Overview of general comments received on the exposure ... ?· Overview of general comments received…

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  • Overview of general comments received on the exposure drafts of ISSAIs 3000-3200

  • SAI/org Paragraphnumber Commentontheparagraph Decision ArgumentsResponsetotheSAI

    Sweeden GeneralWhyhavethreedifferentdocuments?Itbecomesalotofrepetitions.

    Sweeden General

    Becarefulhowyouusesanddefinewords.sometimesitseemsthatyouusesdifferentdefinitions.ForexamplebenchmarkisdefinednarrowinthedraftISSAI3200asoneexampleoncriteria"Benchmarkssameentity,differentyears;differententitiessameactivity"atoneplace.AtanotherplaceinthedraftISSAI3200itisdefinedasasynonymtocriteria"Alternatively,todefineandobtainsupportforwellfoundedandrealisticcriteria,itmayprovehelpfultodiscussbenchmarkswithstakeholdersanddecisionmakers."InthedraftISSAI3000itisdefinedasasynonymtocriteria."Auditcriteriaarethebenchmarksusedtoevaluatethesubjectmatter."

    Sweeden General

    SometimesyouusestheauditorswhenthedecisionisactuallyataSAImanagementlevel,sometimesyouuseauditorswhenitconcernstheindividualauditororteam.Forexampleyoustate"Theauditorshallgivetheauditedentitytheopportunitytocommentontheauditfindings,conclusionsandrecommendationsbeforetheSAIissuesitsauditreport"Howdoyoudefineauditorhere,IbelievethattoreleasethedraftreportwithrecommendationsshouldbedoneonahigherlevelintheSAIthattheauditorinateam.

    GAO Cover

    ConsistencyTitleofISSAI3000isnotconsistentwithreferencesinbody(seepara1,2,7,8).Suggestrevisingtitleto:InternationalStandardforPerformanceAuditing

    GAO Moreinformation

    TheintroductiontoISSAI3200statesthatitisbasedonbestpracticesofSAIswithlongtraditionsofperformanceauditing.However,thereareanumberofareasthatISSAI3200issilentonwhicharewelldevelopedbysuchSAIs.Wewouldsuggestthatthecommitteeconsideraddingadditionalinformationontopicssuchas:(1)internalcontrols,(2)ITcontrols,(3)fraudandabuse,and(4)usingtheworkofothers.

    Courdescomptes

    General3000,3100,3200

    and4000

    Thefirstgeneralobservationthatmightbemadeisacommondefectininternationalauditstandards:thelackofconciseness.Thetexts,sincetheyarelevel4(fourdigits),distinguish"requirements"and"explanations"andthelackofconcisenessisinregardtothe"explanations":toomanytermsareusedbutarenotalwaysproperlydefinedorreallynecessary.

  • Courdescomptes

    General3000,3100,3200

    and4001

    Thesecondgeneralobservationisthelackofconsistencybetweenthe3000seriesofstandardsandISSAI4000:someofthesameconceptsarecoveredbyprovisionswordedinverysimilar,butnotidentical,terms.Theorderofpresentationofsomeheadingsisnotthesamefromonetoanotherwhereastheheadingsare.

    Courdescomptes

    General3000,3100,3200

    and4002

    Thelastgeneralobservationisthedifferencebetweenstandard4000,themostsuccessful,andwhichisasingledocument,andthestandardsinthe3000series.ItishardtounderstandwhyISSAI3000isseparatefromISSAI3100;itwouldbebettertomergethetwodocuments.

    VietnamMethodologyfor

    developingtheISSAI3000series

    IrealisedthatthedraftseriesrepeatedasmanywordsaswritteninISSAI300aswellasamongthemselves(ISSAI3000withISSAI3100,ISSAI3100andISSAI3200).Tomyknowledge,thoserepetitionswouldincreasevolumeoftheserieswithoutanynewinformation.InordertokeepISSAI300andtheISSAI3000seriescoherentandconcise,itshouldbecleartoindentifyhowtheISSAI3000seriesshouldbedeveloped.Theseriesshouldbereadinorder,i.e.ISSAI300priortotheISSAI3000seriesandISSAI3000priortoISSAI3100andISSAI3200.ConceptsthatalreadydisplayedinISSAI300shouldnotbeunnecessarilyrepeatedinISSAI3000.IsuggestthatitshouldbriefmentionthemainideathatwillbeclarifiedorexplainedinISSAI3000.Likewise,thesamemethodologyshouldbeappliedwhendevelopingISSAI3100andISSAI3200withfoundationofISSAI3000.

