Value-Oriented Audits for Adding Societal Value: Challenges and Strategies
Learn how SAIs can enhance societal value through audits. Discover ways to add value, overcome challenges, and ensure high-quality audit processes. Explore topics on importance, cooperation, and communication for effective audit planning and execution.
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Presentation Transcript
VALUE ORIENTED AUDITS Dr DU KO PEJOVI President and Auditor General
Contents of presentation What are the ways for the SAIs to add value to the society What is needed for the SAIs to add value to the society General challenges and risks Challennges faced by SAI Serbia
How SAIs add value to the society Enhancing quality of financial statements Providing credibility to the managements reports Improving the systems, legality and 3 E of operations
Audit topics/subjects of importance for society Active cooperation with the Parliament and the media Audit carried out with high quality Follow up of audit recommendatioons Communication with the auditee Clear and understandable audit reports
Challenges or risks Selection of topics of low importance for society and inefficient use of SAI s resources Carrying out audits with insufficient quality Bad communication Follow-up of audit recommendations done only formally
Audit planning - Selecting topics/subjects of importance for society- What are the importnat topics? consult stakeholders Appropriate type of audit and scope Where can we contribute mostly? risk analysis
Audit execution - Carry out high quality audits - Why does it have to be changed? How can improvements be made? What needs to be changed? High quality audit reports
Cooperation with the auditee - Communicate with the auditee clearly and timely - Appropriate number of public enterprises, business companies and other legal entities Republic of Serbia, direct and indirect budget beneficiaries Appropriate number of units of local self- government Mandatory social insurance organizations National bank of Serbia Mandatory auditees
Report writing - Write clear and understandable audit reports (formulate recommendations that bring to changes) - communicate audit results clearly and effectively use simple language when writing reports recommendations should be constructive and useful
asuring the impact of the report - Follow up audit recommendations measure their impact - It is necessary to constantly follow up audit recommendations and measure their impact Quantitatively Qualitatively Effects on citizens
Measuring the impact of the report - Follow up audit recommendations measure their impact - Auditee submits the response report Verification assessment Follow-up audit not to be carried out Follow-up audit to be carried out Auditees activities are credible Auditees activities are not credible Summaries and reports on audit recommendations Drafting follow-up audit report Reporting to the National Assembly on audit recommendations Entry of data in the data base
Measuring the impact of the report - Follow up audit recommendations measure their impact - SAI Serbia developed its information system for audit follow up. Some of the effects are as follows: Financial discipline enhancement Decrease of expenditures Effects on citizens Increase of pensions for the military personnel Increase of income Improvement of the FMC system Increase of compensations for funeral expenses
Cooperation with the Parliament and the media - To actively cooperate with the Parliament and the media - The legislature is one of the SAI s main audiences Therough the media, all the audiences of the SAI can be reached SAI should assess the follow up of audit recommendations and to share such assessment with the Parliamentary committee as a follow up report The media and the citizens use audit reports as the source of factual unbiased information on the operations of the Government Media reporting on the audit reports enables greater impact of the audit reports
Cooperation with the Parliament and the media - To actively cooperate with the Parliament and the media - Committe on Finance, State Budget and Control of Public Spending Subcommittee for the Consideration of Reports on Audits Conducted by the State Audit Institution Press releases, upon publication of most of the audit reports Performance audit reports press conferences for presenting the most important findings and recommendations Annual press conference
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