Agenda item 9 Discussions on Topics for FAS Work Plan 2014-2016

1. Agenda item 9 Discussions on Topics for FAS Work Plan 2014-2016

2. Work plan 2011-2013 • To maintain and continue to develop the ISSAIs on Financial Audit • To create awareness for the standards and guidelines and contribute with expert knowledge on the guidelines, relating to implementation efforts • To contribute to the consistency in the ISSAI framework • Explore the advantages and possibilities of including other standards issued by the IAASB as part of the ISSAIs • Summarize lessons learnt throughout the process • Monitor implementation of the guidelines among INTOSAI members

3. 1. To maintain and continue to develop the ISSAIs on Financial Audit • Goal attended to, new PN 610 will be handled in this meeting. New PN 720 will be up next year. • Goal considered relevant for coming period • New ISA projects • Need for clarifications of PNs due to comments received during implementation • Other needs for development?

4. To discuss: • Next three years; • A few new or revision projects relating to ISAs (?) • Conforming changes as a result of Harmonization project • Clarifications as a result of implementation monitoring • Other standards • How would we ensure access to relevant expertise? • Pool of experts? • Representatives from each regional group? • FAS members?

5. 2. To create awareness for the standards and guidelines and contribute with expert knowledge on the guidelines, relating to implementation efforts • Activities so far: • INTOSAI Journal, • Key persons • Awareness raising material presented on website • Awareness raising seminars and speeches • Goal partly relevant for next period, especially expertise knowledge • Support IDI?

6. To discuss: • Who should be most efficient to approach? • Who should be involved? • What kind of presentation, awareness raising, or training material do we need to develop? • Need for more detailed implementation guidance?

7. 3. To contribute to the consistency in the ISSAI framework • Goal attended to through participation in Harmonization Project • May include the need for conforming changes of existing guidelines • Such changes needs to be attended to before 2013 • Goal may be relevant if new PSC harmonization initiatives are decided (ISSAI 30)

8. 4. Explore the advantages and possibilities of including other standards issued by the IAASB • Goal attended to, survey conducted 2012. • Goal considered relevant • FAS decision to make a new survey at a later stage (2014) • Which standards are most relevant?

9. Additional standards of possible relevance

10. Other areas that might need guidance • Guidance for SAIs with responsibilities related to fraud in an audit of financial statements? • Guidance for SAIs with responsibilities related to environmental issues (sustainability reports) in an audit of financial statements? • Guidance for SAIs with responsibilities to report on internal controls in an audit of financial statements? • Guidance for Sais with responsibilities to perform Budget Execution Audits?

11. To discuss: • How do we best approach the need for additional relevant IAASB standards (survey, public consultation paper, use of KP, regional groups)? • If we launch a survey, how would such a survey be conducted (web-based, hearings)? • Are there areas, in addition to possible IAASB assurance standards, we need to consider as part of the broader mandate for a financial audit in the public sector?

12. 5. Summarize lesson learnt • Carry out a review of lessons learnt by different actors relevant to FAS’ work. • Draw conclusions on lessons learnt and share them with relevant stakeholders. • FAS decision to replace this with “chairmans reflections”

13. 6. Monitor implementation of the guidelines among INTOSAI members. • Pre-implementation monitoring activities • Post-implementation activities

14. Pre-implementation monitoring activities • Main purpose is to identify those that have decided to implement and, if possible, receive early alerts on needs for clarifications • Pre-implementation questions sent out to key persons; • Has your organization decided to implement the ISSAIs for Financial Audit? • Yes, we will implement/have implemented the ISSAIs as the authoritative standard. • Yes, we will implement/have implemented the ISSAIs as guidance to support other standards (if so, please specify which standards). • No, but we will implement/have implemented the ISAs as the authoritative standard • No, but we are considering implementing the ISSAIs for Financial Audit. • No, and we are not considering implementing the ISSAIs.

15. Pre-implementation monitoring activities • If you have decided to implement the ISSAIs for Financial Audit, how will you go about the implementation process? • We will implement/have implemented the ISSAIs all at once. • We will implement/have implemented the ISSAIs step by step. • We were already working in accordance with the ISAs and only require minor adjustments to our current audit approach. • Discussions: • Do we need to approach a larger number of SAIs, and if so, how can we approach them? • Additional information needed?

16. Post-implementation activities • Main purpose is to identify areas were the quality of the ISSAIs may need to be enhanced; • Aspects of the ISSAIs that might be difficult to understand, • The need for additional requirements or deletions, in the ISAs, • Areas in which the SAI may decide to provide additional guidance material to achieve consistent application, • Aspects of the ISSAIs that may be difficult to translate for different reasons.

17. Post-implementation activities • Will need a more comprehensive survey and best undertaken when a significant number of SAIs have implemented. • To discuss: • How? • Timing? • Who?