Establishing an Audit Quality Management System Free Essays

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[pic] THEME 1: ESTABLISHING AN AUDIT QUALITY MANAGEMENT SYSTEM WITHIN A SUPREME AUDIT INSTITUTION PRINCIPAL PAPER Prepared by: State Audit Office, Hungary (seat) European Court of Auditors National Audit Office, Malta National Audit Office, Denmark Accounts Chamber, Russian Federation February 2007 Table of Contents INTRODUCTION5 Achieving greatness in review activity5 Glossary7 Chapter I: Leadership9 Leadership and Supreme Audit Institutions9 Leadership’s primary variables for guaranteeing review quality10 Chapter II: Strategy and Planning13 Strategic planning13 Operational planning14 Section III: Human Resource Management17 Human asset planning18 HRM arrangements and procedures18 Job descriptions18 Employee enrollment and selection18 Staff preparing and development19 Performance examinations and recognition19 Employee compensation and benefits20 Chapter IV: Building Quality into the Audit Process21 Audit standards21 Guidelines, techniques and methods21 Supervision and review22 Support22 Chapter V: External Relations25 Audited organisations25 Parliament and its committees26 Media and the general public27 International associations and other SAIs27 Chapter VI: Continuous Development and Improvement29 Nonstop survey and monitoring29 Post-review quality review30 Self-evaluation of the organisation30 Other methods for consistent turn of events and improvement inside the organisation31 External opinions31 Concluding Remarks33 Reference Documents35 Collection of Questions37 Introduction 1. THE EUROSAI GOVERNING BOARD DECIDED TO DISCUSS AUDIT QUALITY DURING THE VII EUROSAI CONGRESS IN KRAKOW DUE TO BE HELD BETWEEN 2 AND 5 JUNE 2008. IT WAS ALSO AGREED UPON THAT THE SUBJECT OF THEME I OF THE CONGRESS WOULD BE ‘ESTABLISHING AN AUDIT QUALITY MANAGEMENT SYSTEM WITHIN A SUPREME AUDIT INSTITUTION’. We will compose a custom article test on Setting up an Audit Quality Management System or then again any comparative point just for you Request Now Conversations ON THEME I WILL PROVIDE EUROSAI MEMBER INSTITUTIONS WITH INSIGHTS ON THE PRINCIPLES AND PRACTICES OF AN EFFECTIVE QUALITY MANAGEMENT SYSTEM. IN LINE WITH THIS OBJECTIVE, A GOOD PRACTICE GUIDE WILL BE DEVELOPED AND SUBMITTED TO THE VII EUROSAI CONGRESS FOR APPROVAL. 2. The reason for this Principal Paper is to give a review to EUROSAI individuals in the planning of their separate nation papers. EUROSAI part foundations ought to portray, in these papers, their individual review quality administration frameworks, including the key components introduced in this Chief Paper. Accomplishing greatness in review movement 3. The Lima Declaration of Guidelines on Auditing Precepts records the accompanying explicit destinations of evaluating as being essential for the strength and the improvement of states: †¢ the best possible and successful utilization of open assets; †¢ the advancement of sound budgetary administration; †¢ the best possible execution of authoritative exercises; and †¢ the correspondence of data to open specialists and the overall population through the distribution of target reports. From the perspective of partners, the acknowledgment of the review ends and proposals relies upon the trust in the Supreme Audit Institution (SAI) itself and the review exercises attempted. In this manner, the SAI should look to create frameworks and techniques to guarantee greatness in their work and results. 4. The way toward setting up, executing and persistently building up a quality administration framework inside a SAI can add to guaranteeing trust with partners. The central objective of setting up such a framework is to ensure steady great nature of review work and results. A viable quality administration framework additionally prompts the turn of events and support of a thorough structure that manages those elements and conditions that directly affect review action. 5. A SAI is in a superior situation to convey quality outcomes on the off chance that it has an appropriately overseen quality administration framework set up. For a quality administration framework to work adequately, it is of most extreme significance that measures, systems and rules are properly characterized at all control levels of a SAI. Moreover, the attributes that guarantee greatness in review work (in particular essentialness, unwavering quality, objectivity, importance, practicality, clearness, proficiency and viability) should likewise be resolved, checked and guaranteed. Components of the quality administration framework 6. The quality administration framework related with the review action is made out of the accompanying components: †¢ Leadership is the key factor in building up the crucial, qualities, morals and culture of the association and going about as good examples of greatness. Technique and Planning characterize how the association executes its vision and mission. This is accomplished through