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INTOSAI International Journal Of Government Auditing: 

July 2006: 
Volume 33, No. 3: 

Board of Editors: 
Josef Moser, President, Rechnungshof, Austria: 
Sheila Fraser, Auditor General, Canada: 
Faiza Kefi, First President, Cour des Comptes, Tunisia: 
David M. Walker, Comptroller General, United States of America: 
Clodosbaldo Russian Uzcategui, Comptroller General, Venezuela: 

President: Helen H. Hsing (U.S.A.): 

Editor: Donald R. Drach (U.S.A.): 

Assistant Editors: 
Linda J. Sellevaag (U.S.A.): 
Christopher Lyons (U.S.A.): 

Associate Editors: 
Office of the Auditor General (Canada): 
Sudha Krishnan (ASOSAI-India): 
Luseane Sikalu (PASAI-Tonga): 
CAROSAI Secretariat (St. Lucia): 
EUROSAI General Secretariat (Spain): 
Khemais Hosni (Tunisia): 
Yadira Espinoza Moreno (Venezuela): 
INTOSAI General Secretariat (Austria): 
U.S. Government Accountability Office (U.S.A.): 

Administration: 
Sebrina Chase (U.S.A.): 

Members of the Governing Board of INTOSAI: 
Arpád Kovács, President, Allami Számvevöszék, Hungary, Chairman: 
Arturo González de Aragón, Auditor General, Auditoría Superior de la 
Federación, Mexico, First Vice-Chairman: 
Osama Jaffer Faquih, President, General Auditing Bureau, Saudi Arabia, 
Second Vice-Chairman: 
Josef Moser, President, Rechnungshof, Austria, Secretary General: 
Henri Bruno Bessin, Inspector General, Inspecteur Général d’Etat, 
Burkina Faso: 
Paul R.S. Allsworth, Director of Audit, Cook Islands Audit Office: 
Vijayendra Nath Kaul, Comptroller and Auditor General, India: 
Muneharu Otsuka, President, Board of Audit, Japan: 
Yun-Churl Jeon, Chairman, Board of Audit and Inspection, Korea: 
Guillermo Argüello Poessy, President, Consejo Superior de la 
Contraloría General, Nicaragua: 
Juergen Kosmo, Auditor General, Riksrevisjonen, Norway: 
Guilherme D’Oliveira Martins, President, Tribunal de Contas, Portugal: 
Albert Edwards, Director of Audit, National Audit Office, St. Kitts 
and Nevis: 
Faiza Kefi, First President, Cour des Comptes, Tunisia: 
Sir John Bourn, Comptroller and Auditor General, National Audit 
Office, United Kingdom: 
David M. Walker, Comptroller General, Government Accountability 
Office, United States of America: 
Guillermo Ramírez, President, Tribunal de Cuentas de la República, 
Uruguay: 
Clodosbaldo Russián Uzcátegui, Comptroller General, Venezuela: 

The International Journal of Government Auditing is published 
quarterly (January, April, July, October) in Arabic, English, French, 
German, and Spanish on behalf of INTOSAI (International Organization 
of Supreme Audit Institutions). The Journal, which is the official 
organ of INTOSAI, is dedicated to the advancement of government 
auditing procedures and techniques. Opinions and beliefs expressed are 
those of editors or individual contributors and do not necessarily 
reflect the views or policies of the organization. 

The editors invite submissions of articles, special reports, and news 
items, which should be sent to the editorial offices at: 

U.S. Government Accountability Office: 
Room 7814, 441 G Street, NW: 
Washington, D.C. 20548: 
U.S.A. 
(phone: 202-512-4707; 
fax: 202-512-4021; 
e-mail: intosaijournal@gao.gov) 

Given the Journal's use as a teaching tool, articles most likely to be 
accepted are those that deal with pragmatic aspects of public sector 
auditing. These include case studies, ideas on new audit 
methodologies, or details on audit training programs. Articles that 
deal primarily with theory would not be appropriate. 

The Journal is distributed to INTOSAI members and other interested 
parties at no cost. It is also available electronically at 
http://www.intosaijournal.org or http://wwwintosa.org and by 
contacting the Journal at spel@gao.gov. 

Articles in the Journal are indexed in the Accountants' Index 
published by the American Institute of Certified Public Accountants 
and included in Management Contents. Selected articles are included in 
abstracts published by Anbar Management Services, Wembley, England, 
and University Microfilms International, Ann Arbor, Michigan, U.S.A. 

Contents: 

New Journal Web Site: 

Editorial: 

INTOSAI Strategic Plan Focus: 

News in Brief: 

Twinning: A Mechanism for Capacity Building: 

Regional E-Learning Workshop: 

Ninth SPASAI Congress: 

Audit Profile: Spain: 

Reports in Print: 

Inside INTOSAI: 

IDI Update: 

INTOSAI Calendar: 

[End of section] 

Editorial: 

The Establishment of the INTOSAI Capacity Building Committee: 

Dr. Ahmed El Midaoui, First President of the Court of Accounts of the 
Kingdom of Morocco and Chairman of the INTOSAI Capacity Building 
Committee: 

[Photograph of Dr. Ahmed El Midaoui] 

I am honored to have the opportunity to write this editorial on the 
work of the INTOSAI Capacity Building Committee (CBC) and its future 
plans. 

On its 50th anniversary, INTOSAI adopted a strategic plan to guide its 
activities for 2005-2010. This plan called for the creation of the CBC 
to enhance the professional capabilities of SAIs through training, 
technical assistance, advisory and consultant services, peer reviews, 
partnerships with international organizations, and other development 
activities. 

I was elected CBC chairman at the extraordinary INTOSAI Governing 
Board meeting held in Budapest in March 2005. At the same time, the 
U.S. Government Accountability Office (GAO) was elected to be the 
liaison for goal 2, institutional capacity-building, of the strategic 
plan. 

Working in close collaboration with the goal 2 liaison, INTOSAI's 
General Secretariat, the SAIs of the United Kingdom and Norway, and 
the INTOSAI Professional Standards Committee (PSC), the Court of 
Accounts of the Kingdom of Morocco drafted the CBC's terms of 
reference. This document was discussed and refined at various meetings 
and subsequently forwarded to about 20 SAIs, inviting their comments 
as well as their participation in various projected CBC entities. The 
Moroccan Court of Accounts received a number of comments and 
suggestions that were incorporated into the document. 

The Court of Accounts of the Kingdom of Morocco invited SAIs and 
representatives of INTOSAI regional groups to become members of the 
CBC. At the 54th meeting of the INTOSAI Governing Board in Vienna in 
November 2005, the terms of reference were discussed and officially 
adopted. 

Subsequently, the Moroccan Court of Accounts organized the CBC's 
inaugural meeting, which was hosted in London by the U.K. National 
Audit Office on March 13 and 14, 2006. About 30 SAIs representing all 
INTOSAI regions and different auditing systems attended this meeting 
to clarify the CBC's mission and objectives, agree on
the composition of its different entities, and set the entities' 
priorities and work plans to achieve the goals that INTOSAI had 
assigned to the CBC. In accordance with the terms of reference, the 
following official entities were constituted at the meeting: the main 
committee, the steering committee, and three subcommittees. 

The main committee is the CBC's superior body. It is open to all SAIs 
that wish to join it. Its members constitute a network of resources 
able to accomplish the different tasks the subcommittees undertake. 

The steering committee coordinates the CBC's work and develops 
partnerships with international development organizations. It consists 
of the CBC chair, the goal 2 liaison, chairs of the subcommittees, 
representatives nominated by each INTOSAI region (AFROSAI, ARABOSAI, 
ASOSAI, CAROSAI, EUROSAI, OLACEFS, and SPASAI), the chair of the PSC 
(goal 1) or his representative, and representatives of the INTOSAI 
General Secretariat and IDI, who participate as observers. The steering
committee is expected to meet annually or semiannually, and its next 
meeting will take place in Mexico in November 2006. 

The CBC has the following three subcommittees: 

* Subcommittee 1: Promoting increased capacity-building activities 
among INTOSAI members (chaired by the United Kingdom). 

* Subcommittee 2: Developing advisory and consultancy services 
(chaired by Peru). 

* Subcommittee 3: Promoting best practices and quality assurance 
through voluntary peer reviews (chaired by Germany). 

CBC Tasks in the Coming Years: 

In accordance with goal 2 of the INTOSAI strategic plan, the CBC's 
mandate is to build up the professional capabilities of SAIs through 
training, technical assistance, and other development activities. To 
reach its goals, the CBC will work to promote the transfer and 
application of knowledge and skills relating to SAIs' organization and 
work; focus on the strategic development of SAIs as institutions and 
the professional development of their human resources; and achieve and 
sustain programs designed to develop the capabilities of SAI members 
globally, regionally, and locally. 

The CBC recognizes the importance of consulting regularly with INTOSAI 
members and managing authorities and coordinating with IDI. The chair 
will consult with the chairman of the INTOSAI Governing Board, the 
Secretary General of INTOSAI, and the goal 2 liaison to help ensure 
that the CBC's work plans and activities are in conformity with the 
INTOSAI strategic plan. 

The CBC chair will assist the subcommittee chairs in planning and 
coordinating their work to avoid duplication of effort or overlap in 
the subcommittees' activities and projects. As the work develops, the 
steering committee will collaborate with the goal liaison to raise 
needed funds without compromising INTOSAI's independence. 

Since the CBC's inaugural meeting, the steering committee has 
continued its work of providing guidance and direction to the 
committee. The subcommittees, which constitute the backbone of the 
CBC, have already begun to finalize their work plans. 

Subcommittee 1 (promoting increased capacity-building activities among 
INTOSAI's members) is working to strengthen institutional capacities, 
coordinate SAI capacity-building projects, collect and disseminate 
information on the capacity-building projects that SAIs have 
undertaken, develop and disseminate best practices, develop a bank of 
generic training materials on key areas of SAI work, identify 
opportunities for distance learning, and coordinate complementary and 
joint actions between INTOSAI and IDI. 

Subcommittee 2 (developing advisory and consulting services) is 
working to develop a database of experts and investigators, encourage 
joint and coordinated or parallel auditing programs, and promote 
internships and visit programs. 

Subcommittee 3 (promoting best practices and quality assurance through 
voluntary peer reviews) is working to assess and document existing 
peer reviews, foster an environment to share best practices, and 
prepare best practice guidelines. 

Every third year, the CBC intends to survey SAI capacity-building to 
measure progress toward achieving the CBC's strategic goals and to 
identify and initiate new projects. 

Concluding Remarks: 

Although the CBC is just beginning its work, many activities have 
taken place since its inception. I am very pleased with the outcomes 
of the inaugural meeting in London and the committee's overall work 
plan for the future. I would like to assure INTOSAI members that the 
CBC will continue to cooperate and communicate with representatives of 
other strategic goals and INTOSAI bodies to ensure the effective 
implementation of a capacity-building strategy. 

For more information, contact Dr. El Midaoui at: 

ccomptes@courdescomptes.ma. 

