Pillar Seven: External scrutiny and audit
PI-30. External audit
Description
This indicator examines the characteristics of external audit. It contains four dimensions and uses the M1 (WL) method for aggregating dimension scores.
Dimensions and scoring
| Score | Minimum requirements for scores |
|---|---|
30.1. Audit coverage and standards |
|
| A | Financial reports including revenue, expenditure, assets, and liabilities of all central government entities have been audited using ISSAIs or consistent national auditing standards during the last three completed fiscal years. The audits have highlighted any relevant material issues and systemic and control risks. |
| B | Financial reports of central government entities representing most total expenditures and revenues have been audited using ISSAIs or national auditing standards during the last three completed fiscal years. The audits have highlighted any relevant material issues and systemic and control risks. |
| C | Financial reports of central government entities representing the majority of total expenditures and revenues have been audited, using ISSAIs or national auditing standards during the last three completed fiscal years. The audits have highlighted any relevant significant issues. |
| D | Performance is less than required for a C score. |
30.2. Submission of audit reports to the legislature |
|
| A | Audit reports were submitted to the legislature5 within three months from receipt of the financial reports by the Supreme Audit Institution for the last three completed fiscal years. |
| B | Audit reports were submitted to the legislature within six months from receipt of the financial reports by the Supreme Audit Institution for the last three completed fiscal years. |
| C | Audit reports were submitted to the legislature within nine months from receipt of the financial reports by the Supreme Audit Institution for the last three completed fiscal years. |
| D | Performance is less than required for a C score. |
30.3. External audit follow-up |
|
| A | There is clear evidence of effective and timely follow-up by the executive or the audited entity on audits for which follow-up was expected, during the last three completed fiscal years. |
| B | A formal, comprehensive, and timely response was made by the executive or the audited entity on audits for which follow-up was expected during the last three completed fiscal years. |
| C | A formal response was made by the executive or the audited entity on audits for which follow up was expected, during the last three completed fiscal years. |
| D | Performance is less than required for a C score. |
5 Or other body responsible for public finance governance.
