ISSAI 12 and its practical application, Jan Pieter Lingen, Netherlands

© OECD

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

REGIONAL CONFERENCE FOR

SUPREME AUDIT INSTITUTIONS OF EUROPEAN NEIGHBOURHOOD SOUTH COUNTRIES

ISSAI 12 and its practical application

Introduction to ISSAI 12, Value and benefits of SAIs

Jan Pieter Lingen, SIGMA expert

Algiers 16-17 December 2014

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

2

ISSAI 12 and its practical application

1. Background

2. Structure and linkages

3. Objectives

4. Principles

5. Practical guidance

6. Performance measurement framework

7. Building blocks: discussion themes

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

3

ISSAI 12 and its practical application

1. Background

• From INCOSAI 2007 to INCOSAI 2013

• Independence and audit technique are not

sufficient

• Ultimate role of a SAI is to have impact, to make a

difference to the lives of citizens

• In line with UN Resolution A/66/209

• Only possible if a SAI is seen as an independent

and professional organisation

• Framework for communicating and promoting the

value and benefits of supreme audit institutions

needed

• Leading to ISSAI 12, endorsed in Beijing

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

4

ISSAI 12 and its practical application

2. Structure and linkages (1)

• ISSAI 12 is based on existing INTOSAI

body of knowledge

• Especially Lima Declaration and ISSAIs 10-

40

Accompanied by:

• Guideline on communicating and

promoting the value and benefits

• Performance measurement framework

(still in course of development)

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

5

ISSAI 12 and its practical application

2. Structure and linkages (2)

• Triangle of 3 objectives, all supporting

overall objective of SAIs making a

difference to the lives of citizens

• Each objective with underlying principles

• Each principle with underlying sub-

principles

• Principles and sub-principles often taken

from other ISSAIs

• Difference is perspective: how to add

value, how to make a difference, what is

needed for that

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

6

ISSAI 12 and its practical application

3.1 Objectives ISSAI 12 linked to results

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

7

ISSAI 12 and its practical application

3.2 Objectives and underlying principles

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

8

ISSAI 12 and its practical application

4. Principles (1)

Objective 1: strengthening the accountability,

transparency and integrity of government and

public sector entities

• Independence (ISSAIs 1 and 10)

• Auditing in line with professional

standards (ISSAIs 200-400)

• Enabling discharge

• Public reporting and enabling

accountability (ISSAI 20-8 a.o.)

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

9

ISSAI 12 and its practical application

4. Principles (2)

Objective 2: demonstrating ongoing

relevance to citizens, parliament and other

stakeholders

• Responsiveness

• Communication (ISSAI 20-8 a.o.)

• Credible source of objective insight and

guidance

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

10

ISSAI 12 and its practical application

4. Principles (3)

Objective 3: being a model organisation

through leading by example

• Transparency and accountability (ISSAI

20)

• Good governance (INTOSAI GOV’s)

• Compliance with code of ethics (ISSAI 30)

• Service excellence and quality (ISSAI 40)

• Capacity building through promoting

learning and knowledge sharing (INTOSAI

Guide)

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

11

ISSAI 12 and its practical application

5. Practical guidance

INTOSAI Guideline on communicating and

promoting the value and benefits of SAIs:

• Focusing on communication strategy and

instruments and tools for communication

• Includes instruments and tools to promote

stakeholder participation in auditing

process

• Concrete examples of SAIs’ efforts to use

these instruments and tools

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

12

ISSAI 12 and its practical application

6. Performance measurement framework

To assess SAI performance against ISSAIs, and

SAI contribution to sound financial management

and accountability

7 domains, 24 indicators:

A. Reporting

B. Independence and legal framework

C. Strategy and organisational development

D. Audit standards and methodology

E. Management and support structures

F. Human resources and leadership

G. Communication and stakeholder management

A jo

int in

itia

tive

of th

e O

EC

D a

nd

th

e E

uro

pe

an

Un

ion

,

pri

ncip

ally fin

an

ced

by th

e E

U

13

ISSAI 12 and its practical application

7. Building blocks: discussion themes

• Independence and legal framework

• Audit standards and audit process

• Reporting, communication and impact

• Organisation, management and professional

development

All from perspective of how to maximize impact