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INTOSAI	International Journal Of Government Auditing: 
					
October 2008: 
Vol. 35, No. 4: 

Board of Editors: 
Josef Moser, President, Rechnungshof, Austria: 
Sheila Fraser, Auditor General, Canada: 
Faiza Kefi, First President, Cour des Comptes, Tunisia: 
Gene Dodaro, Acting 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 Editor: Linda J. Sellevaag (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.): 
Paul Miller (U.S.A.): 

Members of the Governing Board of INTOSAI: 
Juan M. Portal-Martinez, Auditor General Auditoria Superior de la 
Federation, Mexico, Chairman: 
Terence Nombembe, Auditor-General Office of the Auditor-General South 
Africa, First Vice-Chairman: 
Osama Jaffer Facieeh, President, General Auditing Bureau, Saudi 
Arabia, Second Vice-Chairman: 
Josef Moser, President; Rechnungshof; Austria, Secretary General: 
Liu Jiayi, Auditor General National Audit Office, People's Republic of 
China: 
Paul R.S. Allsworth, Director of Audit, Cook Islands Audit Office: 
Ziriyo Bogui, President, Chambre des Comptes, Cote d'Ivoire: 
Pal Csapodi, Acting President; Allami Sztimvevoszik, Hungary: 
Vinod Rai, Comptroller and Auditor General, India: 
Hwang Sik Kim, Chairman, Board of Audit and Inspection, Korea: 
Ali Al-Hesnawi, Auditor General, General People's Committee of 
Institution for Auditing and Technical Supervision, Libyan Arab 
Jamahiriya: 
Luis A. Montenegro Espinoza, President, Consejo Superior de la 
Contraloria General Nicaragua: 
Jurgen Kosmo, Auditor General, Riksrevisjonen, Norway: 
Sergey Vadimovich Stepashin, Chairman, Accounts Chamber, Russian 
Federation: 
Wesley Galloway, Acting Director of Audit, National Audit Office, St. 
Kitts and Nevis: 
Amyas Morse, Comptroller and Auditor, General National Audit Office, 
United Kingdom: 
Gene Dodaro, Acting Comptroller General, Government Accountability 
Office, United States of America: 
Clodosbaldo Russian Uzcategui, 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: 

Editorial: 

News in Brief: 

Project Management in the Public Sector: 

Audit Profile: Singapore: 

Commonwealth Auditors General Conference Report: 

Spotlight on the Strategic Plan: 

Inside INTOSAI: 

IDI Update: 

INTOSAI Calendar: 

[End of section] 

Editorial: 

Writing for the Journal: 

In the inaugural issue of this Journal in January 1974, the editorial 
was entitled "International Communication" and noted that the Journals 
establishment was "inspired by the need for a greater understanding, 
on a world-wide basis, of the government auditor's common problems." 
Today, 34 years later, communication remains at the heart of INTOSAI's 
motto, "Mutual Experience Benefits All." The open and honest exchange 
of experience and the free flow of information among INTOSAI members 
are essential to continuous improvement for all of us. The Journal is 
proud to play a central role in this effort. 

In this spirit, INTOSAI members and others in the international 
accountability community are encouraged and invited to write for the 
Journal. This editorial presents some ideas on how to do this. We 
believe that this is a particularly timely topic as INTOSAI's task 
force on communications prepares to meet in Vienna in November 2008. 

Contributions to the Journal can take many forms: 

Editorials: In an editorial, heads of supreme audit institutions (SAI) 
and leaders of other accountability organizations and partner 
institutions have the opportunity to express views and thoughts on 
issues and challenges that are of particular concern to our community. 
Often provocative, editorials provide a "view from the top" and have 
been invaluable in framing discussions and advancing INTOSAI's goals. 
Over the years, editorials have been written not only by INTOSAI 
leaders but also by the Secretary General of the United Nations, the 
President of the World Bank, and the President of the Institute of 
Internal Auditors, among others. Editorials are generally about 1,000 
words long. 

Articles: In keeping with the Journals use as a teaching tool for 
audit practitioners, articles most likely to be accepted are those 
that deal with practical issues facing government auditors. For 
example, we welcome case studies that describe knowledge learned from 
actual work experience, including audit techniques and methodology. 
Articles on best practices and lessons learned are always useful to 
our readers, but theoretical or academic articles are generally not 
considered for publication. 

Articles are generally 1,500-2,000 words long and can include 
illustrative graphs and charts as appropriate. Prospective authors are 
asked to consider the words of Cicero—the Roman statesman, 
philosopher, orator, and writer—who said, "When you wish
to instruct, be brief, so that men's minds take in quickly what you 
say, learn its lesson, and retain it faithfully. Every word that is 
unnecessary only pours over the side of a brimming mind." 

News in Brief: News items on numerous topics are appropriate, 
including but not limited to the following: 

* new auditors general (biographical information and photographs), 

* annual audit reports, 

* special SAI reports and publications, 

* new audit and evaluation methodologies, 

* new audit legislation or developments in an SAT's mandate, and, 

* training and professional development programs conducted by SAIs. 

News in Brief items are generally three to four paragraphs long. 

