Reporting on internal control in the light of the results of the survey

of the Subcommittee on Internal Control Standards

Maria SiekluckaSenior Public Audit Expert Department of Environment

May 2014

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Strenght of accountability

Changes in the public service environment

Unparalleled challenges faced by the public sector

Strong commitment to integrity, good governance, ethical values, transparency and the rule of law

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Transparency and reporting – the way of achieving good governance and delivering

effective accountability

Internal control in public sector organisations needs to be relevant to specific characteristics of these organisations and to the changes faced by the public sector

Slow shift of focus from purely financial aspects related to the area of management and planning

Growing importance of using appropriate methods and tools to target effects, outcomes and to proceed with uncertainty

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The basics of reporting on internal control

in the light of INTOSAI GOVs

INTOSAI GOV 9100 – Guidelines for Internal Control Standards for the Public Sector

INTOSAI GOV 9110 – Guidance for Reporting on the Effectiveness of Internal Controls: SAI Experiences in Implementing and Evaluating Internal Controls

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Survey – aim and scope

The aim: the extent to which internal control reporting by public sector entities exists, the forms and the underlying frames of reference the SAIs’ involvement in reporting on internal controlupdating INTOSAI GOV 9110 on internal control reporting

The scope:legal and organisational

framework for reporting on internal control

the scope of internal control assessment and reporting on internal control by public sector entities

assessment of reports on internal control and auditing of internal control

an opinion on the revision of INTOSAI GOV 9110 Guidance for Reporting on the Effectiveness of Internal Controls: SAI Experiences in Implementing and Evaluating Internal Controls

Answers from 64 INTOSAI members from all over the world

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Conclusions

broad and explicit distinctions in the scope and range of the legal obligation regarding reporting on internal control in the public sector

common approach among public sector entities to assess their internal control systems on a regular and systematic basis

involvment of internal auditors and visible commitment of the national SAI in the assessment of reports on internal control and auditing of internal control positive

opinion on revision of INTOSAI GOV 9110

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Weak points of reporting

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narrow scope and range of obligation to report

in most of the countries established reporting to the public only in a

few countries

low popularity of the self-assessment attitude

focusing on compliance with legal acts and regulations rather than on the effectiveness of the implementation of objectives and tasks performance

discussion character of the INTOSAI GOV 9110

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Further improvement of reporting

revision of INTOSAI GOV 9110

raising awareness about the importance and relevance of effective internal control in public sector

increasing SAIs’ role in promotion of good practices in the assessment of reports on internal control and auditing of internal control

underlining the necessity to fulfil accountability obligations

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Thank you