[End of section] 

INTOSAI Strategic Plan Focus: Building On The Past, Creating The 
Future: 

Inaugural Meeting of the INTOSAI Capacity Building Committee
In March 2006, officials from 32 SAIs, including 10 auditors general, 
gathered in London for the inaugural meeting of INTOSAI's Capacity 
Building Committee (CBC). Established by the Governing Board to 
implement goal 2 of the INTOSAI strategic plan, the committee is 
chaired by Dr. Ahmed El-Midaoui, President of the Court of Accounts of 
Morocco. The opening session of the meeting included remarks from Sir 
John Bourn, meeting host; Dr. Arpad Kovacs, President of INTOSAI; Mr.
David Walker, goal 2 board liaison; and Dr. El-Midaoui. 

[Photograph: Delegates to the CBC's inaugural meeting in London in 
March 2006] 

Dr. El-Midaoui began the working sessions by explaining the proposed 
structure for the CBC and outlining the terms of reference for the 
full committee, its steering committee, and three subcommittees (see 
editorial, page 1). Subcommittee 1, chaired by the United Kingdom with 
the Cayman Islands as vice-chair, will promote capacity-building 
activities among SAIs. Subcommittee 2, chaired by Peru with Kazakhstan
as vice-chair, will develop advisory and consultant services. 
Subcommittee 3, chaired by Germany with Bangladesh as vice-chair, will 
promote best practices and quality assurance through voluntary peer 
reviews. 

During their discussions, committee members confirmed the importance 
of fully integrating the INTOSAI Development Initiative (IDI) into the 
CBC's work and developing close links with other INTOSAI committees 
and regional organizations. The committee will also seek to address 
the needs of the different types of SAIs. Members generally agreed on 
the current terms of reference but commented that subcommittees should 
be allowed to move beyond them, if necessary, to achieve the CBC's 
overall goals. Specific comments on the individual subcommittees 
stressed the voluntary nature of peer reviews. Members also agreed to 
change the second task of the first subcommittee from "coordinating 
all SAIs' capacity-building projects" to "facilitating the 
coordination of SAI capacity-building projects." 

Subcommittee 1: Promoting Increased Capacity-Building Activities: 

The first subcommittee discussed the need to facilitate the long-term 
sustainable development of SAIs and not to duplicate existing 
technical activities of other INTOSAI working groups or IDI. All SAIs 
can benefit from continuous improvement and should identify their own 
development needs based on their own mandates and traditions. 
Following the discussion, the subcommittee agreed to a set of outputs 
and a timetable. 

The subcommittee will first identify tools available to determine 
development challenges for SAIs; a draft paper on this subject will be 
circulated for comment from committee members and others who have used 
the tools. The goal is to produce a final paper and case studies by 
April 2007. The subcommittee will also draft a paper identifying key 
successes and major risk factors in capacity-building, with a final 
paper to be prepared by March 2007. After completing activities 1 and 
2, the subcommittee will consider developing a survey of SAIs' 
experiences as both recipients and providers of capacity-building. 
Finally, the subcommittee will compile a directory of current
capacity-building projects in SAIs worldwide by December 2006; this 
directory will be updated every 6 months. 

Subcommittee 2: Developing Advisory and Consultant Services: 

The second subcommittee discussed each of its three areas of 
responsibility. First, the SAI of Peru agreed to lead an effort to 
develop a database of experts from various SAIs. The database is to be 
an open access tool, with contact information for experts broken down 
by language capability and general categories of expertise, such as 
financial, performance, compliance, and IT auditing. Areas of special 
expertise, such as human capital or strategic planning, will also be 
identified. The SAI of the United States, in its role as goal 2 
liaison, agreed to assist the chair with this work. 

The subcommittee's second activity is to encourage joint and 
coordinated or parallel auditing programs. The SAI of Fiji volunteered 
to draft a two-part survey on SAIs' experiences in joint auditing, if 
any, and areas in which SAIs are interested in working together in the 
future. Since this activity involves knowledge sharing, the 
subcommittee will need to coordinate with the goal 3 liaison (India). 

The subcommittee then discussed the potential cost and preparatory 
work required for its third activity--encouraging internships and 
visit programs. The subcommittee agreed that a survey might be needed 
to identify the demand for internship and visit programs and that it 
could likely determine the demand by using the same categories 
identified for the database of experts to be compiled under its first 
activity. The survey would also address supply questions, such as the 
nature, frequency, number, and length of programs that SAIs might be 
able to host. The SAI of Fiji agreed to link this survey with the 
survey for the subcommittee's second activity and prepare a draft of 
both before the end of 2006. 

Subcommittee 3: Promoting Best Practices and Quality Assurance through 
Voluntary Peer Reviews: 

The subcommittee discussed different forms and methods of peer review 
and compared experiences and issues, including such practical aspects 
as how peer reviews are paid for and terms of reference are agreed 
upon. While agreeing that peer reviews are a positive tool, the 
subcommittee noted that there has been little evaluation or feedback 
from the SAIs that have undergone them. The subcommittee agreed that 
prior to the next INTOSAI congress, it will assess SAIs' prior 
experiences of peer reviews through a survey; organize a symposium for 
those with experiences of peer reviews to share, identify, and develop 
best practices; and publish a best practices guide to be disseminated, 
after standard due process, at the next congress. 

Strategic Issues and Next Steps for the CBC: 

The CBC will consider the proposed activities of each subcommittee and 
their likely costs. Through the steering committee, these activities 
and costs will be prioritized and likely funding partners identified. 
The CBC's financial requirements, along with requests from other 
INTOSAI committees, will then be considered by the INTOSAI Finance and 
Administration Committee and the INTOSAI Governing Board.
This will enable INTOSAI to present a unified approach to global 
international organizations when making requests for limited funds. 

For more information, contact the CBC: 

Fax: ++212 (37) 71 18. 
E-mail: ccomptes@courdescomptes.ma. 

[End of section] 

News in Brief: 

Bangladesh: 

Meeting of ASOSAI Research Project on Audit Quality Management Systems: 

The Comptroller and Auditor General's Office of Bangladesh (CAG) 
hosted the sixth meeting of the seventh ASOSAI Research Project on 
Audit Quality Management Systems (AQMS) in Dhaka, Bangladesh, in April 
2006. Representatives from the seven SAIs on the research project team 
(Bangladesh, China, India, Malaysia, Pakistan, the Philippines,
and Yemen) attended the meeting. This research project was adopted 
during the 33rd ASOSAI Governing Board meeting held in Manila, 
Philippines, in October 2003. Its purpose is to provide specific 
guidance to member SAIs in establishing an audit quality management 
system. 

Asif Ali, Comptroller and Auditor General of Bangladesh, inaugurated 
the meeting and delivered the keynote address, stating that his 
office's strategic plan for 2003-2006 includes the research team's 
important recommendations for ensuring quality audit management. He 
expressed his hope that AQMS will enhance the capacities of the ASOSAI 
members to produce quality audit reports. 

During the meeting, an update was provided on progress in the various 
phases of the research project. The research team compiled a listing 
of auditing practices in the public and private sectors and developed 
draft audit quality management guidelines. The guidelines were piloted 
in several SAIs, including those that are members of the research 
project. Finally, the lessons learned from the pilots were reviewed, 
and a final project document is being prepared to be presented at the 
10th ASOSAI Assembly in China in September 2006. 

Training Program for Auditors from Sri Lanka: 

At the request of the Auditor General's Department of Sri Lanka, the 
CAG held a training program for 15 officers of that SAI at the 
Financial Management Academy (FIMA) in January and February 2006. The 
course contents included an introduction to the SAI of Bangladesh, an 
overview of audit planning and execution processes, practical 
exercises in system-based auditing, planning and execution of 
environmental audits, auditing of relief and rehabilitation efforts 
after natural disasters, risk-based auditing, value-for-money 
auditing, and report writing. 

This is the second training program that FIMA arranged for overseas 
participants. The first provided training for 24 treasury officers of 
the government of Timor Leste in 2004 and 2005. 

The Sri Lankan High Commissioner thanked the CAG for facilitating the 
training program and noted that it will enhance the capacity-building 
process of the Sri Lankan Auditor General's office and further cement 
the friendly ties between Bangladesh and Sri Lanka. 

The officers of the Sri Lanka SAI received certificates for the 
training program at a ceremony held at FIMA on February 16, 2006. A.K. 
Azizul Huq, former Comptroller and Auditor General of Bangladesh, 
presented the certificates to the participants. 

For additional information, contact the CAG: 

Fax: ++880 (2) 831 26 90. 
E-mail: international@cagbd.org. 
Web site: www.cagbd.org. 

Greece: 

Training Activities for the Court of Audit: 

In June 2006, a seminar entitled The Hellenic Court of Audit and the 
Preaudit of Expenditures was held at the National School for Judges in 
Thessaloniki for judges and judicial employees of the Hellenic Court of
Audit. The seminar addressed issues such as expenditures and accounts, 
the role of accounting officers in local government, the legal nature 
of imputation and expenditure, and the legalization of the expenditure 
by the legislature. 

Many judicial employees attended the annual training seminar on 
information technology that was held at the court in February 2006. 
After a preaudit of local government was assigned to the Court of 
Audit, a training course was held for judicial employees of the court 
to familiarize them with this issue. Finally, training programs on 
foreign languages (English, French, and Spanish) were organized for 
court judges and judicial employees. 

For additional information, contact the Court of Audit: 

Fax: ++30 (210) 64 66 604. 
E-mail: elesyn@otenet.gr. 

Malawi: 

Death of Auditor General: 

The National Audit Office (NAO) of Malawi regrets to inform the 
INTOSAI community that Henry Kalongonda, the Auditor General of 
Malawi, died unexpectedly on January 24, 2006. Mr. Kalongonda joined 
the NAO in April 1971 and rose through the ranks to become Auditor 
General in July 1997. 

Mr. Kalongonda worked to improve the NAO and strengthen the skills and
competencies of his staff. He sought to develop a multidisciplinary 
audit office that would promote good governance, accountability, 
transparency, and sound financial management in the Malawi public 
sector. He is remembered by staff as a professional and loyal boss.
In accordance with article 184 of the Constitution of the Republic of 
Malawi, the president has the responsibility of appointing a new 
auditor general, and the appointment must be approved by the National 
Assembly. 

International Cooperation Project to Develop the NAO: 

The NAO of Malawi operates in a difficult environment, with limited 
financial support and human resources. In addition, it lacks the 
independence from the executive it needs to carry out its legal audit 
obligations. 

Despite these difficulties, the NAO is continuously developing its
competencies and capabilities so that it can become a more effective 
and efficient watchdog over public sector resources in Malawi. The 
National Audit Office of Malawi-Swedish National Audit Office 
Institutional Cooperation Project is an important part of this 
development process. 

The project is cofinanced by the governments of Norway and Sweden. Its 
overall objective is to contribute to the economic development of
Malawi and increase confidence in the government by improving 
transparency and accountability in government administration. The 
project also aims to improve confidence in and the credibility of the 
NAO. 