Inside INTOSAI: Here readers find news about the work of INTOSAI's 
committees, working groups, and task forces, as well as reports from 
our seven regional working groups, the General Secretariat, and other 
special programs, such as the biennial United Nations/INTOSAI seminar. 
In advance of each issue, Journal staff solicit items for this section 
directly from the heads of these groups. Like News in Brief items, 
Inside INTOSAI reports are generally three to four paragraphs long. In 
all cases, we publish contact information so readers can learn more 
about INTOSAI's work and programs. 

Other regular features: Staff responsible for the INTOSAI strategic 
plan and the INTOSAI Development Initiative (IDI) prepare regular 
updates on their work. Each issue of the Journal also features a 
calendar of regional and INTOSAI-wide events, and we invite organizers 
of such events to send us the relevant dates and locations. 

The Journal welcomes the opportunity to be an active contributor to 
INTOSAI's communications strategy and to work with our partners to 
help achieve its goals. The strategy identifies the following five 
objectives: 

* raise the knowledge of INTOSAI members to a uniform level by using 
existing means of communication, 

* support INTOSAI members and promote convergence, 

* convey the concerns of government audit to decision-makers and 
opinion leaders, 

* strengthen the standing and reputation of SAIs and INTOSAI, and, 

* disseminate the benefits of SAIs and INTOSAI among partner 
organizations. 

When the Journal began in 1974, it was the principal means of 
communication for our community. Today, we have many communication 
vehicles—including journals and newsletters published by regional 
working groups and committees, INTOSAI circulars, and the Internet, as 
well as informal and personal communication networks that bring us 
together. The Journal is committed to working collaboratively through 
our print editions and, increasingly, through our Web site (which we 
plan to make more robust and dynamic) as part of INTOSAI's 
communications strategy. All of us at the Journal look forward to 
hearing from you and working with you to advance our profession. 

Contact the Journal: 

INTOSAI Journal: 
441 G Street, N.W., Room 7814: 
Washington, DC 20548 USA: 
E-mail: intosaijournal@gao.gov: 
Tel: 1-202-512-4707: 
Fax: 1-202-512-4021: 
Web site: www.intosaijournal.org: 

[End of section] 

News in Brief: 

Bangladesh: 

New Comptroller and Auditor General Named: 

Ahmed Ataul Hakeem has been named the 10th Comptroller and Auditor 
General of Bangladesh. Prior to his appointment, he served as the 
Controller of General Defense Finance in the Ministry of Defense. 

[Photograph: Ahmed Ataul Hakeem] 

Mr. Hakeem joined the Bangladesh Civil Service Audit and Accounts
cadre in March 1979. During his distinguished career in the Civil 
Service, he worked both in accounts offices and audit directorates of 
the Audit and Accounts Department. He also served as the first ever 
Chief Accounts Officer of the Government of Bangladesh. 

Mr. Hakeem worked as the Director/Deputy Secretary in the budget wing 
of the Finance Division of the Ministry of Finance from 1991-1997. He 
became the Director General of the Audit Department in 1997 and was 
head of the Financial Management Academy for 5 years. He also served 
as Director General of the Civil Audit Directorate. From 2004-2005, he 
was posted as the Deputy Comptroller and Auditor General (Senior) at 
the Office of the Comptroller and Auditor General of Bangladesh. 

Mr. Hakeem has a bachelors and a masters degree in economics from the 
University of Dhaka in Bangladesh and a masters degree in development 
finance from Birmingham University in the United Kingdom. He also has 
a certificate in public sector budgeting from Harvard University in 
the United States and a post-graduate diploma in management from the 
Bangladesh Open University. He is a fellow of the Institute of Cost 
and Management Accountants of Bangladesh. 

Medium-Term Budget Framework System Auditing: 

In 2005, the government of Bangladesh introduced the medium-term 
budget framework (MTBF), whose main features are a medium-term outlook
on budget planning, an explicit link between policy priorities and 
resource allocations, and an emphasis on the efficient use of limited 
public resources. Under the MTBF system, the principal accounting 
officer, who is also chief executive of the ministry/department, is 
given increased authority and responsibility over the budget. During 
the initial phase, a few ministries and divisions have started 
developing their budgets using MTBF procedures. 

The SAI of Bangladesh recently started to audit the ministry accounts 
maintained since the introduction of the MTBF system. Their audit 
approach is different from the one used for financial audits of 
ministries with conventional budgets. A system-based audit of the 
financial statements, compliance with rules and regulations, and 
internal control system of the auditee analyzes whether the 
ministry/department is making expenditures in accordance with targets 
fixed under the MTBF. 

For additional information, contact the Office of the Comptroller and 
Auditor General: 

E-mail: international@cagbd.org. 
Web site: www.cagbd.org. 

Canada: 

Employee Survey Results Show Satisfied and Engaged Employees: 

The Office of the Auditor General of Canada (OAG) seeks to provide a 
work environment where employees are satisfied and engaged. Such an 
environment reflects the values that define how the OAG conducts its 
work: respect, trust and integrity, and leading by example. 

The OAG has set the target of maintaining a minimum level of 80 
percent employee satisfaction. To evaluate its performance in 
achieving this objective, the OAG surveys its employees every 2 years. 
A record 93 percent of employees responded to the most recent survey 
in May 2008—a response rate that eclipses the 65 percent average among 
organizations that conduct employee surveys. 

