PAS Recent achievements and new proposals

1. PERFORMANCE AUDIT SUBCOMITTEE PASRecent achievements and new proposals Brasília, June 2009

2. Summary • PAS achievements since October 2007 • thus far: draft documents • PAS future work – beyond 2010

3. PAS products • Two documents prepared • Performance Auditing Standards (exposure draft): prepared by the European Court of Auditors (Chair), Norway, Saudi Arabia, Sweden • Sustainable Performance Auditing Function Guidance (work draft): prepared by Australia, Brazil (Chair), Netherlands, Norway, Sweden, United Kingdom

4. Documents prepared – Strategy for disseminating performance auditing • Performance Auditing Standards • Make PA more accessible to the SAI community by communicating the “essence” of performance auditing. • Sustainable Performance Auditing Function Guidance • Help SAIs that are considering undertaking their first performance audits or that have limited performance auditing experience: • Introduction to PA • Function

5. Performance Auditing Standards Table of Contents: 1. Introduction 2. Performance Auditing Standards 2.1. Definition 2.2 Audit objective 2.3. Programming of audit tasks 2.4. The audit process 2.4.1. Planning an audit task 2.4.2 Scope of the audit 2.4.3. Performing audit procedures 2.4.4. The nature of audit evidence 2.4.5. Reporting 2.4.6. Follow-up of audit results 2.5. Quality control

6. Level of the Performance Auditing Standards within the ISSAI framework The Standards: - represent the core of performance auditing (three “Es”) - are the key principles extracted from the existing ISSAI 3000 - Performance Auditing Guidelines - are aligned with the intended revision of ISSAI 100-400 - should, then, be classified as level 3 in the ISSAI framework

7. Sustainable Performance Auditing Function Guidance Contents: Introduction : Chapter 2: presents the PA principles and describes internal and external benefits of the audit work; Chapter 3: points out the main challenges of introducing PA; Chapter 4: highlights the key aspects to be considered to start PA activities; Chapter 5: provides an outline of the principal issues for sustainable PA function.

8. Introduction:- Purpose: to facilitate the process of introducing and maintaining performance auditing in SAIs - Client: SAI leadership and management staff- Focus: the strategic needs and general implications of introducing a sustainable performance auditing function Chapter 2: The character and benefits of Performance Auditing PA principles PA features (compared to financial and compliance auditing) Importance to SAIs, government and society Internal and external benefits

9. Chapter 3:The challenges of introducing Performance Auditing- Long term commitment of SAI management is needed- The importance of getting legislators involved- The importance of reaching out to various stakeholders - Organizational issues need to be addressed - Key factors for successChapter 4:How to get started - Building relationships with stakeholders- Beginning on a small scale, with a pilot project and focused themes - Determining the resources needed- Raising awareness within the SAI - Not setting up detailed systems and procedures at this early stage

10. Chapter 5: Building capacity for sustainable PA function- Operational Manager- Staff Recruitment and Training- Performance Audit Framework- Performance Audit Policy Manual- Communications Strategy- Following up on Implementation of Performance Audit Recommendations

11. Beyond 2010 • Emphasis on implementation of existing documents and promotion of performance auditing • Arrange and participate in different seminars and workshops (e.g.: risk analysis, quality control, efficiency studies and reporting) • Establish a strategy for the website • Share information • Examples of good reports linked to specific issues • Training

12. Beyond 2010 • Emphasis on implementation of existing documents and promotion of performance auditing • Review ISSAI 3000 and assess the need for editorial changes in light of the Standards • Support and participate in the task of enhancing consistency in the ISSAI framework

13. Thank You.