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STRATEGIC PLANNING The SAO of the Slovak Republic has the ambition to fulfill the following objectives in carrying out audit activities in strategic areas:
be a respected national authority for evaluating public policies implemented;
be a key actor of the state, which gives a fair picture and objective assessment of public policy makers - public administration entities in terms of the financial situation, compliance with the applicable frameworks in the implementation of financial operations and financial reporting procedures;
provide follow-up analyzes of the economy, efficiency and effectiveness of the public authorities 'and public authorities' practices in achieving their objectives.<br>
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In 2016, the SAO of the SR joined the "Best of the Worlds - Value for Money in Slovak Public Policy" initiative.
This initiative was implemented by the Ministry of Finance of the Slovak Republic.<br>
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Strategic areas of focus of audit activity
of SAO SR for 2018 - 2020 Education, research, development and innovation
Effective and transparent public administration
Health
Employment and the business environment
Sustainable consumption and production, energy efficiency and environmental sustainability
Sustainable Public Finance and Fiscal Policy
Social policy
Transport Infrastructure and Information and Communication Technologies (ICT)
Defense and security<br>
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PLANNING The Planning phase is the most important phase in whole audit process. It is very important for ensuring the right and effective management of audit projects and also for achievement of purpose of the audits, achievement of added value of audits, and expected audit results.
- Proposal of the Audit topic
- Project of the Audit Project<br>
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AUDIT TOPIC Annex 1 (Guideline of the Audit planning - 2018)
area from Strategic plan of the Audit activity (2018 – 2020)
up-to-date and relevance of the Audit topic
possible added value
the timeliness
possibility to audit the area (legal conditions – legal mandate, also professional knowledge of the auditors)<br>
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AUDIT TOPIC When is proposal of Audit topic prepared
During previous year till august
WHO prepars proposal of Audit topic?
Audit Departments, Strategy Department, and Branches<br>
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AUDIT TOPIC WHO recommends the proposal Audit topics to a College (and assess)
Planning board (5 members – President´s Advisor, Strategy Department, Audit Departments and Branches (1 representative of Branches)
WHO approves Audit topics
College (President, Vice – Presidents, President´s advisors, 4 general directors, 1 director (representative for Branches, Internal Auditor)<br>
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AUDIT PROJECT WHY we prepare Audit Project
for detailed elaboration of the Audit topic proposal
also for clarification common ideas and expectations between gestor an college (purpose, added value, expected conclusions)<br>
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AUDIT PROJECT WHEN is Audit project prepared
After approving the proposal of the topic by the collages
This year: do 15.10.2018<br>
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AUDIT PROJECT WHO is preparing Audit project?
audit team manager in cooperation with the director of relevant audit department/ relevant branch<br>
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AUDIT PROJECT WHO approves Audit Project
The College<br>
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AUDIT PROJECT WHO assess Audit Project
selected College members<br>
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CONTENT „Audit Project“ basic information about the topic
risk analyses (risk of topic choosing)
audit purpose, added value
audit scope<br>
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CONTENT „Audit Project“ audit risk
audit type
number of auditors and audit entities
audit entities – specified and non specified
time requirement<br>
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BASIC INFORMATION ABOUT THE TOPIC Information from relevant documents (strategy, analyses, ....) where we can identify potential risks from:
Opinions, analyses, and the other outcomes of the relevant organisations (Council for budget responsibility)
Analyses and data about Public administration budget (etc. Registry of financial statements (RUZ), ...)
Other relevant documentation, for assessing of public policies (outputs of some analytical units (Value for Money unit (MF SR)
Documents of other SAI (EUROSAI, INTOSAI database)
Media outputs, ...
Define materiality through the indicated risks
Define stakeholders (use stakeholder mapping, RACI analysis ...) and identify key players<br>
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RISK ANALYSES defined risks should be set up so that the subject of the audit can be defined,
no more than four major risks pointing to failure of the system<br>
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AUDIT PURPOSE, ADDED VALUE To define expected added value of the Audit:
improving process setup and thereby improving the organization's performance,
improve the audit entity management
speeding up the implementation of the program / policy,
achievement of the goal in the project but also in strategy, program,
improving financial reporting, e.g. to ensure the accuracy of financial operations, reporting, and so on. (for financial audit),
defining good or bad practice.
Audit can indicate that identified risk was not confirmed, also new risk can be defined.<br>
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AUDIT SCOPE - Define audit scope (based on the risks defined in the topic proposal)
- Define the "first level" of audit scope (all will be more detailed in Audit Programme)<br>
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AUDIT RISK Sufficiently and demonstratively define what could influence the audit phases:
planning and preparation
performance and
reporting
Define risks according to ISSAI standards implemented in internal regulations and procedures:
Inherent risk
Control risk
Detection risk
Audit risk
-<br>
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PLANNING PROCESS Audit topic (August)
Audit project (September)
Planning list (November)
Plan of the audit activity (December)<br>
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QUALITY ASSURANCE Audit topic – Planning Board
Audit project – selected College members and president of Planning board)
Planning list – College
Plan of the audit activity – approved by College and signed by President<br>
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QUALITY ASSURANCE Audit topic – Planning Board
Audit project – selected College members and president of Planning board)
- Check lists - Score Sheets for assessors<br>
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Thank you
Lubica.hajduckova1@nku.gov.sk<br>