Most employees (92 percent) said they feel proud to work for the OAG 
and consider it to be well run, with clarity of direction and strong 
support for its vision and values. And 88 percent believe the OAG is 
one of the best organizations to work for. 

Even with these positive results, Auditor General Sheila Fraser 
believes there is always room for improvement. A volunteer employee 
committee is reviewing the survey results to identify actions to 
maintain and increase employee satisfaction. It will present its 
recommendations to the OAG's Executive Committee and to all staff in 
the fall of 2008. 

For additional information, contact the OAG: 

E-mail: communications@oag-bvggc.ca. 
Web site: www.oag-bvg.gc.ca. 

Czech Republic: 

Supreme Audit Office Celebrates Its 15th Anniversary: 

The Supreme Audit Office (SAO) of the Czech Republic is celebrating 
its 15th anniversary in 2008. Fifteen years constitute only a brief 
segment in the history of the nation's external audit function, which 
dates back 200 years and has undergone many changes during that time. 
On the occasion of the SAO's anniversary, Frantisek Dohnal, President 
of the SAO, congratulated and expressed his thanks to all those who 
had served the office in the past. 

[Photograph: Frantisek Dohnal, President of the Czech SAI] 

According to the Constitution of the Czech Republic, the executive 
branch cannot intervene in the planning and performing of audits. 
Unfortunately, the democratic development of auditing practices in the 
Czech Republic was interrupted from the 1950s through 1993. The SAI 
was an independent entity until the 1950s, when the communist regime 
established the Ministry of State Control. The ministry came under the 
control of the government, which dictated what the ministry should 
and, at times, should not focus on when performing audits. The SAO did 
not begin to seek new ways to develop a standard set of operating 
procedures and change its policies until the 1990s. 

At present, the SAO has the authority to identify and report on any 
problems it identifies. The Parliament of the Czech Republic is the 
SAO's partner since it delegates tasks to the executive branch and 
monitors the performance of those tasks. In addition to performing 
audits, the SAO promotes the adoption of best practices by all those 
working in the auditing arena. 

The building the SAO inherited from the ex-Ministry of State Control 
did not satisfy its structural or space requirements. At the beginning 
of 2007, the SAO moved to new rented offices in Prague in a modern 
administration center that provides enough space for all its employees 
and representatives and can accommodate the future expansion of the 
SAO's activities. 

For additional information, contact the SAO: 

E-mail: efrantisek.dohnal@nku.cz. 
Web site: http://www.nku.cz. 

Iceland: 

New Auditor General Appointed: 

The President of the Icelandic Parliament has appointed Sveinn Arason 
as the new Auditor General of the Icelandic National Audit Office, 
effective July 1, 2008. In accordance with the National Audit
Act, the appointment is for a term of 6 consecutive years. Mr. Arason 
replaces Sigurdur Thordarson, who retired at the end of June after 16 
years in office. 

[Photograph: Sveinn Arason] 

Mr. Arason graduated from the University of Iceland in 1972 and became 
a certified public accountant in 1976. Prior to his appointment, he 
had served as head of the financial audit division of the Icelandic 
National Audit Office since 1972. Mr. Arason has been a member of the 
Board of Auditors of the European Free Trade Association since 1992. 

For additional information, contact the National Audit Office: 

E-mail: postur@fikisend.is. 
Web site: www.rikisend.is. 

Jamaica: 
New Auditor General Appointed: 

In April 2008, Mrs. Pamela D.M. Monroe Ellis was appointed as the 
Auditor General of Jamaica. Before her appointment, Mrs. Monroe Ellis 
had served as the Divisional Director of Audits of the Auditor 
General's Department since 2002. From 1997 to 2002, she held a variety 
of appointments within the organization, including Senior Director of 
Audits. 

[Photograph: Pamela D.M. Monroe Ellis] 

Mrs. Monroe Ellis is an active member of the Institute of Chartered 
Accountants of Jamaica (ICAJ) and serves on several committees, 
including most recently the Integrity Commission of Jamaica and the 
Commission for the Prevention of Corruption. She is also a recipient 
of the ICAJ award for outstanding performance at the final level of 
the Association of Certified Chartered Accountant (ACCA) examinations. 

Mrs. Monroe Ellis is certified as a chartered accountant, information 
systems auditor, and internal auditor. She also serves as a fellow at 
both the ACCA and ICAJ. 

For additional information, contact the Auditor General's Department: 

E-mail: audgenl@cwjamaica.com. 
Fax: +1 876 968-4690. 

Korea: 

New Chairman of the Board of Audit and Inspection: 

In September 2008, Hwang Sik Kim was appointed to be the new Chairman 
of the Board of Audit and Inspection (BAI) of the Republic of Korea. 
In this capacity, he also serves as a member of the Governing Board of 
INTOSAI. He succeeds Yunchurl Jeon, who retired from office in May 
2008. 

[Photograph: Hwang Sik Kim] 

Mr. Kim has had a lengthy and distinguished career as a judge and 
brings to his new position a wealth of experience and knowledge in law. 

Earlier in his career, he served as a judge in various courts in Korea,
including positions as a High Court Senior Judge and Senior Judge in 
District Courts. Before his appointment as Chairman of the BAI, he had 
served as a Supreme Court Justice since 2005. 

