INTOSAI

The International Organisation of Supreme Audit

Institutions (INTOSAI) operates as an umbrella
organisation for the external government audit
community. At present INTOSAI has 190 Full
Members and 4 Associated Members.

On 22 Dec 2011 the 66th United Nations

General Assembly adopted the resolution
promoting the efficiency, accountability,
effectiveness and transparency of public
administration by strengthening supreme
audit institutions.
 INTOSAI
Congress
Governing Board, 18 members
General Secretariat in Vienna, Austria
Regional Groups
Committees
Working Groups
 INTOSAI CONGRESS
The supreme organ composing of all
Members.
Holds regular meetings once in every three
years -chaired by the hosting SAI
First was in 1953 in CUBA
Next (21st) is in CHINA in 2013
 INTOSAI CONGRESS

I 1953 CUBA
II 1956 BELGIUM
III 1959 BRAZIL
IV 1962 AUSTRIA
V 1965 ISRAEL
VI 1968 JAPAN
VII 1971 CANADA
VIII 1974 SPAIN
IX 1977 PERU
X 1980 KENYA
XI 1983 PHILIPPNES
XII 1986 AUSTRALIA
XIII 1989 GERMANY
XIV 1992 USA
XV 1995 EGYPT
XVI 1998 URUGUAY
XVII 2001 KOREA
XVIII 2004 HUNGARY
XIX 2007 MEXICO
XX 2010 SOUTH AFRICA
 LIMA DECLARATION (PERU 1977)- purpose of audit

Concept of audit is inherent in public financial administration

because management of public funds represents a trust.

Audit is not an end in itself but an indispensable part of a

regulatory system whose aim is to ___ reveal deviations/
violations of the principles of legality, efficiency,
effectiveness ______ early enough to make it possible to
take corrective action in individual cases, to make those
accountable accept responsibility, to obtain compensation,
or to take steps to prevent--or at least render more
difficult--such breaches.
 LIMA DECLARATION 1977

Independence of Supreme Audit Institution

Relationship to Parliament, Government,

Administration

Power of Supreme Audit Institution

Audit Powers of Supreme Audit Institution

Reporting
 (1998 URUGUAY) The Code of Ethics
statement of values and principles guiding the
daily work of the auditors.
Integrity, impartiality, objectivity etc

(2004-HUNGARY-BUDAPEST)
Auditing Standards at high level - postulates
and principles for carrying out the audit work
Basic Principles, General Standards, Field
Standards, Reporting Standards
(2007 MEXICO) - MEXICO DECLARATION
The existence of an appropriate and effective
constitutional/statutory/legal framework
Independence of SAI heads and members
legal immunity
Broad mandate and full discretion
Adopted Eight Core Principles which flow from the
Lima Declaration and decisions of subsequent
Congresses as essential requirements of proper
public sector auditing, unrestricted access to
information (records), financial autonomy etc
 REGIONAL GROUPS
Regional Professional and technical cooperation
AFROSAI
ARABOSAI 22 Arabic speaking
ASOSAI
CAROSAI Caribbean
EUROSAI
OLACEFS Organization of Latin American Caribbean
PASAI Pacific Association
 INTOSAI COMMITTEES
Professional Standards Committee
Standards on Financial Audit, Compliance Audit,
Performance Audit, Internal Controls, Quality control
Capacity Building Committee
Knowledge Sharing Committee
Standards on IT Audit, Environmental Auditing, PPP,
Privatisation, Economic regulation, Public debt etc
Finance & Administration Committee
 INTOSAI STANDARDS
August 2012

Experientia Mutua Omnibus Proudest

"Mutual experience benefits all"
International Standards of
Supreme Audit Institutions

ISSAIs
INTOSAI
Auditing Standards
INDIAN AUDIT AND
ACCOUNTS
DEPARTMENT

AUDITING
STANDARDS
1st Edition 1994
2nd Edition 2002
Comptroller and Auditor
General of India
The standards developed by INTOSAI for guiding the Government
Audit profession are termed as International Standards of Supreme
Audit Institutions (ISSAI). These standards are hierarchically
divided into four groups or levels.

