European Union Republika Slovenija Homologues Group Meeting Slovenia

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Internal Quality Assessment Process Ljubljana, 12 -13 October 2009 Ulrika Bergelv Audit Director The Swedish National Financial Management Authority, ESV Ljubljana, 12 -13 October 2009 1

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Internal Quality Assessment Process 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Introduction Standards Process and Product Quality Organisation Methodology Quality Assessment Milestones Quality Assessment of other bodies Objectives To be developed Conclusion Ljubljana, 12 -13 October 2009 2

European Union Homologues Group Meeting Slovenia, October 2009 Republika Slovenija Introduction 1(3) Sweden: Most countries: Minister Minister stry Ministry Ministry Department s Departments Cabinet (22 ministers) Ministries (12) Agency ESV Agency - Independent management in relation to other authorities and to the Government. Ljubljana, 12 -13 October 2009 3

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Introduction 2(3) Audit Authority for 7 EU-funds/19 programs; • European Regional Development Fund – ERDF • European Social Fund- ESF • European Fishery Fund - EFF • External Borders Fund - EBF • European Fund for the Integration of Third Country Nationals - EIF • European Return Fund • European Refugee Fund Winding-up body closure of Structural Funds 2000 -2006 (partly) Certification body for; • European Agricultural Guarantee Fund - EAGF • European Agricultural Fund for Rural Development – EAFRD Ljubljana, 12 -13 October 2009 4

European Union Homologues Group Meeting Slovenia, October 2009 Republika Slovenija Introduction 3(3) Audit Director Senior Audit Manager ESF Senior Audit Manager ERDF/ mainstream Senior Audit Manager ERDF/ Interreg Quality and Methodology Manager Senior Audit Manager EAGF EAFRD Senior Audit Manager EFF SOLID Ljubljana, 12 -13 October 2009 5

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Standards 1(2) • IIA AS 1300, 1311 • IAASB ISQC 1 (100 pages) Proposed Redrafted International Standard on Auditing and International Standard on Quality Control ISA 220 (Redrafted), Quality Control for an Audit of Financial Statements • ISO 9001: 2008 Management System for Quality Process Ljubljana, 12 -13 October 2009 6

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Standards 2(2) ISO PDCA life cycle • Plan • Do • Check • Act Ljubljana, 12 -13 October 2009 7

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Process versus Product Quality Process Quality Product Quality - Audit Reports. . . Ljubljana, 12 -13 October 2009 8

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Organisation - Responsibilities Audit Director Senior Audit Managers Auditors Quality and Methodology Manager Ljubljana, 12 -13 October 2009 9

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Methodology High quality through audit tools and work processes: – Audit Manual – Standardized work processes – Templates, checklists and documentation – IT-system for management of project audits Ljubljana, 12 -13 October 2009 10

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Quality Assessment Milestones 1(3) Strategy: Presented by a Senior Audit Manager – decision by an Audit Director Operative Audit Plan: Presented by a Senior Audit Manager – decision by an Audit Director Ljubljana, 12 -13 October 2009 11

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Quality Assessment Milestones 2(3) For each audit: • Planning phase - Planning document and checklists/work programs presented by Senior Audit Manager – decision by Audit Director • After completion of field work - QA by Senior Audit Manager (Next page) • Before reporting - Draft audit report presented by Senior Audit Manager - Contradictory process with auditees • Reporting - Final audit report presented by Senior Audit Manager - decision by Audit Director • After closing of the files (sample based) - QA by the Quality and Methodology Manager Ljubljana, 12 -13 October 2009 12

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Quality Assessment Milestones 3(3) QA template by Senior Audit Manager (examples of questions) Planning phase: • Review of planning documents (i. e. Audit plan, Planning Memo) • Signed planning documents Documentation: • Proper use of templates • Referencing • “Audit trail” from planning documentation audit report Checks: • Signed work papers • Documentation of audit evidence • Contradictory procedures performed Audit report: • Assessment of the Management and Control Systems • Conclusions on Key Requirements • Report properly signed by Senior Audit Manager and Audit Director Ljubljana, 12 -13 October 2009 13

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Quality Assessment of Other Bodies Ex ante • Independence • Competences • Objectivity Post • File reviews Ljubljana, 12 -13 October 2009 14

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Objectives Improved Management and Control Systems Effective audit organisation compared to other audit organisations Ljubljana, 12 -13 October 2009 15

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 To be developed Quality parameters – Effective audit: • “Impact” measurement • Recommendations – implementation • Cycle time…… Ljubljana, 12 -13 October 2009 16

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Conclusion High quality – Right quality Not just by chance Have a clear objective ! Ljubljana, 12 -13 October 2009 17

European Union Republika Slovenija Homologues Group Meeting Slovenia, October 2009 Thank you for your attention! ulrika. bergelv@esv. se +4686904469 Ljubljana, 12 -13 October 2009 18