During his studies in Germany in the early 1970s, Mr. Kim researched 
civil law, focusing on real estate registration law. Later, he 
contributed to the development of real estate registration law in 
Korea. As a leading advocate for an innovative trial system, he played 
a major role in adopting Korea's concentrated trial system. He also 
served as a renowned researcher of the Supreme Court and is a prolific
author of books and papers on civil law and civil proceedings. 

In his inauguration speech, Chairman Kim affirmed the importance of 
the rule of law for both the development of the nation and the quality 
of life. 

Mr. Kim obtained an LL.B. from the College of Law of Seoul National 
University in 1971. 

For additional information, contact the Board of Audit and Inspection: 

E-mail: koreasai@koreasai.go.kr. 
Web site: www.bai.go.kr. 

Latvia: 

Anniversary of the State Audit Office: 

The State Audit Office of the Republic of Latvia (SAO) celebrated its 
85th anniversary on August 29, 2008, with a ceremony attended by the 
President of Latvia, the Speaker of the Parliament, the Prosecutor 
General, and other guests. During the ceremony, Auditor General Inguna 
Sudraba evaluated the accomplishments of the SAO and identified its 
main goals for the future. 

The SAO was established in 1923, and since then it has experienced 
major changes and developments. Between World War II and the 
reestablishment of the independent Republic of Latvia, there was no 
independent supreme audit institution in Latvia, although there were 
state audit institutions with different names, tasks, and aims. 

The current SAO was founded as the independent collegial supreme audit 
institution of the Republic of Latvia in August 1992. As a key element 
in the state's financial control system, the SAO serves the public 
interest by providing independent assurance on the effective and 
efficient utilization of central and local government resources. 

For additional information, contact the SAO: 

E-mail: Irvk@lryk.gov.lv. 
Web site: www.lnik.gov.lv. 

Malaysia: 

Design and Development of a Performance Audit Course: 

In June 2008, the Malaysian National Audit Academy held a 7-day 
workshop to design and develop a performance audit course for 
trainers/auditors from the Audit Board of the Republic of Indonesia. 
The workshop was one of the activities planned under the cooperation 
agreement signed last year between the Malaysian and Indonesian SAIs. 

Seven trainers/auditors and four observers from the Indonesian SAI and 
five trainers from the Malaysian SAI participated in the workshop, 
which was conducted by Roslan bin Abu Bakar, an experienced trainer 
who is also an ASOSAI training specialist. 

The workshop's objective was to develop and design performance audit 
course materials on health issues, including a case study based on 
ASOSAI performance audit training guidelines. At the end of the 
workshop, the participants expressed their appreciation for the 
opportunity to exchange ideas and experiences on designing effective 
performance audit training materials. 

For additional information, contact the National Audit Academy: 

E-mail: ljbaudit@audit.gov.my, ag@audit.gov.my.
Web site: www.audit.gov.my. 

Nauru: 

New Director of Audit Appointed: 

In May 2008, the President of the Republic of Nauru appointed B.R. 
Mondal to a 2-year term as the Director of Audit. Prior to his 
appointment, Mr. Mondal had been a member of the Indian Audit and 
Accounts Service under the Comptroller and Auditor General of India. 
Since 1994, he had served as the Senior Deputy Accountant General, the 
Deputy Accountant General, and the Director of Commercial Audits in 
different provinces throughout India. 

Mr. Mondal worked in a variety of areas during his long career in the 
Indian public service. He worked in government accounts, public works 
audits, and certification audits for World Bank projects. He also 
served as the alternate course director of the international training 
program on audits of the energy sector. Mr. Mondal spent a brief time 
in the United Kingdom's National Audit Office as an expert on 
financial attestation audits. He is also an expert in sustainable 
development. 

Mr. Mondal holds a masters of science degree in sustainable 
development and business administration and is currently working on 
his Ph.D in management. 

For additional information contact the Nauru Audit Department: 

Fax: ++674 444 32 36. 

Netherlands: 

New Board Member of Court of Audit: 

In October 2008, Gijs de Vries was appointed a member of the board of 
the Netherlands Court of Audit. He joins the two other board members, 
Saskia J. Stuiveling (President) and Gerrit de Jong. Before his 
appointment, Mr. de Vries was a senior fellow at Clingendael, the 
Netherlands Institute of International Relations. 

[Photograph: Gijs de Vries] 

Mr. de Vries replaced Pieter Zevenbergen, who retired from the board 
in October. Mr. Zevenbergen had been a member of the Court of Audit 
since May 1999. 

During his 9 years on the board, Mr. Zevenbergen was involved in a 
wide range of issues. He had a particular interest in developments in 
public private partnerships, legal entities with statutory tasks, and 
monitoring. Mr. Zevenbergen was also a strong supporter of the Court 
of Audit's international work. He played an active role in cross-
border environmental auditing and the establishment of audit offices 
in a variety of countries, especially in Africa. 

For additional information, contact the Court of Audit: 

E-mail: internationalaffairs@rekenkamer.nl. 
Web site: www.rekenkamer.nl. 