    Vietnam

    ConsistentlyusecommontermsthroughtheISSAI

    3000series

    In3000/113and3200/25,auditplanisusedastheresultofplanningphase.However,in3000/114and3200/2728,perspectiveauditdesignandauditproposalareusedwiththesamemeaning.Differently,auditplanisusedasasynonymofauditproceduresin3000/111.

    Othercommontermsshouldbeconsideredsuchas:istheauditprogrammearesultofthestrategicplanningprocess(ISSAI3200/14)orakindofdocumentinplanningaparticularaudit(practicesinVietnamandCanada).

    IsuggestthatsomecommontermsshouldbeusedinsuchhighlystandardiseddocumentslikeISSAIs.

  • Vietnam

    Aglossaryoftermsforperformanceauditingshouldbe

    added

    Astheconsequenceof(2),aglossaryoftermsshouldbeaddedtoISSAI3000toclarifyandprovidetheconsistentunderstandingoftermsaswellasavoidconfusing,especiallyforcountriesnotusingEnglishasthefirstlanguage.Forsomealternativeterms,theyshouldalsobeincludedintheglossary.

    ExamplecouldbeseeninISSAI1230:itisshowedinthedefinitionofauditdocumentationthatworkingpapersorworkpapersaresometimesused.

    Japan3000,3100and3200

    General

    Spellcheckingandeditingfontstyleareneeded.SpellinginAmericanEnglishorBritishEnglishshouldbeunified.

    Japan3000,3100and3200

    General

    Paragraphnumbershouldbeassignedbasedon"Requirement"insteadofeachsentences/paragraphs.Itwouldmakedefinitionsof"Requirement"clearerandalsohelpreadersbetterunderstandthestructure(relationbetween"Requirement"and"Explanation"/"Goodpractice")oftheISSAI.ThisstyleisadoptedinISSAI10.

    Japan3100and3200

    General

    Basedon"Requirement"ofISSAI3000,"Goodpractice"ofISSAI3100and3200areorganized,however,itisnotclearwhich"Requirement(s)"ofISSAI3000"Goodpractice(s)"ofISSAI3100and3200referto.Therefore,same"Requirement"numbersshouldbeassignedamongISSAI3000seriesinordertomakeitclearerthatISSAI3000and3100&3200arelinked.

    MaltaGeneral3000

    AfurtherrequirementthatmaybeconsideredisthattheauditoristoreportifacurrentGovernmentactivityorprogrammeisinhisopinionunsustainableeconomically,sociallyorenvironmentally.Thisrequirementwouldbetheequivalentofagoingconcernqualificationinafinancialaudit.

    MaltaGeneral3001

    Guidancecouldbeincludedoninstanceswhenexternalauditorsmayrelyonpreviousperformanceauditworkcarriedoutbyotherauditorsincludingtheinternalauditfunctionwithinanorganisation.

    NorwayGeneral3000

    Theuseoftheword"requirement"inthisdocumentisconfusing.Itshouldbemadeclearintheintroductionthatthisdocumentdoesnotaddanynewrequirementsbutjustgothrougheachrequirementanddescribegoodpracticeforthatrequirement.

    NorwayGeneral3200

    WewouldsuggestthatthestructureofthisdocumentfollowsthestructureofISSAI3000andgivefurtherinformationontherequirementscoveringtheauditprocess.Webelievethatthroughscoping,weidentifythebasistoperformanperformanceaudit.

  • Brazil GeneralConsiderinformingthesourcesofinformationbeloweachtableandboxinthetext

    Swiss General

    WefindthatthenewalignmentwithISSAI300isappropriateandwenoticedthatthestandardsforperformanceauditinggetclosertothestandardsforevaluations.Inthisperspective,wethinkthattheINTOSAIWorkingGrouponEvaluationanditsexposuredraftofINTOSAIGOV9400entitledGuidelinesontheevaluationofpublicpoliciesshouldalsobeintegrated/referencedinthisprocess.

    Swiss GeneralItisinouropinionveryimportanttoestablishalinkbetweenISSAI300/3XXXandINTOSAIGOV9400inordertoavoidanymisunderstandingforperformanceauditorsandevaluators.

    Swiss General

    Throughourcriticalreadingwegottheimpressionthat(too)manyrepetitionsoccurbetweenthesecondandthirdlevelsandwithinthethirdlevel.Itissometimesdifficulttofindrapidlytherespectivestandardsorguidelinesinthefourdocuments(300,3000,3100,3200).Withregardtothis,makingreferencesbetweenthesecondandthirdlevelstructures,aswellaswithinthethirdlevel,couldinourviewbringaddedvalueandfacilitatethenavigationbetweenthem.

    Swiss GeneralThementioningofQualityControl,IndependenceandEthics(ISSAI11,30and40)isnotnecessarybecausetheyaremandatoryalreadyatthesecondlevel.

