Preparing and planning the audit is an iterative process, which draws on [link title="knowledg" link="%2Faware%2FPA%2FPages%2FPlanning%2FUnderstanding-audit-area.aspx" /]
e acquired and an [link title="assessment" link="%2Faware%2FPA%2FPages%2FPlanning%2FRisk-assessment.aspx" /]
of risk. The team develops [link title="questions" link="%2Faware%2FPA%2FPages%2FPlanning%2FDeveloping-audit-questions.aspx" /]
to meet the objective of the audit, and defines the [link title="scope" link="%2Faware%2FPA%2FPages%2FPlanning%2FDetailed-planning.aspx%23Set-the-audit-scope" /]
of the audit. Preparing a relevant and achievable audit entails consideration of whether [link title="audit%20criteria" link="%2Faware%2FPA%2FPages%2FPlanning%2FAudit-criteria.aspx" /]
are available or can be developed, whether audit [link title="evidence%20exists" link="%2Faware%2FPA%2FPages%2FPlanning%2FDetailed-planning.aspx%23Identify-the-audit-evidence-and-its-sources" /]
and is accessible by the audit team, and if not, whether [link title="audit%20procedures" link="%2Faware%2FPA%2FPages%2FPlanning%2FAudit-procedures.aspx" /]
can be successfully employed to collect and analyse data to generate the evidence. Preparing a well-thought out [link title="evidence%20collection%20plan" link="%2Faware%2F_layouts%2F15%2FWopiFrame.aspx%3Fsourcedoc%3D%7B0CB71D30-0CBA-4CB9-A9C2-16F154CB616E%7D%26file%3DEvidence-collection-plan-template.docx%26action%3Ddefault%26DefaultItemOpen%3D1" icon="file-word-o" /]
is essential to allow the team to focus on answering the questions within [link title="time%20and%20resources" link="%2Faware%2FPA%2FPages%2FPlanning%2FResources-timetable.aspx" /]
budgets. In some cases, the preparatory work may lead to the conclusion that the audit is not relevant or achievable. In this case, the team should consider [link title="stopping%20the%20audit" link="%2Faware%2FPA%2FPages%2FPlanning%2FStop-audit.aspx" /]
or modifying its objective and scope.
Where the Commission is the potential auditee, copy the letter to DG BUDG. Consider consulting DG BUDG regarding which part of the Commission is concerned by the task, at which level to address the letter, and who else to copy it to. When making initial contact with the services of the European Parliament in the context of an audit or review task, include the director for [link new-window title="Budget%20and%20Financial%20Services" link="%20https%3A%2F%2Fthe-secretary-general.europarl.europa.eu%2Fen%2Fdirectorates-general%2Ffins" icon="external-link" /]
in the email. The Directorate of the Presidency provides general information on how to contact EU institutions and bodies (including the EIB).
When there is a need to contact bodies in member states, e.g. to request information on projects, keep supreme audit institutions (SAIs) informed and respect arrangements agreed regarding the coordination of our audits.
In the letter:
- inform potential auditees about the start of preparatory work;
- make clear that it is still the planning stage and the scope (as well as the auditees) may change;
- provide contact details of the auditors in charge; and
- request the name of a contact person on their side, unless you have already established this.
Whether communicating with the Commission or another potential auditee, it is good practice to inform the liaison officer at working level of this letter and to update them regarding any changes, for example in the scope or timing of the audit.
Set up meetings at working level, to explain the reasons for carrying out the task, to confirm or improve your [link title="understanding%20of%20the%20audit%20area" link="%2Faware%2FPA%2FPages%2FPlanning%2FUnderstanding-audit-area.aspx" /]
, and if needed, to explain our working methods and procedures.
Provide the potential auditee with access to ECAfiles to share [link title="data%20and%20documents" link="%2Faware%2FGAP%2FPages%2FSpecific%2FAuditee-data-collection.aspx" /]
you may request at this stage.
Develop the audit questions
See [link title="developing%20audit%20questions" link="%2Faware%2FPA%2FPages%2FPlanning%2FDeveloping-audit-questions.aspx" /]
.
Set the audit scope
The scope defines the boundary of the audit:
- what: the programme(s), policy areas and/or budget lines to be audited
- who: the potential auditees
- where: the geographical scope of the audit
- when: the time period to be covered
Consider the rationale for the scoping decisions, which can be motivated by consideration of feasibility and [link title="ECA%E2%80%99s%20mandate" link="%2Faware%2FGAP%2FPages%2FECA-types-of-audits.aspx" /]
.
Establish the audit criteria
See [link title="audit%20criteria" link="%2Faware%2FPA%2FPages%2FPlanning%2FAudit-criteria.aspx" /]
page.
Identify the audit evidence and its sources
Identify the [link title="audit%20evidence" link="%2Faware%2FGAP%2FPages%2FAudit-evidence.aspx" /]
needed to answer the audit questions, as well as the sources from which such evidence is to be obtained, whether it can be [link title="accessed" link="%2Faware%2FGAP%2FPages%2FThe-ECAs-access-rights.aspx" /]
and whether it is in a form which can be easily collected and analysed.
This evidence needs to be:
- sufficient to enable the main audit question to be fully answered;
- relevant to address the audit question being asked; and
- reliable in terms of its credibility and consistency.
Before using personal data as audit evidence, contact the Data Protection Officer. Personal data includes, for example, the names of auditees, beneficiaries, people who participate in meetings or audit visits, and any other individuals contacted during the audit.
