the Goal 4 of the Strategic Plan.

Amendment of the Statutes of INTOSAI for implementation of the Strategic Plan and to expand the membership by including supranational and associate members.

Adoption of the Budapest Accord which mainly includes Strategic Plan and the Themes of this Congress.

During the congress the two prestigious awards of INTOSAI were also conferred. The "Jorge Kandutsch" Award is given to a Supreme Audit Institution to recognize its outstanding accomplishments and contributions and the "Elmer B. Staats" Award is given to the author for the best article published in the International Journal of Government Auditing during the preceding three years.

The Budapest Congress gave the "Jorg Kandutsch" award to National Audit Office of the United Kingdom. Sir John Bourn, Comptroller and Auditor General of U.K. received this award at the opening ceremony of the congress.

The "Elmer B. Staat" award was conferred on Mr. Jameleddine Khemakhe, Chamber President of the Court of Audit of Tunisia for his article "Integral Auditing" published in the April 2001 issue of the International Journal of Government Auditing.

A weeklong Congress rejuvenating the motto of the INTOSAI "Mutual Experience Benefits All" came to an end on October 16, 2005. This triennial event will come again in 2007 when all the members around the world will gather in Mexico City, Mexico in 2007.

Important Disseminations by the INTOSAI Committees & Working Groups

Auditing Standard Committee

The Auditing Standards Committee (ASC) is chaired by SAI-Sweden. The committee presented its "Implementation Guidelines for Performance Auditing". The committee approved these guidelines. These guidelines are available in all the five languages of INTOSAI at the INTOSAI website (www.intosai.org) and on the ASC website (www.rigsrevisionen.dk/asc). The chair of ASC also informed that the work on developing financial audit guidelines in close cooperation with International Federation of Accountants (IFAC) and International Auditing and Assurance Standards Board (IAASB) is proceeding on schedule.

Internal Control Standards Committee

The committee presented an updated version of the Guidelines for Internal Control Standards, which was first brought out in 1992. The new version is better than the earlier version and provides several examples in the appendix. The chair of this Committee is SAI-Belgium. During the congress the chair emphasized the outcome of the second conference, which was held in May 2000 in Budapest. In this conference committee issued its recommendations, which are linked to the corporate Governance. In future, the committee will further develop and elaborate the guidelines.

Public Debt Committee

The congress approved the following two documents presented before them by this committee:

Fiscal Exposure: Implications for Debt Management and the Role of SAIs.

Public Debt Management and Fiscal Vulnerability: Potential Roles for SAIs.

Public Debt Committee

These documents are also available on the committee's website (www.intosaipdc.org.mx) in all the five languages of INTOSAI. The chair of this committee i.e SAI-Mexico informed that the Committee is currently developing technical documents on performance audit on public debt, a comparative analysis of public debt regulations, a study on contingent public debt and substantive test guidance. The next meeting of the committee is in Bulgaria in June 2005 and these documents will be presented in the meeting.

In the past the committee has imparted training for the capacity building of the staff in public debt auditing. The committee is presently assessing the possibility of extending the training programme to INTOSAI regional groups on request.

INTOSAI Standing Committee on IT Audit (ISCITA)

The primary focus of this Committee has been on assisting the capacity building efforts of its members not only in auditing IT applications but also in using IT in modernization. In addition the Committee has tried to facilitate exchange of information to meet the INTOSAI goal of enrichment through experience sharing. The IT audit courseware developed by the Committee, and the advanced training modules have attempted to provide a readymade base for training. The IT Audit Courseware has again been revised and updated The various guidelines issued by the Committee and the research undertaken by it have attempted to address emerging concerns. Coverage has been given to the issues like IT infrastructure management, development of IT strategies, CAATs for non financial audits, comparison of cyber laws etc. The Committee has also provided useful service to the entire INTOSAI membership in compiling and regularity updating an EDP Directory and mandates of SAIs.

In addition, advanced training modules on IT investment management and cost estimation techniques for audit from GAO-USA are being converted into advance training module.