Puerto Rico: 

Annual Initiative to Improve Public Administration and Prevent 
Corruption: 

The Office of the Comptroller of Puerto Rico carries out an annual 
program to improve public administration and prevent corruption. The 
program encourages government officials to strengthen internal 
controls in their offices and promote higher administrative standards. 
Under the program, circular letters are sent to the three branches of 
government and identify certain criteria or evaluation elements with 
which the entity must demonstrate compliance. Each criterion or 
evaluation element is based on a law, regulation, or norm of sound 
public administration, and the values assigned to the criteria or 
evaluation elements total 100 points. 

Once a year, auditors from the Puerto Rican SAI visit the entities to 
evaluate their compliance and recognize those entities that score 80 
points or more. As part of the strategy, the auditors also assist 
government entities by explaining the criteria or evaluation elements 
and providing practical means to achieve them. The strategy is 
designed to reward compliance rather than to penalize the failure to 
comply. 

The criteria or evaluation elements include maintaining up-to-date 
accounting registries and banking reconciliations; preparing financial 
information according to applicable laws; maintaining a balanced 
budget without overdrafts; preparing a strategic plan; complying in a 
timely manner with corrective action plans to address recommendations 
of internal and external auditors; establishing and promoting an 
ethical culture and ethical values; carrying out an effective internal 
audit activity; and performing annual risk assessments of the entity. 

For the year ended June 30, 2007, entities in the legislative, 
judicial, and executive branches, including the offices of legislators 
in the Senate and House of Representatives, were evaluated. Of the 317 
identified government entities, 263 (83 percent) participated 
voluntarily and 213 (67 percent) received certificates of recognition. 
All 27 senators and 49 of the 51 representatives participated in
the project and obtained certificates of recognition. In May 2008, the 
results of this audit strategy were disclosed through the publication 
of 11 special reports. These reports and the circular letters 
describing the criteria and evaluation elements are available on the 
Web site of the Puerto Rican SAI. 

For additional information, contact the Office of the Comptroller of 
Puerto Rico: 

E-mail: ocpr@ocprgov.pr. 
Web site: www.ocprgov.pr. 

Sweden:; 

New Auditor General: 

In July 2008, the Swedish Parliament appointed Claes Norgren to a 7-
year term as one of the three Auditors General who head up the Swedish 
National Audit Office. He joins Karin Lindell and Eva Lindstrom, who 
will continue in their respective offices as Auditors General. 

[Photograph: Claes Norgren] 

Mr. Norgren has a bachelor of science degree in business administration
and economics. He previously served as Director General for the 
Swedish Competition Authority (2003-2008) and the Swedish Financial 
Supervisory Authority (1993-2003). Before that time, Mr. Norgren was 
the Deputy Governor of Sweden's central bank (1990-1993) and Director 
of Funding and Loans in the Swedish National Debt Office (1987-1990). 

Mr. Norgren has been chairperson of the Swedish Agency for Government 
Employers and a member of the European Commission Banking Advisory 
Committee, the Basel Committee on Banking Supervision, and the 
Financial Action Task Force against Money Laundering. 

For additional information, please contact the Swedish National Audit 
Office: 

E-mail: iint@riksrevisionen.se. 
Web site: www.riksrevisionen.se. 

Correction: 

On p. 2 of the January 2008 issue of this Journal, the article whose 
authors received the Elmer Staats Award at the XIX INCOSAI was 
incorrectly identified as having been published in the April 2006 
issue. The article was published in the April 2004 issue. 

[End of section] 

Project Management in the Public Sector: 

by Ian McPhee, Auditor General of Australia: 

[Editor's note: This article is adapted from an address to the 
Australian Institute of Project Management on October 9, 2007, 
entitled "Project Management—Some Reflections on the Management of 
Projects in the Australian Public Sector."] 

Managing and implementing projects well are important issues for the 
public sector. The government tasks the public sector to use public 
resources to deliver large and complex projects for the benefit of its 
citizens. 

Implementing new government programs presents the same challenges as 
implementing projects and should be considered in this context. It 
goes without saying that government programs or policies need to be 
delivered on time, on budget, and in accordance with expectations—this 
is no easy task given the complexity of the environment in which 
public administration is delivered. The same is true for projects that 
contribute to the delivery of government outcomes. 

In recent years, the Australian National Audit Office (ANAO) has 
reviewed public sector projects ranging from the implementation of 
major information technology (IT) systems, to the acquisition of 
defense capability, to the sale of assets. Our reports on these 
reviews give an important message: while project management may be the 
centerpiece, other key variables in the equation include governance 
arrangements, people skills, and stakeholder involvement in systems 
that give visibility to project status. Not surprisingly, the most 
disappointing project outcomes demonstrate that the failure to pay 
close attention to any of these variables puts projects at risk. 

As the links between entities, programs, and functions become more 
complex, our environment continues to become more challenging. This 
means that project managers need to deal with a greater level of 
interconnectedness, especially with technological enablers that help 
support program delivery. 

While the fundamentals of project management may not change 
significantly, risk management is becoming increasingly important. 
Achieving program outcomes often requires the involvement of many 
levels of government, other entities, and the private sector. If 
implementation doesn't go according to plan, increasing levels of
interdependence bring additional risks and costs. Significant 
interdependencies include partners that play a key role in determining 
whether or not a project is successful and the effect on partners that 
rely on projects being delivered on time. 