To achieve its objectives, the project has been divided into the 
following 10 modules: 

* strengthening the human resource skills of management; 

* increasing and improving levels of internal training; 

* strengthening parastatal auditing; 

* strengthening performance auditing; 

* developing a code of ethics, auditing standards, and detailed 
guidelines for financial, parastatal, IT, and performance auditing and 
sound quality control; 

* improving IT skills and increasing the use of IT, including 
development of IT auditing and control of IFM IS (Integrated 
Facilities Management Information Systems); 

* improving audit planning and introducing a consolidated NAO annual 
plan; 

* paying increased attention to global auditing trends; 

* improving public relations activities and communications with the 
media; and; 

* promoting staff welfare activities, including those related to HIV/ 
AIDS. 

Phase two of this project began in early 2005, and the NAO is pleased 
with the progress thus far. To date, 22 activities have been carried 
out successfully within the 10 modules, and 10 new activities are in 
progress. The activities have targeted all staff, and care has been 
taken to ensure that staff members stationed away from headquarters 
receive the same training opportunities. To ensure sustainability and 
ownership, the NAO has tried to involve audit and support staff in the 
design, presentation, and implementation of all project activities. 

Despite good progress, there is room for improvement. One challenge is 
the limited number of NAO audit staff, which has increased their work 
burden and restricted the time available to include staff in training 
activities as well as in the development and implementation of project 
activities. The NAO is currently recruiting a number of new audit 
staff and hopes that this will help to reduce the problem of staff 
shortages. 

For additional information, contact the National Audit Office of 
Malawi: 

Project Manager Tim Mponela, e-mail: tmponela@gmail.com; 

or the NAO-SNAG Institutional Cooperation Project: 

Long Term Advisor Einar Gorrissen, e-mail: einargorrissen@gmail.com. 

Malaysia: 

National Audit Convention and Other Events Mark Centenary of the 
National Audit Department: 

In 2005, the National Audit Department of Malaysia (NAD) celebrated 
its 100th anniversary with a number of special events, including the 
opening of the National Audit Academy in November, a National Audit 
Day in December, and a National Audit Convention in February 2006. 

[Photograph: Speakers at the Malaysian National Audit Convention] 

The National Audit Convention was designed to promote greater
understanding of good governance and accountability. The convention, 
officiated by the Honorable Tan Sri Ramli Ngah Talib, Speaker of 
Parliament, chose as its theme Accountability and Good Governance: 
Auditors - Where Are You? The attendees included almost 400 delegates 
from ministries, statutory bodies, local authorities, private audit 
firms, government-linked companies, and professional bodies as well as 
distinguished speakers and guests from Australia, Indonesia, and South 
Africa. The convention gave auditors, management practitioners, and 
the public an opportunity to discuss the interrelationship between 
good governance and accountability in the public sector; issues, 
challenges, ands way to meet stakeholders' expectations; and other 
countries' experiences in tackling these issues. 

Two papers were presented during the convention. The first, by Y.B 
Dato' Shahrir b. Abdul Samad, chairman of the Public Accounts 
Committee, dealt with auditors' roles and public expectations in 
relation to accountability and good governance. 

The second, by Dr. Anwar Nasution, Chairman of the Indonesian Supreme 
Audit Board, addressed ethical issues in auditing practice. 

A panel discussion on issues and challenges in accountability and good 
governance gave the perspectives of both developed and developing 
countries. The panel members were Patrick Joseph Barrett, former 
Auditor-General of Australia, and Shauket A. Fakie, Auditor-General of 
South Africa. Tan Sri Dr. Hadenan bin A. Jalil, the Auditor-General of
Malaysia, moderated the discussion. 

The program provided public and private sector auditors an opportunity 
to learn about principles of accountability and good governance, to 
exchange ideas, and to discuss current issues and challenges affecting 
the auditing profession. 

Visit by Delegations from Indonesia and Nigeria: 

In February 2006, I.G. Agung Rai headed a four-member delegation from 
the Audit Board of the Republic of Indonesia to the NAD to discuss 
technical cooperation in capacity-building and taxation auditing. The 
delegates were also briefed on the development of the NAD and current 
steps the office is undertaking to modernize auditing in Malaysia. The 
delegates visited the National Audit Academy and held discussions with 
NAD officers at the audit branch of the Inland Revenue Department. 

In March 2006, a delegation of nine members from the Senate and House 
committees of the Nigerian Parliament visited the NAD to study 
Malaysia's financial reporting system. The delegation visited the 
Auditor-General of Malaysia, and the Deputy Auditor-General briefed 
them on the NAD's roles and responsibilities and other audit-related 
issues. 

For additional information, contact the NAD: 

Fax: ++60 (3) 88 88 97 01. 
E-mail: jbaudit@auditgov.my. 
Web site: www.auditgov.my. 

Paraguay: 

New Auditor General: 

In August 2005, Octavio Augusto Airaldi was named Comptroller General 
of Paraguay. Mr. Airaldi was selected from candidates proposed by the 
Paraguayan Senate. He took an oath of office to serve a 5-year term
in accordance with the Constitution. Mr. Airaldi was born in Asunci6n, 
Paraguay, on April 11, 1938. He is a lawyer with a master's degree in 
strategic national planning and administration. He also has a diploma 
in criminal sciences from the Institute of Social and Criminal 
Sciences. 

[Photograph: Octavio Augusto Airaldi] 

From January 1996 through July 1998, he served as director of the Office
of Legal Consulting and coordinator of the General Directorate of 
Natural Resources and Environment. From 1998 through 2004, he was 
general director of natural resources and the environment. In this 
role, he received a plaque of recognition from the Executive Committee 
of the Office of the Comptroller General of Paraguay. 

In addition, he was dean of the Faculty of Notary Law and Social 
Sciences at the Technical University of Commerce and Development, as 
well as chair of the civil contract law course of the Faculty of Legal 
and Diplomatic Sciences at Our Lady of Assumption Catholic University. 

He participated in a judicial transparency project to prosecute cases 
of corruption and in training workshops for auditors of the 
Comptroller General's Office and for fiscal auditors of the Public 
Ministry. He has also participated in OLACEFS courses on international 
environmental auditing and on detecting and investigating fraud and 
corruption. He has been a presenter on political and environmental 
issues at national and international congresses and symposia. 

For additional information, contact the Office of the Comptroller 
General of Paraguay: 

Fax: ++595 (21) 60 11 52, 66 28 77. 
E-mail: ddo@contraloria.gov.py. 
cgrdesarrollo_py@hotmail.com. 

Russia: 

Videoconference for SAI Heads of G8 Countries: 

In advance of the July 2006 conference of G8 nations in St. 
Petersburg, Russia, Sergey Stepashin, chairman of the Accounts Chamber 
of the Russian Federation, organized a 3-hour videoconference for the 
heads of supreme audit institutions (SAIs) of 7 of the G8 countries. 
Participants in the June 7, 2006, videoconference discussed the three 
themes that Russia identified as priorities for its presidency of the 
G8 in 2006: energy security, infectious disease control, and 
education. The discussions focused on strategies for promoting 
international collaboration and cooperation among SAIs. In addition to 
Mr. Stepashin, the auditors general from Canada, Germany, Italy, 
Japan, the United Kingdom, and the United States participated in the 
videoconference. 

[Photograph: Participants in the June 2006 videoconference of G8 
country SAIs] 

In preparation for the videoconference, each country submitted papers 
on the three themes, summarizing the work of its SAI on those issues 
and identifying areas for possible future collaboration. Russia led 
the discussion on energy security and education, while the United 
States led the discussion on infectious disease control. The 
participants identified a number of opportunities for collaboration. 
These included identifying and sharing best practices for assessing 
the vulnerability of critical energy facilities, developing and 
applying consistent methodologies for assessing national pandemic 
preparedness, and sharing methodologies for determining the cost-
effectiveness of education expenditures. Participants agreed that
the videoconference was an excellent example of leveraging technology 
to promote knowledge sharing and an efficient use of time and 
resources; they expressed interest in holding similar videoconferences 
in the future. 

For additional information, contact the Accounts Chamber of the 
Russian Federation: 

Fax: ++7 (495) 247 31 60. 
E-mail: inorg@ach.gov.ru. 
Web site: www.ach.gov.ru. 

Switzerland: 

Successful Peer Review of the Swiss Federal Audit Office: 

A recent peer review concluded that the Swiss Federal Audit Office 
(SFAO) carries out its work with professionalism, care, and 
objectivity. As a result, the SFAO enjoys a favorable reputation for 
the reliability, impartiality, and integrity of its findings and 
conclusions with both the bodies it audits and the recipients of its 
work in the legislature. The peer review also included recommendations 
on such issues as the choice of audit themes, audit mandates, the 
executive agencies that operate under a regime of financial 
devolution, and the provision of support and advice to the 
legislature. The peer review was conducted by the SAI of Germany and 
led by its president. 

INTOSAI recommends that SAIs' work be reviewed by their peers in other 
countries. In the summer of 2004, the Joint Finance Committee of the 
two houses of the Swiss Parliament approved a peer review by the 
German SAI to examine whether the SFAO carries out its statutory 
mandate in an effective and professional way and whether the resources 
allocated to the internal audit function are adequate. The SFAO also 
expected a technical assessment of its planning and work processes, 
its use of resources, and its knowledge management, as well as advice 
about potential areas for improvement. The peer review did not include 
an evaluation of public sector audit and financial oversight 
mechanisms at the federal or other levels of government. 

In its report on the SFAO's performance, the German SAI concluded that 
the SFAO is an effective tool for the external audit of the Swiss 
federal government and fulfills its statutory functions. The German 
SAI found that many SFAO audit resources are committed to obligatory 
audit mandates of national and international bodies and recommended 
ways to limit those commitments so that the SFAO would be better able 
to address new challenges. The report further notes that staff 
resources are adequate and that compared to other audit institutions, 
SFAO assigns a large proportion of its staff resources to audit work, 
thus keeping administrative staff allocations to a minimum. 

The report recommends developing a methodology for selecting audit 
themes based on risks related to the audited bodies and the type of 
government operations. In the German SAI's view, enhancing the 
targeting of audit themes would give more weight to the SFAO's audit 
findings and conclusions. 

Finally, the report notes that the Parliament, the government, and the 
public administration need objective, knowledgeable, and competent 
analyses that go beyond the review of postaudit findings. Therefore, 
the German SAI concluded that SFAO advice about financial risks and 
potential savings could be of great benefit if it were used as an 
input for decision-making. To perform such a support function, the 
SFAO would need to be able to dedicate increased staff resources to 
investigating key issues on a more timely basis, and general 
conditions would have to be created to match the SFAO's need for 
independent advice with its scope for action. In doing so, SFAO's 
independence would need to be effectively safeguarded in the face of 
changing demands for the performance of its functions. If SFAO's 
advisory role were enhanced, its independence would be even more 
important than it currently is. 

As a result of the peer review, the SFAO has shifted the emphasis of 
its work to cross-cutting matters in order to strengthen its advisory 
work for the Parliament. 

For additional information, including an abridged report of the peer 
review, please contact the SFAO: 

Fax: ++41 (31) 323 11 01. 
E-mail: info@efk.admin.ch. 
Web site: www.efk.admin.ch. 