    SwissGeneral3200

    Maybeacompleteexampleofoneormorebestpracticeswouldhelpperformanceauditorstoworkwiththisguideline.

    NetherlandsGeneral

    300,3100,3200Itwouldbemorereaderfriendlytousethesamenumbersforthestandardsin3000,3100en3200.

    NetherlandsGeneral3000

    Level4oftheISSAIsareAuditingGuidelinesaccordingtowww.issai.org.ISSAI3000arenoguidelinesbutstandards.Thisinitselfisok.ButitmeansthattheLevel4statement(AuditingGuidelines)shouldbechangedinordertopreventconfusion.

    NetherlandsGeneral

    3000and3100

    Ageneralflawin3000(and300)isthattheonlypossibleresultofaperformanceauditseemstobeareport.Thatclosesthedoorforinnovationanddevelopmentslikeonlinepublishing.AnditiscontradictorytoISSAI300083.Westronglyadvisetomakeroomin3100forothermeansofpresentingtheresultsofauditwork.

  • Thailand General

    TheExposuredraftsofISSAI3000serieshaveprovidedstandardsandguidelinesforperformanceauditingandcanbedividedintothreeparts.ThefirstpartisISSAI3000whichclearlydefinesgeneralrequirementsbyprovidingeachofitsexplanationandhowtoimplementsuchrequirements.While,ISSAI3100asasecondpartandISSAI3200asthethirdpart,presentguidelinesorgoodpracticesonconceptsandprocessesofperformanceauditing.Asaresult,Ithelpsuserstogetbetterunderstandingthanthecurrentversion.However,wewouldliketorecommendthatstandardsandguidelinesshouldprovideadditionalinformationtobeusefulforusersandalsotheaccuracyofthecrossreferencebetweenISSAIsshouldbeverified.Theadditionaldetailsareasfollow:1.Theauditmandateaswellasindependenceandethicsaretheessentialrequirementsforperformanceauditing.ISSAI3000andISSAI3100shouldprovidemoreexplanationonhowtheauditmandatewillaffect,totheextentof,theaudittowhichaSAIcanapplytopublicsectorauditing,conditionsofperformanceauditing,ortheinitiativeofaudit,thatSAIcanapplyinordertoconductperformanceaudit(RefertoISSAI3000/2.1,currentversion)2.RegardingISSAI3100paragraph23referredtotheauditorsindependence,itshouldbemoreexplanationforauditorsonhowtoconfirmtheirindependence,bothbeforecommencingtheauditworkandthroughouttheaudit.3.InISSAI3100paragraph3943mentionedabouttheSubjectmatterwhichmightnotbeclearlyillustrated.Theexampleshouldbegivenmoreinorderthattheuserwillbeabletogetbetterunderstanding.Forexample,ISSAI300statedthatExamplesofSubjectmattermightbeservicedeliverybytheresponsiblepartiesortheeffectsofgovernmentpolicyandregulationsonadministration,stakeholders,businesses,citizensandsociety.Inaddition,thecontentinparagraph41maynotdirectlyrelatetogoodpracticeofSubjectmatter.Itmightbemorerelevant,ifrefertothecontentinISSAI3200paragraph43.4.Thestandardshouldelaboratemoreaboutauditthemesandauditareasandalsotheirrelevanceinrelationtoplanningprocessorothersections.5.Thereferenceswithinguidelinesaimtobeusefulforthestandardusersbutduetotheerrorsofthecrossreferencesbetweenthecontentinguidelines,thereviewprocessforthecorrectnessofthecrossreferencesisnecessary.Forexample,ISSAI3100page3,thecontentfromtheendofparagraph14shouldbereferredtoparagraph59.Moreover,thecontentinparagraph126oftheISSAI3200shouldbereferredtoparagraph92.