In addition to having the necessary technical skills, successful 
project managers need to have skills in managing relationships. For 
example, they need to be able to handle the pressures that inevitably 
come with managing larger and more complex projects; they also need to 
have the skills to interact with stakeholders with technical 
competence, timeliness, courtesy, and respect. 

Keys to Improving Project Management: 

In view of these trends, the ANAO's experiences point to the following 
four factors as key to improving project management in the Australian 
government. 

Greater recognition of the importance of project management in 
delivering outcomes for government. 

Project management is the key to turning government's policies and 
aspirations into results. This has been recognized recently in a 
number of ways. For example, a Cabinet Implementation Unit was 
established to track the implementation of key new programs and budget 
measures. Also, the ANAO and the Department of Prime Minister and 
Cabinet issued a joint better practice guide entitled Implementation 
of Programme and Policy Initiatives: Making implementation matter. 

Methodologies designed to better manage risks to successful delivery. 

Project managers need a risk management methodology to assist them in 
delivering a structured approach to planning risk management. Risks 
associated with projects have to be treated in a positive and 
proactive way. Another significant contribution to managing project 
risks is employing an appropriate project management methodology to 
plan, record, and monitor project performance. 

Increased investment in developing staff project management skills. 

It is critical that suitably qualified and experienced staff be 
available in both the public sector and industry. Entities 
increasingly recognize the need to have a highly trained workforce to 
manage projects, and they have implemented a range of initiatives 
designed to improve the skills of their project managers. 

Better understanding of the success factors in managing projects. 

There is an increasing body of knowledge about what works best, and 
the Australian government's ability to manage projects can be further 
improved through continuous learning. Two initiatives in this context 
are worthy of mention: the use of a formal assessment process to 
measure project maturity and the establishment of project management 
offices that provide centralized project and management support and 
services across the entity. 

Steps in Project Management: 

Projects are much more likely to result in successful outcomes when 
the following project management steps have been taken: 

* Prepare a comprehensive business case. The case should address 
issues such as the expected benefits, estimated costs, risks to 
successful outcomes, and proposed governance arrangements. It is 
important that predicted or estimated project benefits be quantified 
to the greatest extent possible. The benefits should be factually and 
objectively based. 

* Complete a formal risk assessment. This assessment should identify 
risks and outline appropriate mitigation strategies for each risk. 
Where these judgments are critical to successful program or policy 
outcomes, they need to be undertaken by senior managers and be subject 
to intensive scrutiny. 

* Identify internal and external resource requirements and commit the 
necessary resources. 

* Establish governance arrangements and clearly communicate them to 
all parties. These arrangements should cover project ownership, 
approvals, ongoing monitoring, and review and project sign-off. 
Increasingly, such arrangements will need to address the 
responsibilities of other entities that have a stake in the project 
outcome. 

* Follow proper recordkeeping practices. Particular attention should 
be given to ensuring that key decisions, and the rationale for them, 
are documented. 

* Establish appropriate probity and quality assurance arrangements. 

* Set up administrative arrangements for the project. In particular, 
robust financial management of all project costs is required for the 
life of the project. 

ANAO Reports on Project Management: 

The following ANAO audit reports give additional information about 
project management in the Australian context. All ANAO publications 
can be found on the ANAO's Web site: www.anao.gov.au: 

* ANAO Audit Report No. 24, 2006-07, Customs' Cargo Management Re-
engineering Project; 

* ANAO Audit Report No. 34 2006-07, High Frequency communication 
system Modernisation Project; 

* ANAO Audit Report No. 11 2007-08, Management of the FFG Capability 
Upgrade; 

* ANAO and Department of Prime Minister and Cabinet, Better Practice 
Guide, Implementation of Programme and Policy Initiatives: Making 
implementation matter (October 2006). 

For additional information, contact the author at 
ian.mcphee@anao.gov.au. 

[End of section] 

Audit Profile: The Auditor-General's Office of Singapore: 

by Lim Soo Ping, Auditor-General of Singapore: 

[Photograph: Lim Soo Ping] 

[Editor's note: In 2008, the Auditor-General's Office of Singapore 
rejoined INTOSAI after an absence of more than 20 years. In this audit 
profile, Mr. Lim updates INTOSAI members on the current state of 
affairs in his office.] 

History: 

The beginnings of the Auditor-General's Office of Singapore can be 
traced back to 1867 when Singapore was a British colony. Archival 
records from the 19th century show that the Audit Office in Singapore 
submitted annual reports on the accounts of the "Straits Settlements" 
to the Colonial Secretary in London. 

Shortly after Singapore became a sovereign state in 1965, the 
Constitution of the Republic of Singapore and the Audit Act were 
enacted. Under this legislation, the Director of Audit (as the Auditor-
General was then called) reported to the President of Singapore. In 
the late 1980s, the Audit Department was renamed the Auditor-General's 
Office (AGO). 

AGO's mission is to audit and report to the President and Parliament 
on the proper accounting of public moneys and the economic, efficient, 
and effective use of public resources to enhance public accountability. 