ICGFM: 

Consortium Celebrates 20th Year: 

The International Consortium on Government Financial Management 
(ICGFM) hosted its 20th international conference in Miami, Florida; 
United States, May 7-12; 2006. Presentations, case studies, and 
discussions explored this year's conference theme, Examining 
Achievements and Exploring Opportunities. International speakers 
included Gene L. Dodaro, Chief Operating Officer, U.S. Government 
Accountability Office; Charles-Antoine St-Jean, Comptroller General, 
Canada; and Arpad Kovacs, President, Hungarian State Audit Office. 
Officials representing government and private organizations from more 
than 33 countries attended the conference. 

For additional information, contact ICGFM: 

Fax ++(202) 624-5473. 
E-mail: ICGFM@yahoo.com. 
Web site: www.ICGFM.org. 

[End of section] 

Twinning: A Mechanism for Delivering Capacity Building in SAIs: 

By Bill Burnett, United Kingdom National Audit Office: 

[Editor's note: Bill Burnett is one of two directors at the U.K. NAO 
responsible for international relations and technical cooperation. He 
has worked at the NAO for more than 30 years and has been closely 
involved in twinning projects as both an adviser and project leader.
In this article, he draws on his experience, primarily within the 
context of the European Union, to identify key elements of successful 
twinning projects.] 

For some people, twinning means nothing more than a sign at the 
entrance to a town or village. To others, it means an occasional 
exchange visit and a chance for civic dignitaries to swap pleasantries 
and gifts. But for evolving SAIs, twinning can be a crucial part of 
their efforts to acquire the skills and expertise they need to meet 
the challenges of public sector audit in the modern world. 

In recent years, capacity-building in SAIs has become a hot topic, as 
recognized in the establishment of the new INTOSAI Capacity Building 
Committee. Driven by European Union (EU) enlargement, twinning has 
been used to support capacity-building in Central and Eastern European 
public sector institutions, including SAIs, for several years. Such 
arrangements allow candidate countries to benefit from the 
availability of European Commission funding to promote capacity-
building by developing the skills needed to carry out their functions 
in line with best international practice. 

The funding provides for a resident twinning adviser (RTA) from a 
member state SAI to be based full time in the candidate country SAI 
for up to 3 years. Short-term experts are also used to provide support 
on specific activities within twinning projects. Unlike traditional 
technical assistance, which is generally made up of short-term 
interventions such as training or workshops, twinning is a longer term 
mechanism aimed at delivering sustainable long-term change. 
Recognizing that fundamental change can take some time to achieve, 
European Commission funding for twinning is also available, for a 
limited period, to new EU member states. 

For twinning to be most effective in delivering beneficial change, it 
must provide the right expertise at the right time. The beneficiary 
must have a clear view of where it wants to be and how to get there so 
that the twinning can be tailored accordingly. To achieve this end, 
the key stages identified in the following sections must be recognized 
and addressed. 

Identifying Needs and Required Changes: 

First, the beneficiary must identify its needs. This can be done 
through a self-assessment process or peer review; in either case, it 
must be carried out thoroughly and in a spirit of openness and honesty 
if it is to be worthwhile. 

Beneficiaries may have to face some harsh and difficult realities, but 
there is little point in glossing over the issues. Nor is there any 
point in dwelling on and defending past practices if they are no 
longer appropriate. If the beneficiary cannot accept this, change 
becomes even more difficult. At the same time, such an exercise needs 
to be carried out sympathetically and constructively, with the results 
presented in a way that takes account of the often difficult 
environment in which the host SAI operates. 

Typically, the required changes will involve revisions to audit 
legislation, greater independence, better follow-up and implementation 
of audit findings, and improved audit methodologies. Perhaps the most 
important—and often least recognized—factor is the need to change the 
organizational culture and the people who work in it. Change 
management in an SAI can succeed only if employees at all levels are 
convinced that it is the right thing to do. This conviction must be 
genuinely held and understood at all levels of the organization and 
demonstrated throughout the change management process. Open and honest 
communication is essential if trust and commitment are to be 
maintained. 

Developing a Strategic Plan: 

Once the required changes are identified, they need to be prioritized 
and incorporated into a strategic development plan that sets out 
priorities and a realistic timetable for change and identifies the 
most appropriate way to bring about change. The plan should allocate 
responsibilities to individual members of staff and working groups and 
involve staff at all levels of the organization to encourage ownership 
and commitment. 

The plan should be discussed with external stakeholders as well as 
employees. External discussion is particularly important where desired 
changes are dependent upon the support of others—particularly 
Parliament, in the case of legislative changes. The plan must 
recognize that during the change process, the SAI has its day-to-day 
job to perform and take this into account when prioritizing and 
planning work, particularly for smaller SAIs, where flexibility in 
resource use is likely limited. 

It is likely that developing SAIs will need help in preparing their 
strategic plans. SAI twinning in Europe has benefited greatly from the 
assistance of SIGMA[Footnote 1] in advising developing SAIs on where 
they need to improve and helping them to develop a workable strategic 
plan. 

Choosing the Twinning Partner: 

The next stage is for the beneficiary SAI to choose its twinning 
partner from those EU member state SAIs (or, in many cases, 
partnerships of SAIs) that have expressed an interest in participating 
in the project. The relationship between the partners should develop 
mutual understanding of the beneficiary's needs, agreement on
how the proposed twinning project can assist in meeting those needs, 
and mutual commitment to future success. The importance of personal 
relationships should not be underestimated, making the choice of the 
RTA critical. He or she must have the trust and respect of the 
beneficiary. 

The Twinning Work Plan: 

Typically, a twinning project will be managed by the RTA and a 
counterpart from the beneficiary institution and supported by a number 
of short-term experts. The project will have the following components: 

* a detailed situation analysis, including a review of legislation, 
audit practices, human resources management, and information 
technology; 

* a technical training component providing classroom training—in such 
areas as financial and performance audits, use of IT, and fraud and 
corruption; 

* pilot audits aimed at putting classroom training into practice; 

* development and testing of audit manuals; 

* development and implementation of a human resources strategy involving
recruitment, staff training, and development of job competencies; and; 

* development and implementation of an IT strategy to support the 
twinning project and strategic plan. 

Key Success Factors for Sustainability: 

A twinning project itself provides no guarantee that changes will be 
sustainable. A number of factors are critical if the beneficiary is 
going to achieve lasting organizational differences. These include the 
need for senior management in both the beneficiary SAI and its 
twinning partner, particularly the RTA and project leader, to maintain 
their commitment to the project. 

Partners should also communicate openly and honestly and be willing to 
make difficult decisions. The beneficiary should be prepared to 
challenge the provider SAI on why things are done in a particular way, 
and the provider should respond positively to that challenge. 

An internal steering committee--chaired at a senior level--should be 
established to demonstrate management's commitment to the project, and 
it should be given the power to overcome any difficulties that arise. 
Working groups should be established to take responsibility for 
implementing the various components of the work plan. 

Careful consideration needs to be given to the absorption capacity of 
the host SAI and, when determining work plan activities, there should 
be a clear link back to the strategic plan. Targets and interim 
milestones should be set and used to review progress regularly, and 
the plan should be adjusted if necessary. 

The use of short-term experts should be consistent so they can 
establish good working relations with beneficiary staff over the 
lifetime of the project. Both partners need to be flexible when 
revising activities, if this proves to be necessary. A clear link 
between activities will ensure that theory is tested in practice and 
set out in clear guidance and manuals. 

The work plan should be clearly communicated to all staff and 
interested parties, together with an explanation of how the project 
fits into the wider strategic plan. The twinning partner should not 
seek to impose its own processes and procedures on the beneficiary but 
rather adapt to the local environment. "Twinning, not cloning" should 
be the mantra. 

Care should be taken to ensure that the twinning project takes account 
of broader developments in public financial management within the 
beneficiary country Risks to sustainability should be identified so 
that a strategy to mitigate them can be developed. 

Post-Twinning: 

At the conclusion of the project, the beneficiary should be well on 
its way to successfully implementing its strategic plan and having the 
structures in place to ensure a positive outcome. This can, however, 
be a particularly difficult time for the beneficiary. Without 
continuing support and commitment, the temptation will be to fall back 
into the old ways of doing things. Ideally, the support of the 
twinning partner should continue in a reduced way, although this may 
not always be possible. At this stage, the strength of the 
beneficiary's commitment to change will be tested, and the
success of the twinning project can start to be assessed. 

A twinning expert group has been set up by a number of European SAIs 
that have either provided or benefited from twinning assistance. The 
group is preparing a practical guide to twinning that will be 
available in the near future. 

For further information on this group or the U.K. NAO's twinning work, 
contact the author at billburnett@nau.gsigov.uk. 

Footnote: 

[1] SIGMA (Support for Improvement in Governance and Management) is a 
joint initiative of the EU and the Organisation for Economic Co-
operation and Development. 

[End of section] 

Meeting New Learning Challenges: How IDI and OLACEFS Delivered the 
First Regional E-Learning Workshop: 

By Patrick Callaghan, U.K. National Audit Office, and Elizabeth 
Walmann, IDI: 

[Editor's note: In the October 2004 issue of this Journal, Patrick 
Callaghan, then E-Learning Manager for the INTOSAI Development 
Initiative (IDI), discussed how e-learning could enhance training and 
capacity-building in the international SAI community. In this article,
Patrick Callaghan and Elizabeth Walmann report on the challenges and 
results of developing INTOSAI's first regional e-learning course.] 

IDI's Strategic Plan Commitment to E-Learning: 

IDI is nearing the end of its strategic plan for 2001-2006. The plan 
commits IDI to five goals that members of the INTOSAI community 
identified as priorities in the late 1990s. The fifth goal sought to 
"explore the potential of distance learning programs," and IDI 
embarked on its first e-learning project to meet this commitment. 

IDI has a long and distinguished history of engaging INTOSAI's regions 
in capacity-building programs to meet developmental needs. From 2001-
2003, the first 3 years of the IDI's strategic planning cycle, 
substantial progress was made on goals 1-4 of the strategic plan. At 
the end of 2003, IDI began work on goal 5. Since e-learning had never 
before been used as a methodology for meeting regional needs, IDI 
looked for a region, a demand, and a partner to deliver a project that 
would explore the potential of e-learning. 

Partnership with the OAS and OLACEFS: 

In October 2003, IDI began a cycle of meetings with international 
development organizations to find one or more partners for its e-
learning program. This was an essential ingredient of the e-learning 
program, as neither time nor resources were available to build the 
tools or expertise necessary to create this new stream of work. 

Through this partnership approach, IDI was introduced to the e-
learning program of the Organization of American States (OAS), a 
membership organization for countries in the Americas that aims to 
strengthen cooperation and advance common interests through dialogue 
and action. The OAS has a large program of e-learning courses that are 
delivered through its virtual classroom (VC), an internally developed 
e-learning platform that provides facilitated learning through the 
Educational Portal of the Americas (www.educoea.org) in Spanish, 
English, French, and Portuguese. The VC enables the OAS and its 
partners to deliver vocational education and training to people 
throughout the Americas, and it has a respected certification program 
that is important to both governments and employers. The OAS offered 
to host IDI-funded e-learning courses that met OAS development aims on 
a cost-recovery basis. 

