Task plan and audit programme

The task plan and the audit programme together describe how the audit will be performed in order to meet its objectives.

Compliance audit Financial audit

Planning

Ref: 14.310

Definitions

The task plan sets out the information relevant and necessary for the chamber members to take a decision. It establishes the overall audit strategy, presents the scope, timing, and direction of the audit and guides the development of the more detailed audit programmes. When approved, it becomes the ‘contract’ between the reporting member and the chamber, by which the reporting member commits to deliver the task in accordance with the ECA’s methodology, within the established deadlines, and using the resources made available by the chamber. The audit programme is a set of instructions to the audit team that lays out in detail the nature and extent of the audit procedures.

Principles

Effective planning is key to successful task completion. Our guidance on planning compliance and financial audits sets out the main elements to take into account during the task plan preparation. The planned implementation of the task should be in line with the standard procedures and instructions in AWARE. Any expected deviations from the standard are disclosed in the task plan. The planning steps should be documented in Assyst, allowing for consultation by line management and chamber members, should they require detailed information not available in the task plan. The task plans and audit programmes are subject to supervision and review and independent quality review . We develop and maintain good relations and dialogue with auditees: we ensure that we are aware of new developments in the area, and keep auditees updated regarding the progress of our preliminary work. We inform the auditees when we start work on the task. The task plans and audit programmes are internal documents not intended for sharing with outside parties, but teams can share extracts with auditees as appropriate , in line with the ‘no surprises approach ’.

Instructions

Task plan

In order to keep the task plan concise, where possible use bullet points rather than detailed text, with hyperlinks to additional information in Assyst and elsewhere. In the task plan, set out:

a description of the audit field, including the regulatory framework for the audit where relevant and recent significant changes and developments that may affect the audit;
the financial and compliance audit objectives;
a preliminary assessment of risks (including the risk of fraud );
the audit scope and approach, including entities to be audited and periods to be covered, the audit procedures to be carried out in order to provide the necessary audit evidence, as well as the approach to follow-up the findings, conclusions and recommendations . Identify the extent of planned reliance on control systems, the extent of substantive procedures and the use of the work of other auditors .
the materiality thresholds;
the implementation of the audit , in particular
resources, including the audit team members and time required, as well as the use of external experts ;
a timetable with key milestones and, if appropriate, legal deadlines for the task;
the expected cost of missions.

If not following the ECA’s standard approach, include information on and an explanation of clearing, publication, and dissemination of audit results. For our

SoA

legality and regularity audit of the general budget of the EU, consult guidance on the content of the task plans, provided annually by Chamber V.

Communicate with auditees

Keep auditees updated regarding our planning activities at working level, including their liaison officer. When relations with auditees are not well established (they have not been audited before, or they have been audited infrequently, or in the case of a newly created body), the director sends a formal letter at an appropriate level to announce the start of preparatory work and to provide contact details for the auditors in charge. Use the relevant template available in Eurolook and adapt it as necessary. Consider consulting DG BUDG, if appropriate, for advice and support. Copy in DG BUDG when making the first formal contact concerning tasks where the Commission is an auditee. This also concerns bodies where the Commission acts as accounting officer. When contacting services of the European Parliament, include the director for Budget and Financial Services . The Directorate of the Presidency provides general information on how to contact EU institutions and bodies (including the EIB). Seek to agree with auditee(s) on the practical arrangements already during planning. When there are substantial changes to the audit scope and approach (such as the introduction of new audit elements, areas or topics) or if the auditee is new, invite the auditee for an exchange of views (orally or in writing) and consider carefully whether and how to take account of the auditee´s perspective before the task plan approval. Such exchanges help us to plan the audit better, although it remains our ultimate responsibility to establish the overall audit strategy necessary to obtain sufficient appropriate audit evidence. After approval of the task plan, inform the auditee(s) at working level that the audit has started. It is a good practice to update the auditees on the key elements (e.g. objectives, scope, approach and timing) of the task in the opening (’kick-off’) meeting. Formal notification is necessary if the auditors and auditees are not in regular contact, i.e. the auditees are new, or when significantly changing the scope and approach of the audit. When notifying member states of audit visits and meetings, always send a formal letter, keep supreme audit institutions (SAIs) informed and respect arrangements agreed regarding the coordination of our audits.

Audit programme

Prepare audit programmes in the form of a questionnaire to address the specific characteristics of the area and type of audit. Upload audit programmes to the standard audit programmes library in Assyst once approved by the principal manager. Chamber V should approve

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standard audit programmes for the legality and regularity audits of the general budget of the EU. Completed audit programmes serve as a record of the proper planning and performance of the audit procedures and facilitate review and approval .

Changes to planning decisions during the audit

Update the task plan and audit programme as necessary during the course of the audit, whether due to unexpected events, changes in conditions or audit evidence obtained. This may have an impact on the nature, extent and timing of planned audit procedures. Present substantial changes to the task plan to the chamber for approval, and communicate them to auditees as appropriate, in line with the ‘no surprises approach’ . Chamber V should approve any changes made to the

SoA

standard audit programmes for the legality and regularity audits of the general budget of the EU.

Resources

Creation of audit programmes in Assyst: contact Assyst support and consult the relevant Assyst user manual.

Template in Eurolook for a letter to announce the start of preparatory work (under preparation - contact DQC)

Template in Eurolook for notification letters

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Task plan and audit programme

Definitions

Principles

Instructions

Task plan

Communicate with auditees

Audit programme

Changes to planning decisions during the audit

Resources

Task plan and audit programme