If it is expected to be difficult to obtain some types of [link title="audit%20evidence" link="%2Faware%2FGAP%2FPages%2FAudit-evidence.aspx" /]
identified at this stage, consider the potential impact on the audit and whether alternative sources of evidence are available. If there is a high risk that it will not be possible to obtain the necessary evidence, consider revising the [link title="audit%20question" link="%2Faware%2FPA%2FPages%2FPlanning%2FDeveloping-audit-questions.aspx" /]
.
Performance audits usually require auditors to be creative and flexible in their search for evidence. Consider consulting [link title="experts" link="%2Faware%2FGAP%2FPages%2FSpecific%2FExternal-experts.aspx" /]
regarding the nature of the data to be obtained and the way in which it will be analysed and interpreted by the audit team, in order to reduce the risk of misunderstanding and potentially speed up the process.
Define audit methodology
See [link title="audit%20procedures" link="%2Faware%2FPA%2FPages%2FPlanning%2FAudit-procedures.aspx" /]
page.
Consider the likely outcome of the audit
Note the potential [link title="conclusions" link="%2Faware%2FPA%2FPages%2FReporting%2FConclusions.aspx" /]
and [link title="recommendations" link="%2Faware%2FGAP%2FPages%2FRecommendations.aspx" /]
expected to emerge from the audit work and the likely impact of the audit for inclusion in the [link title="task%20plan" link="%2Faware%2FPA%2FPages%2FPlanning%2Ftask-plan.aspx" /]
.
Bear in mind upcoming changes in legislation and at what stage in the Commission's programme-planning cycle the audit report will be published. Where possible, reports should have regard to the agendas of the European Parliament and the Council. All this will help to determine how to maximise the likely impact and usefulness of the final report.
See [link title="resources%20and%20timetable" link="%2Faware%2FPA%2FPages%2FPlanning%2FResources-timetable.aspx" /]
page.
Plan communication arrangements and other practicalities
Within the team, assign roles and responsibilities for communication to each team member, regarding [link title="notification" link="%2Faware%2FGAP%2FPages%2FNotification.aspx" /]
of audit visits, requests for [link title="information%20and%20documents" link="%2Faware%2FGAP%2FPages%2FSpecific%2FAuditee-data-collection.aspx" /]
, [link title="organisation%20of%20meetings" link="%2Faware%2FGAP%2FPages%2FSpecific%2FAudit-Interview.aspx%23Organising-the-interview" /]
and [link title="audit%20interviews" link="%2Faware%2FGAP%2FPages%2FSpecific%2FAudit-Interview.aspx" /]
. Agree on the manner of reporting back on and documenting visits, and on how to [link title="check%20facts%20and%20clear%20findings" link="%2Faware%2FPA%2FPages%2FExamination%2FClearing.aspx" /]
. Plan for regular meetings within the team to discuss the [link title="progress" link="%2Faware%2FGAP%2FPages%2FProgress-report.aspx" /]
of the task.
Seek to agree with the auditee(s) on practical arrangements, such as:
- determination of appropriate contact persons at management and working level;
- content and form of communication;
- timing of steps of the audit process and
[link title="organisation%20of%20visits%2Fmeetings" link="%2Faware%2FGAP%2FPages%2FSpecific%2FAudit-Interview.aspx%23Organising-the-interview" /]
;
- ways to
[link title="collect%20data%20and%20information" link="%2Faware%2FGAP%2FPages%2FSpecific%2FAuditee-data-collection.aspx%23Actual-collection" /]
(including providing access to ECAfiles); and
- the
[link title="clearing" link="%2Faware%2FPA%2FPages%2FExamination%2FClearing.aspx%23Clearing-procedures" /]
and [link title="adversarial" link="%2Faware%2FPA%2FPages%2FReporting%2FAdversarial-procedure.aspx" /]
procedures envisaged.
Obtain feedback on key elements of the draft task plan
Once the draft task plan is mature enough, provide auditees with information (orally or in writing) on its key elements, such as the proposed objectives, [link title="scope" link="%2Faware%2FPA%2FPages%2FPlanning%2FDetailed-planning.aspx%23Set-the-audit-scope" /]
, [link title="timetable" link="%2Faware%2FPA%2FPages%2FPlanning%2FResources-timetable.aspx" /]
, audit [link title="questions" link="%2Faware%2FPA%2FPages%2FPlanning%2FDeveloping-audit-questions.aspx" /]
and [link title="criteria" link="%2Faware%2FPA%2FPages%2FPlanning%2FAudit-criteria.aspx" /]
. Invite auditees to provide feedback and discuss with them any other elements (e.g. [link title="audit%20procedures" link="%2Faware%2FPA%2FPages%2FPlanning%2FAudit-procedures.aspx" /]
) that might be useful at this stage. It may also be useful to clarify explicitly what will not be audited to help reduce the potential for misunderstanding by the auditee.
Exchange views early enough before the chamber reading to have time to consider carefully whether and how to take account of auditees´ perspective and to react to potential problems. While such an exchange may help to plan the audit better, it remains our ultimate responsibility to establish the audit criteria, the overall audit strategy, and nature, timing and extent of procedures necessary to obtain sufficient appropriate audit evidence.
[link title="Document" link="%2Faware%2FGAP%2FPages%2FDocumenting-an-audit.aspx%23Document-meetings" /]
the main points resulting from this exchange in Assyst.
Resources
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