OLACEFS had previously expressed an interest in e-learning as a means 
of training larger numbers of auditors. Following discussions with the 
OLACEFS training administrator (the SAI of Venezuela) and an agreement 
of the OLACEFS General Assembly, IDI and OLACEFS decided to develop an 
e-learning program based on a 2-week performance auditing classroom 
course that had been successfully delivered several times. 

The Course Was a Year in the Making: 

IDI and the OAS signed a cooperation agreement in August 2004. IDI and 
OLACEFS would provide the subject matter expertise, course materials, 
tutors, and funding, and the OAS would deliver a working course that 
met its high pedagogical standards and provide advice on delivering 
the course. 

Using the OAS' experience, IDI worked with the SAI of Venezuela to set 
a project goal of training 60 auditors in approximately 11 weeks 
through a part-time course. Marcelo Cartaya, of the SAI of Venezuela, 
was chosen to be the academic coordinator, the central person for 
developing and delivering the course. In addition to being an IDI 
training specialist and a performance auditing expert, he was also a 
key player in developing the OLACEFS regional training approach. 
During the development phase, Marcelo monitored the redesign and 
redevelopment of course materials created for the classroom, made sure 
that they were appropriate to the virtual classroom, and revised 
strategies suggested by the OAS. 

[Photograph: IDI and OLACEFS staff for INTOSAI's first regional e-
learning workshop] 

"This experience...gave me the opportunity to see how a group of 62 
people can create a virtual community, grow, learn from each other, 
explore and share knowledge, and learn from others' experiences."
— Marcelo Cartaya, academic coordinator, Venezuela. 

The project also benefited from the work of Tania Garcia, also from 
the SAI of Venezuela, who served as the subject matter expert. Tania 
and Marcelo revised the classroom course materials and advised the OAS 
designers on the interactive elements of the pilot course. 

IDI and OLACEFS also had to find and train a group of online tutors. 
While the academic coordinator ensures that the course delivery is 
even and appropriate, online tutors interact with students on a daily 
basis, answer their questions, lead activities, and evaluate 
coursework. Because the online tutors need to have the same
empathetic characteristics as classroom trainers, a decision was made 
to use OLACEFS training specialists who were about to go through a 
Course Design and Instructional Techniques Workshop in Quito, Ecuador. 
The OAS sent a staff member to Quito to train all participants in the 
virtual classroom methodology. 

The OAS, OLACEFS, and IDI decided that seven of these trainers should 
become online tutors. Six would be allocated 10 students each, while 
the seventh would act as a "floating" tutor to cover any absences. In 
most OAS courses, each tutor is allocated up to 30 students; the 
decision to limit each tutor to 10 students in the OLACEFS program 
recognized that the role was being filled on a part-time basis and 
that the duration of the course made it important not to overburden 
the tutors. 

In June 2004 the academic coordinator, subject matter expert, online 
tutors, and IDI program managers met for the first and only time in 
Venezuela to define responsibilities, agree on the timetable, and 
build a network of support. Following this meeting, a 7-week trial of 
the course took place, with the tutors acting as students. The trial 
enabled tutors to define and prepare for their roles and to finalize 
the course materials and exercises. 

"The knowledge I developed about planning, evaluating internal control 
systems, structuring findings, formulating conclusions and 
recommendations, and writing reports is highly applicable in my 
current position." 
— Silvina Negro, participant, Argentina. 

"It was very rewarding to be a part of this pilot project." 
— Minor Sancho, tutor, Costa Rica. 

The Full Pilot Course Was Successfully Concluded in December 2005: 

IDI facilitated communication with the SAIs and OLACEFS for the 
project and used a marketing strategy that recognized the need to 
communicate as much as possible. IDI staff made presentations to the 
OLACEFS General Assembly and the OLACEFS Regional Training Committee. 
IDI staff also wrote to the heads of all participating SAIs about the 
support they were expected to give to participants and tutors. In 
hindsight, we believe that this support was a major factor in making 
the course a success. 

SAIs needed to be aware that their staff (students, tutors, and 
academic coordinator) needed time and an appropriate IT infrastructure 
to complete the course requirements. This was one of the major 
challenges faced by everyone involved since, in an 11-week period, all 
auditors had important work assignments that could not be postponed. 
As Silvina Negro, a participant from Argentina, explained, "I didn't 
reach the ideal balance between the course and my daily work because I 
wasn't in the office but out auditing." 

The same challenges were faced by tutors and the academic coordinator. 
Marcelo Cartaya stated, "It is a big challenge to make sure that SAIs 
set aside enough time for the tutors and participants to work on this 
[project]. It is important that they realize that a virtual course 
requires just as much time as a classroom course." 

Some facts about the course follow: 

* The course was delivered 100 percent online–students and tutors 
never met—from September-December 2005. 

* Sixty-two participants began the course. 

* Fifty-nine participants from 16 countries graduated—a 95-percent 
success rate in an e-learning environment, where it is not unusual to 
see 30-50 percent failure rates. 

* The course was split into five modules, each with participatory 
exercises or discussions. The exercises typically involved e-mailing 
files between the groups, with each student adding his or her own 
perspectives or comments. 

* Students and tutors interacted through organized chatroom sessions 
and an online discussion forum. 

* The final module included an exercise to develop an action plan for 
performance auditing in each student's SAI. 

Nothing can outweigh the contributions of the people involved, from 
the academic coordinator and the 7 tutors to the 59 students who 
graduated from the course. Each spent 11 weeks fitting this virtual 
course into his or her daily work and demonstrated enormous commitment. 

"The important thing is that we can access the virtual classroom at 
any time of the day and any day of the week." 
— Silvina Negro, participant, Argentina. 

The Future Is Bright for E-Learning in OLACEFS: 

Minor Sancho, one of the tutors, summarized the value of the pilot e-
learning program to OLACEFS in these words: 

"These results will, without a doubt, contribute to the implementation 
of an e-learning model in the OLACEFS region." 

"We will be able to train more people with fewer resources." 

"I'm convinced that we will, within a short period of time, see 
cooperation between SAIs to design and develop virtual courses to meet 
local and regional training needs." 

The OLACEFS Regional Training Committee is planning another rollout of 
the e-learning course in performance auditing and is organizing the 
training of additional online tutors. 

IDI and E-Learning—An Addendum: 

The IDI/OLACEFS course was the first e-learning program IDI organized, 
and it followed one particular methodology: the virtual classroom. 
Subsequently, IDI developed programs using other e-learning 
methodologies. In November-December 2005, 20 participants from five 
INTOSAI regions (AFROSAI, ASOSAI, CAROSAL EUROSM, and SPASM) met in 
Kuala Lumpur, Malaysia, for a 2-week participatory workshop in e-
learning methodology and were introduced to two pieces of e-learning 
software. Those participants are using the software to develop their 
own courses. 

In cooperation with the INTOSM Standing Committee on IT Audit 
(ISCITA), IDI is converting part of the ISCITA courseware into a 20-
hour asynchronous e-learning course on the audit of controls. In an 
asynchronous course, the participants and tutors do not interact in 
real time. Typically, the student e-mails questions, and tutors or 
other students respond when they have time. This course will be 
developed using the Internet and CD-ROMs in three INTOSAI regions—
AFROSAI-E, ASOSAI, and CAROSAI. 

Conclusion: 

IDI has gained some important experiences through its initial e-
learning pilot and later projects and is now ready to take further 
action. There is great potential in this training method, and it is 
worth investing more in its further development since, as demonstrated 
by the OLACEFS experience, it allows us to reach a greater number of 
SAI staff and reduces the costs of travel and accommodation, which 
constitute the primary costs for international training events. 

For additional information, contact IDI's e-learning Manager, Ms. 
Archana Shirsat, e-mail: archana. shirsat@di.no. 

Information on all IDI programs can be found in the IDI Update section 
in each issue of this Journal. 

[End of section] 

Ninth SPASM Congress: 

By Susan Fleming, U.S. Government Accountability Office: 

The South Pacific Association of Supreme Audit Institutions (SPASM) 
held its 9th congress in Saipan, Northern Mariana Islands, May 22-26, 
2006. Hosted by the SAI of the Northern Mariana Islands, the congress 
drew delegates from 17 member SAIs as well as observers from other 
SAIs, the Asian Development Bank, and the INTOSAI Secretariat General. 

Opening Ceremony: 

The opening ceremonies on May 22 were led by the Honorable Juan 
Tudela, Mayor of the Commonwealth of the Northern Mariana Islands 
(CNMI); Tamaseu Leni Warren, Controller and Chief Auditor of Samoa; 
and Michael Sablan, CNMI Public Auditor. Each speaker welcomed the 29 
delegates and observers from 17 SPASAI member countries. 

Tamaseu Warren handed over the chairmanship of SPASM to Michael 
Sablan, who remarked that SAIs in the region face similar challenges 
in recruiting, training, and developing new staff. He said he welcomed 
the opportunity of presiding as chairman and looked forward to working 
with everyone. 

[Photograph: Tamaseu Leni Warren, Controller and Chief Auditor of 
Samoa, hands over the chairmanship of SPASAI to Michael Sablan, Public 
Auditor of the Northern Mariana Islands] 

David B. Cohen, the U.S. Department of Interior Deputy Assistant 
Secretary for Insular Affairs, was the guest of honor and keynote 
speaker. In his address, he noted that the islands are focusing on 
promoting private sector economic development and accountability. He
called the attention of SPASM to "the important role auditors play not 
only in promoting accountability, but also in helping to create the 
conditions necessary for private sector economic development." 

Technical Theme Presentations: 

The central theme of the congress--helping Pacific nations learn from 
each other and improve accountability in the region--was addressed in 
three subthemes: ethics and accountability, procurement and contract 
management, and terrorism trends. 

Subtheme I: Ethics and Accountability: 

Michael Sablan, Public Auditor of the CNMI, explained that the CNMI 
Ethics Act, considered among the strictest in the United 
States,[Footnote 1] presents unique enforcement challenges in the 
Northern Mariana Islands given the islands' strong customs and 
relatively small communities. To help educate employees about the do's 
and don'ts for public servants, the Office of the Public Auditor has 
conducted ethics workshops
for more than 4,000 of the 5,000 CNMI public employees. Mr. Sablan's 
presentation included examples that enabled participants to better 
relate restrictions in the act to common situations experienced in the 
workplace and in social settings. 

Subtheme II: Procurement and Contract Management: 

Ralph Capio, an attorney and instructor with the U.S. Department of 
Agriculture's Graduate School Pacific Islands Training Initiative 
(PITI), provided a general overview of procurement and contract 
management processes and outlined factors that influence fraud and 
corruption. He stated that different stages of the processes offer 
different opportunities for fraud and corruption, and the auditor must 
look for the warning signs that correspond to each stage. Mr. Capio 
outlined the PITI course Effectively Managing the Procurement Process, 
which covers such areas as the overall procurement process; 
contracting concepts and principles; contracting best practices; and 
preaward, award, and postaward considerations. 

Subtheme Ill: Terrorism Overview: 

Jim Barry, special agent with the U.S. Federal Bureau of 
Investigation, provided an executive summary of global terrorism 
trends, including terrorist financing. He gave a regional perspective 
on terrorism, explaining measures being taken to detect, deter, and 
disrupt terrorist operations. 