the SAI’s systems, approaches, plans, goals, targets and procedures. †¢ Human asset the executives is one of the center segments in the foundation of a coordinated quality administration framework and is basic in the advancement of an interior culture dependent on quality, greatness and ceaseles s improvement. †¢ Building quality into the review procedure is indispensable to improve the validity and execution of the SAI. It includes components (e. g. tandards, rules, strategies, techniques, support) that guarantee compelling usage, oversight and survey in all periods of the review work. †¢ External relations with partners give free wellsprings of data on review quality, and structure a target reason for quality appraisal of the review action of a SAI. †¢ Continuous turn of events and improvement is an administration approach that reliably guarantees the high caliber of review results and the fulfillment of partners through fitting measures, built up methodology and techniques. Glossary |EXCELLENCE |OUTSTANDING PRACTICES IN MANAGING THE Organization AND ACHIEVING RESULTS BASED ON A SET OF FUNDAMENTAL CONCEPTS. | |THESE INCLUDE: A RESULTS-ORIENTED APPROACH, STAKEHOLDER FOCUS, LEADERSHIP AND CONSTANCY OF PURPOSE, MANAGEMENT BY | |PROCESSES AND FACTS, INVOLVEMENT OF PEOPLE, CONTINUOUS IMPROVEMENT AND INNOVATION, MUTUALLY BENEFICIAL | |PARTNERSHIPS, CORPORATE SOCIAL RESPONSIBILITY. |LEADERSHIP |THE APPROACH ADOPTED BY LEADERS TO DEVELOP AND FACILITATE THE ACHIEVEMENT OF THE MISSION AND VISION; AS WELL AS | |DEVELOP VALUES REQUIRED FOR LONG-TERM SUCCESS AND IMPLEMENT THESE THROUGH APPROPRIATE ACTIONS AND Behaviors. | |LEADERS ARE PERSONALLY INVOLVED IN ENSURING THAT THE MANAGEMENT SYSTEM IS DEVELOPED AND IMPLEMENTED. | |MANAGEMENT SYSTEM |THE FRAMEWORK OF PROCESSES AND PROCEDURES USED TO ENSURE THAT THE Organization CAN Fulfill ALL TASKS REQUIRED TO | |ACHIEVE ITS OBJECTIVES. |MISSION |A STATEMENT THAT DESCRIBES THE PURPOSE OR â€Å"RAISON D’ETRE† OF AN Organization. IT DESCRIBES WHY THE BUSINESS OR | |FUNCTION EXISTS. | |PROCESS |A SET OF ACTIVITIES THAT TRANSFORMS INPUTS INTO OUTPUTS OR OUTCOMES, THEREBY ADDING VALUE. | |QUALITY |THE DEGREE TO WHICH A SET OF INHERENT CHARACTERISTICS OF AN AUDIT Fulfills REQUIREMENTS. THESE CHARACTERISTICS | |INCLUDE: | |Significance: The review subject ought to be significant and enough noteworthy. The review subject can be | |significant from different angles. For example, the effect of the presentation of the examined region, association, | |activity or undertaking can be extensive on the general public or on significant arrangement issues. You read Setting up an Audit Quality Management System in class Article models | |Reliability: Audit discoveries and ends ought to precisely reflect real states of the review being carried| | |out and are in consistence with set up norms and strategies. All attestations remembered for the review report | |should be satisfactorily upheld by adequate and proper review proof. | |Objectivity: A review ought to be acted in an unbiased and reasonable way without favor or partiality. The | |assessment and assessment of evaluators ought to be founded solely on realities and on sound examination of, or correlation | |with, prerequisites and measures specified by lawful guidelines or characterized in some other manners. | |Relevance: The review planâ / programme ought to appropriately address †as per the review targets †all | |elements required for the fruitful culmination of a review. Over the span of the execution of a review, all | |provisions of the review planâ / programme ought to be fittingly and totally actualized. | |Timeliness: Audit results (review reports and qualifying feelings) ought to be conveyed at a proper time. This| | |may include complying with the time constraint specified by lawful guidelines or †from a more extensive perspective †it might imply that review | |results are conveyed when they are required for an arrangement choice or when they are the most valuable in amending | |management shortcomings. | |Clarity: Audit perceptions, discoveries, and ends remembered for the review report ought to be introduced in a clear| | |and compact way. It likewise implies that a review report ought to be all around masterminded and coherently organized. Review | |findings, ends, and proposals ought to be presented in a manner that is brief and effectively justifiable | |for the clients of the review results, for example, individuals from Parliament and different administrators who may not be specialists of | |the inspected subject yet may need to act considering the substance of the review report. | |Efficiency and adequacy: Resources used during the review ought to be relative to the accomplished outcomes. | |Audit results ought to have suitable effect so as to forestall and address disparities and material mistakes, | |enhance execution, and to improve the board and guideline frameworks. | |Quality affirmation |Policies, frameworks and methods establi