Establishing an Audit Quality Management System Free Essays

string(36) society or on significant arrangement issues. [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 principle factors for guaranteeing review quality10 Chapter II: Strategy and Planning13 Strategic planning13 Operational planning14 Section III: Human Resource Management17 Human asset planning18 HRM strategies and procedures18 Job descriptions18 Employee enrollment and selection18 Staff preparing and development19 Performance evaluations 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 ceaseless 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 exposition test on Setting up an Audit Quality Management System or then again any comparative theme 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 motivation behind this Principal Paper is to give a diagram 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 reviewing as being important for the security and the advancement of states: †¢ the best possible and powerful utilization of open assets; †¢ the improvement of sound budgetary administration; †¢ the correct execution of managerial exercises; and †¢ the correspondence of data to open specialists and the overall population through the production 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. Along these lines, the SAI should look to create frameworks and techniques to guarantee greatness in their work and results. 4. The way toward building up, actualizing and ceaselessly building up a quality administration framework inside a SAI can add to guaranteeing trust with partners. The major objective of setting up such a framework is to ensure reliable great nature of review work and results. A compelling quality administration framework additionally prompts the turn of events and upkeep of a complete system that controls those variables and conditions that directly affect review movement. 5. A SAI is in a superior situation to convey quality outcomes in the event that it has an appropriately overseen quality administration framework set up. For a quality administration framework to work successfully, it is of most extreme significance that measures, methods and rules are fittingly characterized at all control levels of a SAI. Besides, the attributes that guarantee greatness in review work (in particular importance, unwavering quality, objectivity, significance, practicality, lucidity, productivity and viability) should likewise be resolved, checked and guaranteed. Components of the quality administration framework 6. The quality administration framework related with the review movement is made out of the accompanying components: †¢ Leadership is the key factor in building up the strategic, qualities, morals and culture of the association and going about as good examples of greatness. Procedure and Planning characterize how the association executes its vision and mission. This is accomplished through the SAI’s procedures, arrangements, 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 fundamental in the advancement of an inner culture dependent on quality, greatness an d ceaseless improvement. †¢ Building quality into the review procedure is indispensable to improve the believability and execution of the SAI. It contains components (e. g. tandards, rules, strategies, techniques, support) that guarantee viable execution, management 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 evaluation 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, set 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 huge. The review subject can be | |significant from different perspectives. For example, the effect of the presentation of the reviewed territory, association, | |activity or task can be extensive on the general public or on significant strategy issues. You read Setting up an Audit Quality Management System in class Paper models | |Reliability: Audit discoveries and ends ought to precisely reflect genuine states of the review being carried| | |out and are in consistence with built up norms and strategies. All declarations remembered for the review report | |should be enough upheld by adequate and fitting review proof. | |Objectivity: A review ought to be acted in a fair-minded and reasonable way without favor or bias. The | |assessment and assessment of reviewers ought to be founded solely on realities and on sound investigation of, or examination | |with, prerequisites and models specified by legitimate guidelines or characterized in some other manners. | |Relevance: The review planâ / programme ought to appropriately address †as per the review goals †all | |elements required for the effective 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 fitting time. This| | |may include fulfilling the time constraint specified by legitimate guidelines or †from a more extensive perspective †it might imply that review | |results are conveyed when they are required for an approach 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 succinct way. It additionally implies that a review report ought to be very much masterminded and intelligently 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 officials who may not be specialists of | |the examined subject however may need to act considering the substance of the review report. | |Efficiency and adequacy: Resources used during the review ought to be corresponding to the accomplished outcomes. | |Audit results ought to have proper effect so as to forestall and address inconsistencies and material blunders, | |enhance execution, and to improve the executives and guideline frameworks. | |Quality affirmation |Policies, frameworks and systems establi