[Photograph: Delegates to 2006 SPASAI Congress in Saipan, Northern 
Mariana Islands] 

Regional Training Programs: 

Kevin Brady, SPASAI's Secretary General, reported that in the past 2 
years, activity within the organization has continued to focus on 
delivering regional training programs in accordance with an agreement 
between the New Zealand Office of the Auditor General and the INTOSAI 
Development Initiative (IDI). In addition, the Office of the Auditor 
General of Fiji secured funding from the European Union for a series 
of three training programs aimed primarily at auditors general. The 
training programs have been broadly consistent with the five goals of 
the SPASAI Regional Institutional Strengthening Plan: 

* helping audit offices meet their training and related needs; 

* providing means for sharing training information, methodology, and 
technology in the region; 

* ensuring the ongoing relevance of training and related activities; 

* securing necessary resources for plan implementation; and; 

* promoting best practices and methodologies and strengthening audit 
offices' organizational structures. 

Mr. Brady noted that future activities are dependent on the Asian 
Development Bank's proposal to establish a regional audit initiative. 

Pacific Regional Audit Initiative: 

Barry Reid and Aolele Su'a Aolele, from the Asian Development Bank 
(ADB), briefed participants on the Pacific Regional Audit Initiative 
(PRAI). Leaders of the Pacific Islands Forum (PIF)[Footnote 2] 
endorsed PRAI for further study and analysis in October 2005 as part 
of the Pacific Plan. Under PIF coordination, the ADB is working with 
regional auditors general to refine the three-phased approach in the 
PRAI design. ADB's goal is to present the final proposal at the 2007 
SPASAI congress. 

Mr. Reid said that the initiative's overarching goal is to "raise 
Pacific public auditing to uniformly high standards across the 
region." An ADB survey of Pacific SAIs identified common themes and 
key issues that PRAI could address. For example, the survey showed 
that the training provided by SPASAI and IDI has contributed 
significantly to the professional and technical development of public 
sector auditors within the Pacific region. However, the ability of 
these offices to attract, retain, and develop qualified staff has been 
limited by their size and remote locations, their inability to compete 
with the private sector on competitive remuneration packages, and 
limited budgets to fund operations. 

SPASM participants unanimously agreed to move forward with the 
proposal with the following conditions: 

* SAI autonomy and independence is important and must be preserved 
under all circumstances. 

* A regional approach is appropriate for addressing common issues, but 
the PRAT must consider specific SAI needs. 

* PRAT should apply to all SPASAI members, not just members of PIF or 
ADB. 

* PRAT should supplement but not replace IDI activities. 

Other Business: 

The Office of the Public Auditor for Guam was accepted as a new member 
of SPASM. Doris Flores Brooks, Guam's Public Auditor, said that she 
welcomed the opportunity to work with the SPASAI community to address 
the challenges that SAIs face in the South Pacific region. 

Kevin Brady, Controller and Auditor General for New Zealand, was 
unanimously appointed to another term as SPASAI's Secretary General. 

The representatives of Papua New Guinea invited participants to the 
10th SPASAI congress, which will be held in their country in 2007. 

Other Activities: 

Throughout the conference, the Public Auditor of the Commonwealth of 
Northern Mariana Islands treated participants with overwhelming 
hospitality and South Pacific warmth. Delegates and invited guests 
attended a dinner reception, hosted by CNMI Governor Benigno Fitial 
and Lt. Governor Timothy Villagomez, at the governor's residence. 
Participants also had the opportunity to visit the American Memorial 
Park, including the visitor center and exhibit hall, which was 
established to honor those who died in the World War II Mariana 
Islands campaign. 

On Thursday, delegates were taken to the northern end of the island, 
where they saw World War II relics as well as the Banzai and Suicide 
Cliffs. That evening, delegates and guests attended a farewell dinner 
reception hosted by the 15th Northern Marianas Commonwealth 
Legislature. 

For additional information, contact Michael Sablan, Public Auditor, 
Commonwealth of the Northern Mariana Islands: 

Fax: ++(670) 322-7812. 
E-mail: mssablan@opacnmi.com. 
Web site: www.opacnmi.com. 

Footnotes: 

[1] The CNMI is a commonwealth in political union with the United 
States. 

[2] The Pacific Islands Forum comprises 16 independent and self-
governing Pacific states. It is the region's premier political and 
economic policy organization, and its leaders meet annually to develop 
collective responses to regional issues. 

[End of section] 

Audit Profile: The Supreme Court of Audit of Spain: 

By Javier Rodriguez Ariza, Supreme Court of Audit of Spain: 

History: 

The origins of the Supreme Court of Audit date from the Middle Ages, 
when people started asking the king how their taxes had been used. 
During the 13th century reign of Alfonso X the Wise, King of Castile 
and Leon, the Code of Las Partidas contained numerous references to 
the control of public financing, and similar controls are said to have 
existed in Aragon at that time. Later, in the 15th century, King John 
II of Castile and Leon organized controls for public financing by 
issuing regulations creating the Casa de Cuentas (House of Accounts) 
in Valladolid and establishing a legal framework to manage public 
monies. 

Present Legal Framework and Independence: 

The Constitution of 1978 established the Supreme Court of Audit of 
Spain in its current form as "the supreme audit entity for the 
accounts and financial transactions of the state and of the public 
sector." The Constitution set the governing principles for the Court 
and made provision for further legislation, passed in 1982, to 
regulate its composition, organization, and duties. The Court of Audit 
Organic Act of 1982 specified the powers the Constitution reserved to 
the Court and ratified the Court's independence as an entity subject 
only to the law. The 1988 Court of Audit (Functioning) Act regulates 
the procedures by which the Court carries out its audit and 
jurisdictional functions. 

The Court proposes its own budget, which it submits to the Cortes 
Generales (Parliament) for approval. 

The Structure of the Court of Audit: 

The Court of Audit has 12 members and a prosecutor, who together 
comprise the Full Session of the Court, the supreme decision-making 
body. Six members are elected by the Congress of Deputies and six by 
the Senate of the Cortes Generales. The law specifies that members are 
to be elected for a 9-year period and can be reappointed. Based on the 
members' recommendation, the king appoints a president of the Court 
from among the members for a 3-year term. All members are independent, 
have the power and status of judges, and share equal standing within 
the Court. 

The Court is divided into two sections--jurisdiction and audit. The 
jurisdiction section has three divisions, and the audit section has 
seven. The members select a president for each section from among 
their number and these, along with the president of the Court, form 
the management board, which guides the Court's general policy. Each 
member--except the presidents of the Court and the jurisdictional 
section--heads a division and is responsible for its work, but the 
Court adopts a collegial approach to decision-making. 

Staff of the Court: 

In addition to its members, the Court has about 800 staff, of which 50 
percent work in audits, 25 percent in jurisdiction, and 25 percent in 
administration. The majority of the Court's staff are lawyers or 
auditors, but there are also specialists in information technology and 
other functional areas. The staff are civil servants subject to 
general civil service pay and conditions of service. Training is an 
ongoing activity conducted on the job as well as through internal and 
external courses. 

The Work of the Court: 

The audit work of the court is divided among the seven audit sections. 
Two sections cover public administrative departments (ministries), 
while the other five sections cover social security, public 
enterprises, public banks, autonomous communities,[Footnote 1] and 
local corporations. Two additional units audit political parties and 
electoral expenses and contracts. The Full Session agrees on the 
annual audit work plan, taking into account the suggestions of the 
Cortes Generales. 

Scope of Work: 

The Court of Audit is the permanent and final external auditor of the 
public sector's economic activity; it also prosecutes accounting 
liability related to persons entrusted with the handling of public 
monies or assets. 

The Court is also responsible for auditing subsidies, credits, and 
other public sector assistance to companies or individuals. Its 
authorizing legislation specifies that its audit work includes 
verifying that the economic and financial activity of the public 
sector conforms to the principles of legality, efficiency, and 
economy. Its work applies to all public income and public spending 
programs. 

Regional audit institutions have been established in 11 of Spain's 17 
autonomous communities; their mandates do not conflict with the 
Court's competences. These regional institutions certify the accounts 
of the communities and present reports to regional parliaments. For 
the remaining 6 communities, the Court of Audit carries out this task. 

The Court's access rights are clearly set out in legislation, and all 
the bodies within its competence must provide the information needed 
to carry out both audit and jurisdictional functions. The Court may 
request on-site access as well as documents it needs to examine. The 
court can submit a request for information to any public body, and 
failure to comply with such a request can lead to Court-imposed 
sanctions. All such cases are reported to the Cortes Generales, which 
may propose disciplinary sanctions. 

Examination of the State Accounts: 

All ministries, public bodies, and public enterprises are required to 
submit their accounts to the Court of Audit. The Court is required to 
verify the state accounts. The results of the verification, which must 
be approved by the Full Session of the Court, are sent to the Cortes 
Generales, with copies to the government. Legislation prescribes four 
objectives for the Court's financial auditing: 

* ensuring that the state accounts are produced on time, 

* guaranteeing that the accounts are consistent with previous accounts 
and are internally consistent, 

* certifying that these accounts provide a true and fair view of the 
annual operations, and, 

* ensuring that the accounts comply with relevant laws. 

The Court also relies on the work of the internal audit function and 
uses statistical sampling techniques, placing a strong emphasis on the 
legality of transactions. When the Court discovers signs of accounting 
liability, the case is sent to the jurisdictional section. The Court's 
audit work leading to the annual report on the state accounts 
highlights risk areas that are subsequently addressed in special 
reports. 

Jurisdictional Functions: 

The jurisdictional functions of the court are limited to accounting 
jurisdiction over accounts that the persons "collecting, auditing, 
administering, safekeeping, managing, or utilizing public goods, 
monies, or assets are obliged to render." 

The jurisdictional section examines cases referred to it from three 
sources--the prosecutor, the affected public entity, or public 
petitions. The court does not examine cases while they are subject to 
criminal prosecution. 

Performance Audit: 

Performance auditing is a relatively new area of work for the Court; 
the majority of its reports still concentrate on issues of financial 
regularity. However, internal control mechanisms within the Spanish 
system focus on efficiency as well as legality. In the future, the 
Court should pay more attention to economy, efficiency, and 
effectiveness. Although the law does not specifically authorize 
examinations of effectiveness, the Court interprets its remit as 
encompassing these issues. 

Reporting: 

The annual audit program includes ordinary audits, audits the court 
has agreed to perform, and audits requested by those legally empowered 
to do so (that is, the Cortes Generales and the legislative assemblies 
of the autonomous communities).The Court's reports are sent to the 
audited body for comment and are submitted to the Cones Generales. 
Along with the annual report, the Court submits the final declaration
on the state general account. The audit reports are published in the 
Official Spanish Gazette. 

For additional information, contact the Supreme Court of Audit of 
Spain: 

Fax: ++34 (91) 446 76 00. 
E-mail: tribunalcta@tcu.es. 
Web site: www.tcu.es. 

Footnote: 

[1] Spain's 50 provinces are grouped into 17 autonomous communities 
that have wide legislative and executive autonomy, with their own 
parliaments and regional governments. 