Level-1: Founding Principles

Level-2: Prerequisites for functioning of
Supreme Audit Institutions
Level-3: Fundamental Auditing Principles
Level-4: Auditing Guidelines-
Implementation guidelines, specific
guidelines
Level 1: Founding principles
ISSAI 1 : LIMA Declaration (1977)

Level 2: Prerequisites for the Functioning of

Supreme Audit Institutions
ISSAI 10 : Mexico Declaration on SAI Independence (1987)
ISSAI 11 : INTOSAI Guidelines & Good Practices Related
to SAI Independence
ISSAI 20 : Principles of Transparency & Accountability
ISSAI 21 : Principles of Transparency - Good Practices
ISSAI 30 : Code of Ethics
ISSAI 40 : Quality Control for SAIs
Level 3: Fundamental Auditing Principles

ISSAI 100: INTOSAI Auditing Standards -

Basic Principles
ISSAI 200 : INTOSAI Auditing Standards -
General Standards
ISSAI 300: INTOSAI Auditing Standards -
Field Standards
ISSAI 400 :INTOSAI Auditing Standards -
Reporting Standards
Under 4th level there are three sets of
guidelines

Implementation Guidelines
Specific Guidelines
Guidance on Good Governance
Level 4: Implementation Guidelines
ISSAI 1000 to 2999 : Financial Auditing Guidelines
about 50 standards in this series for example
standard 1500 audit evidence; 1530 audit sampling

ISSAI 3000 to 3999: Performance Auditing Guidelines

2 standards in this series-3000,3100

ISSAI 4000 to 4999 :Compliance Auditing Guidelines

3 standards in this series-3000,3100
Level 4: Auditing Guidelines - Specific
Guidelines on
ISSAI 5000 to 5099: Audit of International Institutions
ISSAI 5100 to 5199: Environmental Audit
ISSAI 5200 to 5299: Audit of Privatisation
ISSAI 5300 to 5399: IT-Audit
ISSAI 5400 to 5499 :Audit of Public Debt
ISSAI 5500 to 5599 : Audit of Disaster related Aid
ISSAI 5600 to 5699 :Peer Review Guidelines
Guidance on Good Governance

ISSAI 9100 to 9199: Internal controls,

Risk Management
6 standards in this series

ISSAI 9200 to 9299: Accounting Standards

5 standards in this series
 Why standards?
Why do we need Auditing Standards?
Standards help to ensure that products and
services live up to your expectations (users)
safe, reliable and of good quality
Examples

Accounting or Financial Reporting Standards

(by Government for tax purpose, by shareholders/investors)
 Why auditing standards?
Assurance about the quality of audit done to
the users of the audit reports
Use them as bench mark or measure while
doing audit, common frame of reference
Standardisation of process and products,
uniformity between all the auditors- audits,
so that comparison is fair
Increases credibility, increase of level of
perception for users
Auditing Standards
INDIAN AUDIT AND
ACCOUNTS
DEPARTMENT

AUDITING
STANDARDS
1st Edition 1994
2nd Edition 2002
Comptroller and Auditor
General of India
 our audit manuals were standards
First edition of Defence Audit Manual 1922
First edition of P&T Audit Manual 1928 **
First edition of Railway Audit Manual 1932
Revenue Audit Manuals 1961 (Customs earlier)
First edition of MSO 1963 (compliation)
First ed of Commercial Audit Manual 1974
Manual of Audit of Autonomous Bodies 1983
Performance Audit Manual, Financial Attest
Level 3: Fundamental Auditing Principles
ISSAI 100: INTOSAI Auditing Standards -
Basic Principles
ISSAI 200 : INTOSAI Auditing Standards -
General Standards
ISSAI 300: INTOSAI Auditing Standards -
Field Standards
ISSAI 400 :INTOSAI Auditing Standards -
Reporting Standards
In rest of the places the word guidelines is used
(ISSSAI 10000 to 9299)
Fundamental Auditing Principles - revised
ISSAI 100: Fundamental Principles of
Public Sector Auditing
ISSAI 200: Fundamental Principles of
Financial Auditing
ISSAI 300: Fundamental Principles of
Performance Auditing
ISSAI 100: Fundamental Principles of
Compliance Auditing
 standards for any audit
Auditors-Skills, ethics, independence,
objectivity, professional behaviour

Exercising professional care, professional

scepticism, quality standards during audit

Audit involves three parties auditor, auditee

and user- terms of engagement
Subject matter to be audited, understanding
the entity, audit risk, planning the audit
standards for any audit ..continued

Audit objectives

Audit criteria

Audit procedures (standard does not elaborate

the procedures) review of internal controls-
substantive testing (analytical review)
standards for any audit ..continued
Materiality, significant deviations
Sufficient appropriate audit evidence
Audit findings, conclusions
Documentation of entire audit process & evidence
Reporting -reasonable assurance/ short form
Reporting -exception reporting/ long form
Discussion in Legislative committees
Follow-up
 Auditors-Skills, ethics, independence, objectivity, professional behaviour
Exercising professional care, professional scepticism, quality standards during audit

Audit involves three parties auditor, auditee and user- terms of engagement

Subject matter for audit, understanding the entity, audit risk, planning the audit
Audit objectives-
Audit criteria
Audit procedures (review of controls, substantive testing)
Materiality, significant deviations
Sufficient appropriate audit evidence
Audit findings, conclusions
Documentation of entire audit process and evidence
Reporting (reasonable assurance-short form report)(exception reporting-long
form report)- Discussions in Legislative Committee- Follow up