Revision of ISSAI 5422“An Exercise of Reference Terms to Carry out Performance Audit of Public Debt”

10.2014 | WGPD

Mr. Roberto Salcedo

Deputy Auditor General of Mexico

Annual Meeting of the Working Group on Public Debt

October 22-24, 2014

Seoul, Korea

ASF | 2

2004 – 2006

Developed by the former Public Debt Committee (now WGPD)

Leader: SAI of Mexico

Project on terms of reference for public debt performance audits

First draft presented during the 2004 Meeting held in Moscow

Progress reports:

2005 meeting (Sofia)

2006 meeting (Buenos Aires)

ISSAI 5422An Exercise of Reference Terms to Carry out Performance Audit of Public Debt

ISSAI 5422

ASF | 3

An Exercise of Reference Terms to Carry out Performance Audit of Public Debt

Presented for approval to the 56th INTOSAI Governing Board Meeting (Mexico, 2007)

Final endorsement: XIX INCOSAI

(November 2007, Mexico)

ASF | 4

Lines of work

(1) terms to be considered by an auditor to test whether the public debt and its relating concepts have been defined and classified clearly and according to hermeneutical standards.

(2) items that should be included in the normative and legal framework of a country in order to provide the debt management with consistency and governance

(3) essential aspects needed to determine whether debt management is carried out in accordance with the best practices.

ISSAI 5422An Exercise of Reference Terms to Carry out Performance Audit of Public Debt

ASF | 5

Lines of work

(4) need of undertaking a vulnerability and sustainability analysis by means of static and dynamic indicators.

(5) assessment that should be carried out by the auditor to give an opinion on the behavior of the institution in charge of debt management and its staff (competences, training, experience, code of ethics)

(6) government obligation (a) to notify and disclose information on public debt, liabilities and associated risks, and (b) to issue reports.

ISSAI 5422An Exercise of Reference Terms to Carry out Performance Audit of Public Debt

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Basic Information

It is not and evaluation on the social and economic impact in indebted countries.

This document proposes a framework that could serve as guideline and trigger the conduction of this kind of audits.

Reference terms on: (1) debt structure, (2) risk assessment, (3) prudent practices on debt management, and (4) recording, control and monitoring.

ISSAI 5422An Exercise of Reference Terms to Carry out Performance Audit of Public Debt

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Official Product Reviewing Team

Comments

ISSAI 5422 – An Exercise of Reference Terms to Carry Out Performance Audit of Public Debt.

Mexico • Need to make reference to recent crisis: Greece, Spain and Portugal.

ISSAI 5422An Exercise of Reference Terms to Carry out Performance Audit of Public Debt

Revision of ISSAI 5422“An Exercise of Reference Terms to Carry out Performance Audit of Public Debt”

10.2014 | WGPD

Mr. Roberto Salcedo

Deputy Auditor General of Mexico

Annual Meeting of the Working Group on Public Debt

October 22-24, 2014

Seoul, Korea