[End of section] 

Reports in Print: 

Journal readers may be interested in obtaining the International 
Federation of Accountants' (IFAC) 2006 Handbook of International 
Auditing, Assurance, and Ethics Pronouncements. Available in print and 
online, it includes all pronouncements issued through December 31, 
2005, by the International Auditing and Assurance Standards Board 
(IAASB) and the International Ethics Standards Board for Accountants. 
Specifically, it contains the following IAASB pronouncements: 
International Standards on Auditing (ISA), International Standards on 
Review Engagements (ISRE), International Standards on Assurance 
Engagements, and International Standards on Related Services. 

In addition, the handbook contains the revised Code of Ethics for 
Professional Accountants issued by the International Ethics Standards 
Board for Accountants. The updated code establishes a conceptual 
framework for professional accountants to ensure compliance
with the five fundamental principles of professional ethics: 
integrity, objectivity, professional competence and due care, 
confidentiality, and professional behavior. Two electronic versions of 
the 2006 handbook are available: a free PDF downloadable version and 
an online eComPress version. 

For more information or to place an order, contact: 

Mark McGriff, IFAC Publications: 
Telephone: ++(212) 471-8717. 
E-mail: markmcgriff@ifac.org. 
IFAC Online Bookstore: www.ifac.org/Store. 

AuditNet is a new network of resources for professional auditors 
worldwide to share knowledge and best practices. It provides a listing 
of electronic resources that is maintained, updated, and distributed 
monthly via the Internet. 

AuditNet features include (1) Kaplan's AuditNet Resource List (KARL), 
containing more than 1,200 Internet resources for auditors; (2) ASAP, 
a service that allows auditors to share audit programs with peers by 
allowing them to be posted on an FTP site; (3) links to the AuditNet e-
mail directory; (4) FraudNet, which provides sample fraud and ethics 
policies; (5) Internet policies for auditors; and (6) job listings. 

For more information contact: 
AuditNet: 
P.O. Box 452: 
Oakton, Virginia 22124, USA: 
E-mail: editor@auditnet.org: 
Web site: www.auditnet.org. 

Journal readers may be interested in two new CD-ROMs dealing with 
auditing corruption and performance auditing. A Practitioner's Guide 
to Corruption Auditing offers a comprehensive approach to successful 
auditing of corruption through a step-by-step process of planning, 
executing, and reporting. The CD contains useful information for SAIs 
and regulatory organizations about using auditors as resources to help 
address increasing global concerns about corruption. A Practitioner's 
Guide to Performance Auditing contains practical information for 
internal auditors and government audit professionals desiring to 
improve their performance audit skills. 

To obtain a copy of either CD-ROM, contact: 
The Pleier Corporation: 
P.O. Box 3900: 
Mission Viejo, CA 92690-1900, USA: 
Telephone: ++(949)830-1575: 
Web site: www.pleier.com. 

Despite Debt Relief, Poor Nations Back in the Red, a new report by the 
self-auditing arm of the World Bank, paints a grim picture of the 
results of the Highly Indebted Poor Countries (HIPC) initiative, a 
decade-long effort by the bank and the International Monetary Fund 
(IMF) to give the world's poorest nations debt relief. The report says 
that in half the countries that received debt relief under HIPC, debt 
has in fact returned to its previous levels. The study explains that 
changes in exchange rates have increased debt ratios and that new 
borrowing has offset the positive effects of growing exports and 
greater revenues on debt ratios. Six countries that completed the 
program still had a moderate risk of debt distress, remained 
vulnerable to export shocks, and required "highly concessional 
financing and prudent debt management."The study explains that poor 
nations can fall back into debt because they are not able to diversify 
exports or increase revenues to meet strict new borrowing terms.
The international community needs to enhance these countries' exports, 
build needed institutional capacities, and ensure that debt relief is 
supplemented by other aid. 

To obtain a copy of the report, contact: 

World Business Council for Sustainable Development: 
4, Chemin de Conches: 
1231 Conches-Geneva, Switzerland: 
Fax: +41 (22) 839 3131: 
E-mail: info@wbcsd.org: 
Web site: www.wbcsd.org. 

[End of section] 

Inside INTOSAI: 
	
Austrian Government Award Presented to U.S. Comptroller General: 

In June 2006, Dr. Heinz Fischer, Federal President of the Republic of 
Austria, presented the Grand Gold Decoration on the Sash, one of his 
government's highest awards, to David M. Walker, Comptroller General 
of the United States, at a ceremony held in the President's office. 
The award recognized Mr. Walker's leadership in developing and 
implementing the INTOSAI strategic plan. Also attending the ceremony 
were Josef Moser, head of the Austrian SAI and Secretary General of 
INTOSAI; Arpad Kovacs, current chair of the INTOSAI Governing Board 
and Auditor General of Hungary's SAI; and Mrs. Walker. The reception 
that followed was attended by delegates to the INTOSAI Tsunami 
Conference hosted by the Austrian SAI. 

[Photograph: Dr. Moser, Secretary General of INTOSAI; Mr. Walker, 
Comptroller General of the United States; and Dr. Fischer, President 
of Austria] 

For additional information, contact the Austrian Court of Audit: 

Fax: ++43 (1) 712 94 25. 
E-mail: intosai@rechnungshofgv.at. 
Web site: www.rechnungshofgv.at. 

Financial Audit Guidelines Subcommittee: 

Memorandum of Understanding with IAASB Approved: 

The Project Secretariat, in close cooperation with technical staff at 
the International Auditing and Assurance Standards Board (IAASB), 
reviewed its memorandum of understanding (MOU) with the IAASB during 
the first months of 2006. The document was approved by the Financial 
Audit Guidelines Subcommittee (FAS) at its meeting in Namibia in March 
2006 and by the INTOSAI Professional Standards Steering Committee in 
May. The IAASB Board also unanimously approved the MOU at its meeting 
in New York in May. 

Subcommittee Membership: 

The FAS chair still aims to keep the number of subcommittee members at 
about 10 to ensure an efficient level of communication and the active 
involvement required to run the subcommittee's work smoothly and 
oversee the development of the International Standards on Auditing 
(ISA) and the production of practice notes. Currently, the FAS chair 
is offering three SAIs membership in the FAS. If all accept, the group 
will increase to 11 members. 

It is encouraging that so many SAIs recognize the importance of this 
work and are willing to offer time, expertise, and active 
participation in developing guidelines for financial audit. FAS 
greatly appreciates this support. 

Reference Panel Meetings in Stockholm: 

The Project Secretariat arranges regular Reference Panel meetings in 
Stockholm. Two meetings will take place in September 2006—the first on 
September 11-12 and the second on September 14-15. The first meeting 
will focus on subjects of interest to experts and back-office experts 
already active on IAASB task forces and practice note task forces as 
well as members of the focus group and members of the Court of
Accounts expert group. The groups will be given substantial time to 
discuss in person their specific issues. The second meeting will 
address experts and back-office experts that have not yet been 
appointed to a specific task. Members of IAASB's technical staff and 
INTOSAI experts will participate in both meetings. About 40 experts 
have been invited to this year's meetings. 

IAASB Task Forces at Work: 

The International Federation of Accountants (IFAC) Web site 
(www.ifac.org) provides updated information on the IAASB task forces, 
exposure drafts of ISAs, and other information. 

For a complete listing of IAASB task forces where INTOSAI experts are 
involved, see the FAS Web site. 

The subcommittee is also charged with developing practice notes for 
each ISA to provide additional guidance for auditors in the public 
sector. Practice note task forces have been set up to deal with this 
task. 

Each of these task forces is responsible for developing practice notes 
for two to four ISAs. The first two task forces were set up in January 
2006 and started their work in February. For a listing of the practice 
note task forces, see the FAS Web site. 

Two additional practice note task forces will be formed during 2006 to 
develop practice notes for six other ISAs. 

Subcommittee Meetings: 

In March 2006, the SAI of Namibia hosted a subcommittee meeting in 
Namibia. The participants discussed the draft framework of the 
Professional Standards Committee, the revision of the MOU between the 
former Auditing Standards Committee and IAASB, the scope of financial 
audit guidelines, membership issues, and expert work on different task 
forces. 

On September 25-26, the IAASB will host the next subcommittee meeting 
in New York. 

Practice Notes: 

Fifteen SAIs submitted comments on the two first practice notes (to 
ISAs 230 and 240) by the March 31, 2006, due date. The comments have 
been processed by the experts and finalized by the Project 
Secretariat. After the subcommittee approves them, they will be sent 
to the Governing Board for approval at their next meeting and posted 
on the FAS Web site. The practice notes will be translated into the 
official INTOSAI languages before they are presented to the next 
INTOSAI Congress. 

The subcommittee will continue to post newly developed guidance on the 
Web site and encourages all SAIs to comment on the exposure drafts. 

Translation of the Financial Audit Guidelines: 

The issue of translating the financial audit guidelines has been 
discussed by the subcommittee as well as the Steering Committee of the 
Professional Standards Committee. On the basis of these discussions, 
FAS has decided to take the following actions: 

* Practice notes will be exposed in English and translated into the 
INTOSAI official languages after they are approved by the INTOSAI 
Governing Board. 

* ISAs will not be translated into the INTOSAI official languages. The 
ISAs will be developed in English, and any organization in need of 
translation must comply with the IFAC translation policy. 

* The FAS will develop a policy for SAIs that need to translate the 
practice notes and other guidance issued as part of the financial 
audit guidelines into languages other than the official INTOSAI 
languages. 

ISAs will be available in English and will not be translated because 
the task is too extensive for any one INTOSAI subcommittee or 
committee to undertake. Any SAI needing a translation will have to 
make its own arrangements for the translation. 

The Project Secretariat will assist in identifying acceptable external 
translations of the ISAs. 

Funding: 

Finding sources of funding is one of the Project Secretariat's major 
tasks. Currently, the secretariat is happy to announce that the World 
Bank, the Asian Development Bank, and the IAASB have provided 
significant funding for the subcommittee's projects: 

FAS Web site: 

The FAS Web site was updated after the March 2006 subcommittee meeting 
in Namibia. Current versions of the terms of reference and other 
steering documents that were reapproved after changes were made by the 
Project Secretariat are available on the Web site. 

It is our aim to keep the information up to date and to offer all SAIs 
and subcommittee members a reliable source of information. 

For additional information, contact the FAS Project Secretariat: 

E-mail: projectsecretariat@riksrevisionen.se. 
Web site: http://psc.rigsrevisionen.dk/fas. 

Committee on IT Audit: 

Fifteenth Meeting Held in Brazil: 

On May 16, 2006, Minister Adylson Motta, the President of the 
Brazilian Court of Audit, welcomed 42 delegates to Brasilia, the 
capital of Brazil, for the 15th meeting of the INTOSAI Standing 
Committee on IT Audit. The delegates represented the SAIs of India, 
Antigua and Barbuda, Austria, Bhutan, Canada, China, France, Japan, 
Kuwait, the Netherlands, Norway, Oman, Pakistan, Peru, Poland, Qatar, 
Russia, Sweden, the United Kingdom, and the United States, as well as 
the INTOSAI Development Initiative (IDI). 