  • Latvia General

    Ingeneral,afterevaluatingtheexposuredrafts,itisnotclearwhythereisadifferentapproachtothestandards,forexample,whyISSAI4000,inconjunctionwithexplanationofrequirements,doesnotincludeexamplesofbestpractices.Similarly,allthreestandardsISSAI1000,ISSAI3000andISSAI4000areverydifferentbytheirsizeandstructure.Thisapproachcanleadtoconfusionamongusersofthestandardsastowhethercomplianceandperformanceauditsaresimplerthanfinancialauditsandiftheystatelessrequirementsthanstandardsforfinancialaudits.OnISSAI3000,3100andISSAI3200evaluatingthestandardsandguidelinescontainedinthedrafts,weconcludethatingeneraldocumentsarewellstructured,understandableandapplicabletoperformanceaudits.Webelievethattheapproachbyseparatingthesubstantiveprovisionsfromtheproceduralprovisionsisuserfriendly,aswellasthereiterationofthestandardrequirementsintheguidelineswillfacilitatebetterunderstandingofthestandards.However,wewanttodrawattentiontotheneedtoavoidcertaintermsofgeneralization/nonspecification,suchastheuseoftheterm"professionalstandards"withoutspecifyingwhichexactstandardsaremeant(suchasISSAI3000/75,3000/82,3100/118,3100/126).OnISSAI4000evaluatingtheinformationcontainedinthedraft,wehavetoconcludethatingeneralitdoesnotimproveorcomplementthealreadyexistingISSAI400,thereforeweproposetoconsiderthepossibilitytostructureanddraftISSAI4000similarlyas3000ISSAI(ISSAI3100andISSAI3200).Additionallywewouldliketodrawyourattentiontotheneedtoavoidambiguousinterpretationoftherequirementsrelatingtothe"Auditsampling",because,forexample,explanationincludedin4000/137and4000/141suggeststhattheonlyapplicablemethodistousestatisticalsamplingmethods.

    Portugal General

    AsthetitleofEDISSAI3100and3200clearlyidentifiesitscontents,itissuggestedthatalsoEDISSAI3000mightbebetterreferencedandbeaddedtothesubtitlegeneralrequirements,thus:ISSAI3000StandardforPerformanceAuditinggeneralrequirements .

    IDI General

    Level4standardsaretobeusedbySAIsdirectlywhentheyadopttheoptionofreferringtothemdirectly.InitscurrentformISSAI3000cannotbeuseddirectlyattheauditpracticelevel.Itlacksthedetailsnecessarytoguideapractice.AssuchtheoptionprovidedbyISSAI100isnotarealoptionincaseofPAstandards.

    IDI GeneralIslevel4supposedtobeamixofstandardsandguidance?IsitagoodideatokeepstandardsandguidanceatthesamelevelintheISSAIframework?

  • IDI General

    ThereisaneedtobeveryclearontheconceptsofassuranceandconfidenceinPA.Idonotseethisclarityinthecurrentdraft.Iamalsoconcernedwiththeinclusionoflimitedassurance,especiallyinthecontextofthedefinitionofassuranceinPA.Tome,thesearekeyconceptsthatshouldhavebeenincludedintheexplanationsin3000,notin3100.

    IDI GeneralThereisaneedtodistinguishbetweenrequirementsthatrefertoanauditorandrequirementsthatrefertoaSAI.

    IIA General

    Considerelevatingsomebestpracticestorequirements.TheIIAbelievesthat,collectively,ISSAIs3000,3100,and3200provideasolidfoundationforPerformanceAuditing.ISSAI3000issufficientlygenericthatapplicationofthePerformanceAuditStandardcanbetailoredtomeetthevaryingneedsofSAIs.However,thegenericnatureofthestandardcanbeconstruedtopotentiallysetalowbarforcompliance.Forexample,ISSAI3100recommendsacontinuousprofessionaldevelopmentprogram,andmeaningfulmonitoringandreportingonthequalityassuranceandimprovementprogram,asbestpractices.Tostrengthenthestandard,INTOSAIshouldconsiderelevatingthesebestpracticesfromrecommendationstorequirements.

  • IIA General

    Makeadistinctionbetweenthetermsindependence,impartiality,andobjectivity.ISSAIs3000andISSAI3100havemultiplereferencestothetermsindependence,impartiality,andobjectivity.Inreviewingthesedocuments,andISSAI30CodeofEthics,Chapter3Independence,ObjectivityandImpartiality,thetermsobjectivityandimpartialityareusedinterchangeably.Inothercontexts,weinferthatindependenceandobjectivityarerequiredconditionsforimpartiality.However,thedistinctionbetweenindependenceandobjectivity/impartialityisnotmadeclear.Whilerelated,webelievethereisafundamentaldifferencebetweenbeingindependentandbeingobjective/impartial.TheIIAdoesnotusethetermimpartiality,butourInternationalStandardsfortheProfessionalPracticeofInternalAuditing(Standards)distinguishesbetweenthetermsindependenceandobjectivity.TheIIAsStandardsdefineindependenceas:Thefreedomfromconditionsthatthreatentheabilityoftheinternalauditactivitytocarryoutinternalauditresponsibilitiesinanunbiasedmanner.Therefore,theabilitytobeindependentisgenerallyafunctionofthereportingrelationship(s).TheIIAsStandardsdefineobjectivityas:Anunbiasedmentalattitudethatallowsinternalauditorstoperformengagementsinsuchamannerthattheybelieveintheirworkproductandthatnoqualitycompromisesaremade.Objectivityrequiresthatinternalauditorsdonotsubordinatetheirjudgmentonauditmatterstoothers.Wesuggestthattheabilityt...