Dimension 26.2. Nature of audits and standards applied

DIMENSION MEASUREMENT GUIDANCE

26.2:1. This dimension assesses the nature of audits performed and the extent of adherence to professional standards. When audit activities focus only on financial compliance (reliability and integrity of financial information and compliance with rules and procedures) the internal audit function provides limited assurance of the adequacy and effectiveness of internal controls. A wider approach as well as evidence of a quality assurance process is required to show adherence to professional standards.

26.2:2. Evaluation of the adequacy and effectiveness of internal controls requires analysis of the impact of controls, whether their impact is consistent with policy and operational objectives, and whether the controls are sufficient and most suitable to meet the intended objectives.

26.2:3. If there is no internal audit function, dimension 26.2 is NA

Dimension 26.2. Scoring

Score Minimum requirements for scores

A

Internal audit activities are focused on evaluations of the adequacy and effectiveness of internal

controls. A quality assurance process is in place within the internal audit function and audit activities

meet professional standards, including focus on high risk areas

B

Internal audit activities are focused on evaluations of the adequacy and effectiveness of internal

controls.

C

Internal audit activities are primarily focused on financial compliance

D Performance is less than required for a C score

Dimension 26.2. Timing, coverage and data requirements

Time period Coverage Data requirements/calculation Data sources

At time of

assessment

CG
  • Documented rules regulations and

    procedures on internal audit.

  • Evidence of internal audits focused

    on the evaluation of adequacy and

    effectiveness.

  • Evidence of internal audit standards

    being applied.

  • Quality assurance procedures for

    internal audit.

  • Comparison of actual audit functions

    and activities with professional

    standards

 

  • MoF (internal audit).

  • Accountant general.

  • Heads and finance officers of major

    budgetary units.

  • SAI for triangulation of information.

| Pillar Five: Predictability and Control in Budget Execution