Vijayendra N. Kaul, chairman of the committee and Comptroller and 
Auditor General of India, chaired the working sessions, during which 
updates on initiatives from previous meetings were discussed. These 
included the intoIT Journal, the committee Web site, measures to 
counter fraud in an IT environment, cross-organizational country 
systems, INTOSAI IT audit courseware, and a reference list of materials
on performance audit. The committee members discussed their ongoing 
project on auditing e-government, possible projects to be taken up in 
the future, cooperation with IDI, and the 5th performance audit 
seminar. 

Several committee members made presentations during the meeting. Their 
themes were audit information management systems (Bhutan), 
characteristics of IT-related fraud (China), IT activities in the 
State Audit Bureau (Qatar), developing informational support for 
nonfinancial audits (Russia), and auditing the IT system of the French 
Ministry of Justice (France). During discussions on the presentation 
of the Chinese SAI, the Brazilian SAI reported on combating fraud. The 
Netherlands SAI apprised the committee of developments in the EUROSAI 
IT Working Group. 

The committee decided to undertake a series of new projects on IT 
governance, e-government risks, IT tools for electronic audit papers, 
use of the SAP software package in public administration, and auditing 
application/software development. The committee also decided that the 
16th IT Audit Committee meeting will be in Oman in March 2007 and that 
the 17th meeting will be in Japan in 2008. The 5th Performance 
Auditing Seminar, on IT governance, will be held before the 16th 
meeting and will be coordinated by the SAI of the United States. 

[Photograph: Delegates to the May 2006 IT Audit Committee meeting in 
Brasilia] 

Work in Progress: 

The committee is presently working on the following projects. 

IT Audit Course: One of the committee's most important functions is 
designing standardized courses to train auditors in IT audit. The 
committee has developed an IT audit course containing 10 modules: IT 
awareness, business continuity planning, IT method awareness, IT 
controls, computer-assisted audit techniques, data downloading and 
conversion, audit of developing IT systems, IT security, value-for-
money audit, and IT audit organization and management. These modules 
are being updated by the SAIs of India and Oman, and the committee is 
working with IDI to develop a 20-hour e-learning course on auditing IT 
controls (see the e-learning article in this issue). 

Auditing E-Government: A task force headed by the SAI of Norway, with 
members from the SAIs of Canada, India, Sweden, the United Kingdom, 
and the United States, has issued a document on life-cycle risks of e-
government projects. In addition, the committee Web site contains a 
database of reference material on the work of SAIs and others in the e-
government area. The next stage in the project is to analyze audit 
methods and develop best practice guidance. This will be based on an 
analysis of the material SAIs contributed to the database. SAIs have 
been asked to populate and make use the database so that their 
experience can be shared and used to develop audit methods. 

Countering fraud in the IT environment: The SAI of the Netherlands is 
the team leader for this project and members include the SAIs of China 
and Pakistan. The project framework will list and explain (1) how the 
auditee may utilize IT to build controls for the prevention and 
detection of fraud, (2) the minimum set of measures the auditee should 
have in place to safeguard its IT infrastructure and fraud-sensitive 
information systems, (3) how SAIs can audit items (1) and (2), and (4) 
how SAIs can use automated tools to analyze financial and logging data 
to search for possible fraud cases. 

For additional information, contact the INTOSAI Standing Committee on 
IT Audit: 

E-mail: cag@cag.gov.in. 
Web site: www.intosaiitaudit.org. 

Task Force on the Fight against International Money Laundering: 

The Accounts Chamber of the Russian Federation organized an 
international symposium to discuss developments in the work of the 
INTOSAI Task Force on the Fight against International Money 
Laundering. The symposium focused on the role of SAIs in developing 
and implementing national policies and procedures to combat 
international money laundering, as well as the contributions SAIs 
themselves can make. Participants focused on two subthemes: 

[Photograph: Delegates to the meeting of the Task Force on the Fight 
against International Money Laundering] 

* international programs and the role of national organizations in 
implementation and, 

* the interaction of SAIs with other concerned national-level 
organizations. 

SAIs from 18 countries, including members of the INTOSAI task force 
and other countries from all continents, and representatives of major 
international and national organizations, attended the symposium.
Welcome addresses to the participants were delivered by: 

* Dr. Sergey Stepashin, Chairman of the Accounts Chamber of the 
Russian Federation; 

* Mr. Ubaldo Nieto de Alba, President of the Spanish Court of Audit 
and Secretary General of EUROSAI; 

* Dr. Genaro Matute Mejia, Comptroller General of Peru and chairman of 
the task force; and; 

* Mr. Dmitriy Ryzhkov, Deputy Chief of Staff of the Government of the 
Russian Federation. 

The task force secretariat, together with the Russian Accounts 
Chamber, will summarize the ideas and proposals presented at the 
symposium, which will be discussed during the next meeting of the task 
force in Lesotho later in 2006. These recommendations and some other 
materials from the symposium will be placed on the task force's Web 
site. 

For additional information, contact the task force secretariat: 

Fax: ++51 (1) 330 32 80, 330 05 12. 
E-mail: itf_faim@contraloria.gob.pe.
Web site: www.contraloria.gob.pe/task_force. 

[End of section] 

IDI Update: 
IDI Update keeps you informed of developments in the work and programs 
of the INTOSAI Development Initiative. To find out more about IDI and 
to keep up to date between editions of the Journal, look at the IDI 
website: www.idi.no. 

IDI's New Strategic Plan for 2007-2012: 

The IDI Governing Board approved the new IDI strategic plan for 2007-
2012 at its yearly board meeting in Oslo in March 2006. More 
information on the new strategic plan is available online at 
www.idi.no/english/publications.asp. 

IDI/ARABOSAI Capacity Building Program in IT Auditing: 

After completing a 3-week IT Audit and Instructional Techniques 
Workshop in Oman in December 2005, new ARABOSAI IT audit champions 
took part in 3-week pilot audits carried out in some of the region's 
SAIs. The pilot audits gave them the opportunity to put their new 
skills into practice and, by developing new case studies, to improve 
the course material for the forthcoming workshop in IT audit. The first
pilot audit was held in Qatar in March 2006, the second in Oman in 
April-May 2006, and the third in the United Arab Emirates in May-June 
2006. 

IDI/ISCITA Cooperation Project 2006: 

A 1-week focus group meeting held in New Delhi, India, in March 2006 
initiated the cooperation project between IDI and the INTOSAI Standing 
Committee on IT Audit (ISCITA). The project's aim is to develop and 
deploy a 20-hour e-learning course based on selected portions of the 
ISCITA courseware on IT auditing. 

The meeting brought a group of IT auditing experts from AFROSAI-E, 
ASOSAI, CAROSAI, and the SAI of the United States together with the e-
course developers to begin the project and finalize its 
specifications. The prototype developed was presented for feedback at 
the ISCITA meeting in Brazil in May 2006. Subsequent construction will 
continue, with a test version to be delivered within about 4 months to 
selected SAIs in English-speaking regions. 

IDI/AFROSAI-E Strategic Planning Program: 

In cooperation with AFROSAI-E, IDI will conduct a strategic planning 
program for the SAIs of Eritrea, Gambia, Kenya, Mauritius, and 
Swaziland to build their capacities in this area. In April 2006, a 
planning meeting for the stakeholders was held at the IDI Secretariat 
in Norway; a design meeting is being held in Mauritius in July 2006. 

IDI/CREFIAF Regional Workshop on Performance Auditing: 

The second phase of the Long Term Regional Training Programme in 
CREFIAF (African Sub-Saharan Francophone SAIs) came to its planned 
conclusion with the delivery of a Regional Workshop on Performance 
Auditing to 30 participants in Cameroon in April 2006. Five new 
training specialists served as instructors for the workshop, and the 
region now has a pool of 26 new IDI training specialists. 

IDI/ASOSAI Cooperation on Capacity Building: 

As part of its ongoing cooperation with ASOSAI, IDI implemented a 2-
week project in Bhutan in May 2006 to design and develop a new course 
on the Audit of Procurement. ASOSAI will be delivering the course 
during the second half of 2006. The six instructors involved are all 
IDI-certified training specialists from ASOSAI. 

IDI/EUROSAI Public Debt Audit Program: 

A 2-week Russian-language workshop on Public Debt Audit, developed in 
cooperation with EUROSAI and the INTOSAI Public Debt Committee, was 
held in Astana, Kazakhstan, in May 2006. Thirty participants from 11 
countries of the Commonwealth of Independent States and Mongolia 
attended the course. 

IDI's Liaison with the INTOSAI Community: 

IDI representatives have attended and reported at the following events 
in recent months: the OLACEFS Regional Training Committee meeting 
(Costa Rica), the INTOSAI Public Debt Committee meeting (Argentina), 
the CREFIAF Congress (Gabon), the inaugural meeting of the INTOSAI 
Capacity Building Committee (United Kingdom), the INTOSAI Professional 
Standards Steering Committee meeting (USA), the AFROSAI-E Governing 
Board Meeting and Strategic Planning Workshop (Tanzania), and the 
INTOSAI Standing Committee on IT Audit (Brazil). 

Contacting IDI: 

To discuss any of the issues raised in this edition of the IDI Update, 
contact: IDI: 

Telephone: ++47 21 54 08 10. 
E-mail: idi@idi.no
Web site: www.idi.no. 

[End of section] 

INTOSAI 2006 Events: 	
	
July 29-August 9: 
IDI/ASOSAI Workshop on Performance Audit of Revenue Agency, Mongolia. 

July 8-26: 
IDI/ARABOSAI IT Pilot, Audit, Amman, Jordan. 

August 21-25: 
IDI/AFROSAI-E Strategic Planning Workshop, Nairobi, Kenya. 

September 4-5: 
Professional Standards Committee meeting, Cameroon. 

September 6-9: 
Working Group on Environment Auditing Steering Committee, Vancouver, 
British Columbia, Canada. 

September 11: 
31st EUROSAI Governing Board meeting, Reykjavik, Iceland. 

September 11-12: 
FAS Reference Panel Meeting (for task force experts), Stockholm, 
Sweden. 

September 11-15: 
ASOSAI Assembly, 11-15 Shanghai, China. 

September 14-15: 
FAS Reference Panel Meeting (for newly nominated experts), Stockholm, 
Sweden. 

September 15-25: 
FAS meeting, New York, United States. 

October 16-19: 
CAROSAI Congress, Nassau, Bahamas. 

November 1-4: 
55th INTOSAI Governing Board, Mexico City, Mexico. 

November 27-29: 
IV Meeting of the EUROSAI Working Group on IT, Bratislava, Slovak 
Republic. 
	
Editor's Note: This calendar is published in support of INTOSAI's 
communications strategy and as a way of helping INTOSAI members plan 
and coordinate schedules. Included in this regular Journal feature 
will be INTOSAI-wide events and regionwide events such as congresses, 
general assemblies, and board meetings. Because of limited space, the 
many training courses and other professional meetings offered by the 
regions cannot be included. For additional information, contact the 
Secretary General of each regional working group. 

[End of July 2006 Journal]