ISSAI 4300 Compliance Audit in the Context of Courts of Accounts

1. ISSAI 4300Compliance Audit in theContext of Courts of Accounts 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

2. Compliance Audit in theContext of Courts of Accounts • Background • Framework for the redrafting process. • main specific issues 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

3. Background • Recognition of the particular requirements for the Court model SAIs • a particular responsibility laid on the CAS since Compliance audit is a core activity for most Court model SAIs. • A chapter on court issues introduced in the 4000 series. • paragraphs included in the ISSAI 400. 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

4. Background • The ISSAI 4300 has been developed, revised and refined through several rounds with participation of SAI Tunisia, ECA, SAI Romania, SAI of Brazil, and SAI of Portugal 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

5. Background • Luxemburg meeting (March 2012), the challenge: • achieve a 4300 document where the concepts are at high level as it is required in an ISSAI and the contents generic enough to be applicable to the whole family of Court type SAIs, which operate under very different juridical environments • Court issues _luxemburg_meeting_draft minutes1 .docx 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

6. Background • Lithuania meeting (September 2012): • Recognized that the product has got an excellent quality and concluded that the PSC secretariat should be contacted for agreement on further process towards exposure and endorsement from the INCOSAI (2016). • cas_letter to PSC_4300.docx 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

7. Background • Oslo meeting (January 2013), decision to rewrite 4300. • Two options for compliance audit in the context of Courts: • to be integrated into level 4 in a maintenance process as: • additional requirements • as a standalone document. • The last decision about further process is delegated to this CAS meeting. 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

8. Framework for the redrafting process.WHY? • To satisfy requirements coming from the harmonization project (level 3, ISSAI 400) the maintenance projects, and the lessonslearnedfromimplementation. • General requirementsdefined by level 3 supported by the level 4 ISSAI 4000 series • sameterminologyto beused • Clear Distinction betweenrequirements(one commonauthoritative?) and furtherguidance of the audit process (for relevant combinations and variations). 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

9. Framework for the redrafting process, How? • Find the best way to: • Satisfy harmonization requirements • make the Court model a part of the standards and INTOSAI, meet and accommodate the special needs of the auditors acting in the context of Courts. 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

10. Is there a need for a separate standard, or not? the arguments 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

11. Is there a need for a separate standard, or not? • In Court environment, requirements are globally similar to what is described in 4100 and 4200. • However, following the planning, performance and evidence gathering phases, additional and specific requirements are part of the “audit/instruction” to provide proposals on the liability of the responsible person. • Is it important enough to justify a separate standard? • Depends on the point of view (harmonisation/mantainance project, SAIs of Court model…) 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

12. Framework for the redrafting process, How? • Making the SAI of Court model a part of the standards and INTOSAI, meet and accommodate the special needs of the auditors acting in the context of Court is a main reason for the need of a stand-alone standard. • This is fundamentally related to specific issues which are not necessarily relevant in an Office context. 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

13. Main specific issues • Compliance audits performed within the jurisdictional power conferred to SAIs in relation with elements of CA in terms of subject matters, criteria, assurance, …. • It includes assessment of personal liability and conformity of budget execution (but also a priori  and concomitant compliance audit on acts and contracts, about granting effectiveness to those acts and contracts).   • Leads to pronounce judgments and sanctions on responsible people, to refer to entitled bodies facts subject to criminal prosecution.  11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

14. Main specific issues • Subject matter linked to personal liability, set out by laws and regulations. • Covers personal liability with regard to prescription considerations. • Requires to obtain reasonable assurance. • Requires to make sure that the prosecutor has no doubts that evidence gathered on personal liability is sufficient and appropriate for prosecution, opening the process leading to a formal judgment. 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013

15. Redrafting processCall of comments, CAS decision. • A document produced by the 4300 group had been presented to be a call for comments. All members of the CAS are invited to comment upon this document within the redrafting process. • It is given within a table whose form is expected to help examining the out-put of the redrafting work and see the differences that make court model specific. • DECISION IS DELEGATED TO CAS. 11th Meeting of the INTOSAI Compliance Audit Subcommittee September 2013