Enhancing Audit Quality and Impact with ISSAI 140
Importance of audit quality for credibility, stakeholder confidence, and overall impact. Objective of SAIs to implement quality management system like ISSAI 140. Steps to implement ISSAI 140, organizational requirements, risk assessment, governance, and leadership responsibilities. Overview of quality control and management systems, evaluation process, and monitoring. SAIs must design, implement, and operate a comprehensive quality management system for their professional output to meet quality objectives and ensure effective operations.
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INTOSAI CAPACITY BUILDING COMMITTEE ANNUAL MEETING 20 23 JUNE 2023 DAY 2 21 JUNE 2023 SESSION 4: QUALITY AND HIGH-IMPACT AUDITS Ms Laura Leka IFAC Alan Findlay PSC
Importance of audit quality to enhance the credibility of SAI audit work; to enhance the confidence of stakeholders and users of SAI audit reports; to enhance reliance on work done by SAIs; and to contribute to overall audit impact.
The objective of any SAI To design, implement and operate a system of quality management that is appropriate to its mandate and circumstances, and provides it with reasonable assurance that: a. It will achieve its strategic objectives through high quality work; and New ISSAI 140 b. the SAI and its personnel conduct engagements and fulfil their responsibilities in accordance with professional standards and applicable legal and regulatory requirements.
Implementing ISSAI 140 (in three easy steps ) 1. Determine the (four) Organisational Requirements of ISSAI 140 2. Assess the current SAI situation 3. Identify the actions available to the SAI.
How do you feel about the new quality management standard? How confident is your organisation about implementing the new ISSAI 140? A. Fairly confident we will manage B. Wait to see the final text of ISSAI 140 before making that decision C. Sounds like a lot of extra work D. What is ISSAI 140 anyway?
Overview of the requirements between the quality control and quality management systems Risk assessment process Governance and leadership Leadership responsibilities Relevant ethical requirements Relevant ethical requirements E V A L U A T I O N Acceptance, initiation, and continuance Acceptance and continuance Performing audit engagements Engagement performance Resources Human resources Information and communication Monitoring Monitoring process
Determine the organisational requirements of ISSAI 140 TheSAI shall design, implement, and operate a system of quality management covering all of its professional output; design and implement a risk assessment process to establish quality objectives; establish a monitoring and remediation process; and evaluate and report on the operation of the system of quality management
Assess the current situation in the SAI part 1 The SAI shall design, implement, and operate a system of quality management that covers all its professional output. Between 59% - 86% of SAIs already have aspects of quality management in place
Assess the current situation in the SAI part 2 The SAI shall design and implement a risk assessment process to establish quality objectives Does your SAI already define i) quality objectives, and quality risks? Does your SAI already identify and assess them?
Assess the current situation in the SAI part 3 The SAI shall establish a monitoring and remediation process Does the SAI have an independent function that monitors the operation of quality management system? Does the SAI have defined processes in conducting the monitoring? Does the SAI have monitoring tools covering the review at the institutional level and inspection of completed audits?
Assess the current situation in the SAI part 4 The SAI shall evaluate and report on the operation of the system of quality management Does the SAI have mechanisms in place to assess its existing quality management system? Does such mechanism provide conclusions on whether the quality management system is functioning as intended? Is there an established process in conducting the evaluation?
Messages to take away Don t be overwhelmed by the idea of change: Few actual changes between requirements for old and new ISSAI 140 Elements of Quality Management already present in many SAIs Have the conversation with relevant staff See how IDI can help get involved