The Committee Journal and the committee website both provide extremely useful support to the realization of the committee's goals of capacity building and information exchange. There has been a substantial increase in the circulations of the Journal and the visits to the website (www.intosaiitaudit.org). The project on IT infrastructure management, which resulted in guidelines for auditing IT service management are also available on the web site of the committee.

Working Group on Privatization

The congress adopted the latest publication of this working group i.e. "Guidelines on Best Practices for the Audit of Risk in Public/Private Partnerships". In addition the congress also adopted the future work programme. The working group completed its ten-year and has a member ship of 40 SAIs. The next meeting of the committee is scheduled in September 2005 in Brazil. The salient feature of the programme in the forthcoming meeting will be: Further cooperation with IDI in developing training for SAIs in privatisation, economic regulation and public/private partnerships by providing training material and subject matter experts.

Redesigning of the website (www.nao.org.uk/intosai/wgap/home.htm) to enhance content and "look and feel".

Development of a series of case studies on privatization, economic regulations and public/private partnerships that give practical guidance on key technical issues. This will also have experiences of the member SAIs.

Working Group on Environmental Auditing (WGEA)

WGEA presented its work plan for 2005-07, which is based on the survey results conducted in 2003 covering all INTOSAI members. Congress adopted the work plan. The plan includes:

Focusing on biodiversity as the new central theme Preparing a retrospective summary report on a broad range of environmental topics.

Capturing lessons learned and sharing experiences in conducting & reporting on collaborative audits.

Encouraging further training and information exchange and Broadening its base by building relationship with external international organizations.

Apart from the work plan the working group also presented two documents, which were adopted by the congress. These two documents are:

Environmental Audit and Regulatory Auditing Sustainable Development: The Role of Supreme Audit Institutions.

Two other documents on auditing water issues and auditing waste management have been approved as working group documents and are available on the WGEA website (www.environmental-auditing.org).

Working Group on Programme Evaluation (WGPE)

Cour De Comptes (SAI-France) chairs this working group. WGPE presented a draft document_Programme Evaluation for SAIs: A Primer at the congress. It discusses:

  1. The interrelationship between performance audit and programme evaluation.
  2. A definition of Programme evaluation and related technical terms.
  3. Challenges in planning and designing evaluation.
  4. Programme evaluation methodology and
  5. The future prospectus for programme evaluation.

Appointment of Chairs of Committees and Goal Liaisons

The INTOSAI Strategic Plan 2005-2010 lays down a revised organizational frame work with four clear Goals:

Goal 1: Accountability and Professional Standards
Goal 2: Institutional Capacity Building
Goal 3: Knowledge Sharing and Knowledge Services and
Goal 4: Model International Institution.

The objective of Goal 1 is to promote strong, independent, and multidisciplinary SAIs by (1) encouraging SAIs to lead by example and (2) contributing to the development and adoption of appropriate and effective professional standards.

The objective of Goal 2 is to build the capabilities and professional capacities of SAIs through training, technical assistance and other development activities.

Goal 3 consists of a number of working groups which have to work towards achieving the objectives of this goal. The objective of goal 3 is to encourage SAI co-operation, collaboration & continuous improvement through knowledge sharing, including providing benchmarks, conducting best practice studies, performing research on issues of mutual interest and concern.

The objective of Goal 4 is to organize and govern INTOSAI in ways which promote economical, efficient and effective working practices while maintaining due regard for regional balance and the different models and approaches of member SAIs.

At the 53 (A) INTOSAI Extra-ordinary Governing Board meeting held in Budapest in March 2005 SAI's of Denmark and Morocco were elected as the Chair of the Professional Standards Committee and the Capacity Building Committee respectively. The Goal Liaisons elected at the meeting were - SAI-Portugal as Goal Liaison 1, SAI-USA as Goal Liaison 2 and SAI-India as Goal Liaison 3. The Chair of the Finance and Administration Committee and Goal Liaison 4 is SAI- Saudi Arabia.