Dimension 26.1. Coverage of internal audit
DIMENSION MEASUREMENT GUIDANCE
26.1:1. This dimension assesses the extent to which government entities are subject to internal audit. This is measured as the proportion of total planned expenditure or revenue collection of the entities covered by annual audit activities, whether or not substantive audit work (including audit reports) is carried out. Typical features of an operational audit function are the existence of laws, regulations and/or procedures, and the existence of audit work programs, audit documentation, reporting, and follow-up activities leading to the achievement of the internal audit objectives, as described in international standards. The exact nature of audit in each country may vary. The assessor will need to make a judgment about whether the arrangements and activities occurring constitute sufficient evidence of operational audit.
26.1:2. For this dimension, materiality is assessed by the relative weight (expenditure and revenue) of
central government entities where an internal audit function is operational. If for instance, an internal audit function is operational in only the Ministry of Finance, the Ministry of Health, and the Ministry of Agriculture. These three ministries collect 95% of total revenue but represent 81% of expenditure, the dimension will be scored B as an internal audit is operational in entities representing all revenue and most expenditure.
26.1:3. Assessment reports in francophone countries often refer to inspection units acting as internal audit units, when there is no dedicated audit function within a ministry. In addition to national laws and regulations, the report needs to provide clear evidence that inspection units fulfill all other features to be considered as an operational audit function, i.e., the existence of audit work programs, audit documentation, reporting, and follow-up activities leading to the achievement of the internal audit objectives, as described in international standards.
26.1:4. If there is no internal audit function, dimension 26.1 is scored D
Dimension 26.1. Scoring
|Score||Minimum requirements for scores|
Internal audit is operational for all central government entities.
Internal audit is operational for central government entities representing most of total budgeted
expenditures and for central government entities collecting most of budgeted government revenue.
Internal audit is operational for central government entities representing the majority of budgeted
expenditures and for central government entities collecting the majority of budgeted government
|D||Performance is less than required for a C score.|
Dimension 26.1. Timing, coverage and data requirements
|Time period||Coverage||Data requirements/calculation||Data sources|
At time of
PEFA Handbook Volume 1: The PEFA Assessment Process – Planning, Managing and Using PEFA