Statutory Duties of the Auditor-General: 

The Auditor-General is required to audit all government ministries, 
departments, and other public authorities and bodies as prescribed by 
written law. Where the enabling act of a public authority or body does 
not so provide, the Auditor-General may audit the accounts at the 
request of that public authority or body. 

The Auditor-General audits the accounts of 15 government ministries 
and 7 state organs. The public authorities under AGO's audit purview 
comprise mainly statutory boards,[Footnote 1] which AGO audits on a 
rotational basis. During the time between AGO audits, the statutory 
boards are audited by public accounting firms that are appointed in 
consultation with the Auditor-General. 

The Auditor-General also has a role, most likely unique to Singapore, 
in protecting the country's reserves. Under the constitution, the 
President of Singapore has discretionary and custodial powers to 
safeguard past reserves accumulated by the government. Past reserves, 
which the government does not accumulate during its current term of 
office, can only be used with the President's concurrence. The 
Constitution requires the Auditor-General to inform the President of 
any proposed government transaction that, to his knowledge, is likely 
to draw on past reserves. 

Independence: 

To ensure the independence of the Auditor-General, the Constitution 
provides that he be appointed by the President and dictates that he 
cannot be arbitrarily removed from his position and his salary cannot 
be reduced by the government. His duties and responsibilities 
(including audit scope and coverage) are spelled out in the 
Constitution and the Audit Act. To carry out his work, the Audit Act 
empowers the Auditor-General to have access to all books, records, and 
reports relating to the accounts subject to his audit and to comment 
on all matters relating to public accounts and public moneys. The 
Report of the Auditor-General is submitted to the President and 
presented to Parliament annually. 

Public Accounts Committee: 

The Public Accounts Committee (PAC), a select committee of Parliament, 
reviews the Report of the Auditor-General. The PAC conducts inquiries 
into selected issues by calling on ministries to (1) account for 
lapses identified in the report and (2) update the PAC on corrective 
actions being taken. The Auditor-General attends the PAC meetings and 
provides clarification on his report and other audit issues raised by 
the committee. The PAC reports its findings, conclusions, and 
recommendations to Parliament. 

Organization: 

The Auditor-General is assisted by a Deputy Auditor-General and two 
Assistant Auditors-General. As shown in figure 1, AGO's organization 
comprises four departments, namely the Audits Department, the Special 
Audits Department, the Policy and Research Department, and the 
Corporate and Public Affairs Department. 

Figure 1: AGO Organization Chart: 

[Refer to PDF for image: Organization Chart] 

Top level: Auditor-General; 

Second level, reporting to Auditor-General: 
Deputy Auditor-General; 

Third level, reporting to Deputy Auditor-General: 
Audits Department: 
- Government Audits; 
- Statutory Board Audits; 
Special Audits Department: 
- Performance Audit; 
- Information Technology Audit; 
Policy & Research Department; 
Corporate & Public Affairs Department: 
- Corporate Planning, Human Resources, Finance and Administration; 
- Public & International Relations; 
- Information Technology Support Branch. 

[End of figure] 

The Audits Department is responsible for financial and compliance 
audits on the accounts of government ministries and departments and 
other public authorities. 

The Special Audits Department is responsible for performance audits 
and information technology audits. 

The Policy and Research Department is responsible for formulating and 
implementing AGO's policies and conducting research. 

The Corporate and Public Affairs Department is responsible for the 
corporate and administrative functions, including international and 
public relations. 

Personnel: 

Our auditors come from various disciplines, in particular accounting, 
commerce, engineering, and computer and information science. About 
half are Certified Public Accountants (CPA); a number of them have 
other professional qualifications, such as Certified Information 
Systems Auditor (CISA), Chartered Financial Analyst (CFA), and 
Certified Internal Auditor (CIA). 

Professional Development: 

AGO has in place a structured training and development program that 
covers foundational, professional, and leadership training. AGO's 
training academy carries out its training and development program 
through an array of formal courses, self-study, and on-the-job 
training. Officers with high leadership potential are sponsored for 
overseas training, such as the International Auditor Fellowship 
Program at the U.S. Government Accountability Office. 

AGO is represented in a number of professional bodies and committees 
in Singapore. These include the Auditing and Assurance Standard 
Committee of the Institute of Certified Public Accountants of 
Singapore (ICPAS) and the Advisory Committee on Accounting Standards 
for Statutory Boards. 

AGO also emphasizes the importance of public education because a 
parliamentary democracy is better served if the general public is 
familiar with the concept and practice of public accountability. AGO 
achieves this through its Web site and publications as well as 
briefings/seminars to public officers. The AGO Academy contributes to 
the public education effort by offering courses for officers in the 
public sector. 

International Cooperation: 

In the past year, AGO has received delegations from various SAIs. As 
an INTOSAI member, we look forward to further exchanges, especially 
through contacts made through the INTOSAI network and programs. They 
provide useful opportunities for the sharing of knowledge and 
experience in government auditing and for discussing common issues 
relating to challenges SAIs face in a rapidly changing globalized 
world. 

For further information, contact the Auditor-General's Office: 

E-mail: ago_email@ago.gov.sg. 
Web site: www.ago.gov.sg. 

Footnote: 

[1] A statutory board is a body that is established or constituted by 
or under a public act and that has a public function. 

[End of section] 

20th Conference of Commonwealth Auditors General: 

by Sallyanne Harper, U.S. Government Accountability Office: 

The Bermuda National Audit Office hosted the 20th Conference of 
Commonwealth Auditors General July 6-9, 2008. The Commonwealth 
comprises 53 nations and 2 billion people, approximately 30 percent of 
the world's population. 

More than 45 Commonwealth SAIs were represented at the conference. 
Participants also included representatives from the United Kingdom 
Commonwealth Secretariat and observers from the INTOSAI Secretariat 
General, the Organization of American States (OAS), this Journal, and 
the Samoan SAI. The conference theme was Accountability for the 21st 
Century, and participants considered two primary topics under this 
theme: the powers and responsibilities of Commonwealth auditors 
general and supporting the scrutiny functions of parliaments and 
legislatures. 

[Photograph: Participants in the Conference of Commonwealth Auditors 
General in Bermuda in July 2008] 

At the opening session, Bermuda's Minister of Finance, the Honorable 
Paula Cox, officially welcomed conference participants. Linda Fealing, 
Inspector General of the OAS, reflected on the conference theme and 
the role of the OAS in transparency and accountability. On behalf of 
Dr. Joseph Moser, INTOSAI's Secretary General, Gertrude Schicker, 
Deputy Director of the Austrian SAI summarized the work of the XDC 
INCOSAI and underscored the themes of the conference. She noted that 
the principle of auditor general independence embodied in the recently 
adopted Mexico Declaration on SAI Independence would "continue to 
strengthen the position of the INTOSAI member institutions toward 
legislative bodies and authorities, as well as governments." 
Conference attendees also received a message of welcome from the 
Commonwealth Secretary General, Katnalesh Sharma, and a presentation 
by John Wilkins and Marah Kaifala of the Commonwealth Secretariat. 
These opening presentations set the scene and provided broad 
background and context for the remaining conference sessions. The 
speakers clearly established the central role of auditors general in 
the accountability framework as key to enhancing accountability across 
the Commonwealth. 

Subtheme 1: The Powers and Responsibilities of the Commonwealth 
Auditors General: 

Terence Nombembe, Auditor General of South Africa, chaired subtheme 1, 
overseeing presentations by SAIs from the United Kingdom, Australia, 
Ghana, Uganda, Sri Lanka, the Cayman Islands, Malaysia, India, Malta, 
and Papua New Guinea. 

The presentations and subsequent discussions reinforced the centrality 
of the auditor general's independence to ensuring that accountability 
mechanisms function effectively and the critical importance of 
preserving that independence in the constitution or by law. It was 
noted that this principle of independence, recently reinforced in the 
adoption of the Mexico Declaration on SAI Independence, is the most 
significant attribute of the auditor general function within the 
Westminster, or Parliamentary, external audit model. 

However, enshrining the independence of the auditor general in law 
does not in itself guarantee that independence. The conference heard 
about a number of challenges to the independence of auditors general. 
The first arises from the increasing demands and expectations that 
auditors general are called upon to meet. Participants agreed on (1) 
the importance of constantly maintaining professionalism and the 
quality of their work and (2) dealing with Public Accounts Committees 
(PAC), government, and other stakeholders in an open but robust way. 
The second challenge is securing the resources auditors general need 
to discharge their responsibilities fully and effectively. Auditors 
general have explored different ways of funding their offices, 
including charging fees for the work they do. Overall, they expressed 
a preference for direct funding from Parliament or the legislature, 
even though this arrangement may not be ideal in all circumstances. 
Participants stressed the need to demonstrate clearly the benefits 
that a well resourced, fully functioning audit office can bring to all 
concerned. 

The third challenge is functioning effectively in a difficult and at 
times hostile environment. To meet this challenge, auditors general 
must engage effectively with stakeholders and others who use their 
work—in particular Parliament, the legislature and, where it is in 
place, PACs. Auditors general also stressed the importance of 
following up on recommendations to ensure that the government responds 
properly to their work. 

Subtheme 2: Supporting the Scrutiny Functions of Parliaments and 
Legislatures: 

Subtheme 2, chaired by Terrance Bastian, Auditor General of the 
Bahamas, took as its starting point the varying functions and levels 
of effectiveness of PACs in different countries. In the theme paper 
for this topic, Sheila Fraser, Auditor General of Canada, reflected on 
the Canadian experience and her SAT's commitment to helping 
parliamentarians oversee public finance. Ms. Fraser outlined various 
means by which her office supports the PAC and other parliamentary 
committees in carrying out their scrutiny functions—for example, 
appearing as an expert witness, providing advice and support, and 
responding to requests to undertake specific audits. In particular, 
she noted a guide (Examining Public Spending) her office provides to 
parliamentarians to assist them in their reviews. Conference attendees 
received copies of this primer. 

The Auditor General of South Africa, Terence Nombembe, began his 
remarks on this theme by noting that "in spite of the difficult legacy 
it inherited, South Africa is a dynamic country filled with promise, 
hope, and opportunity." His country paper focused on two related 
areas: what his office is doing to help support national, regional, 
and local oversight within South Africa and the role Commonwealth 
auditors general can play in promoting a renewed international focus 
on supporting PACs. He also highlighted the progress that has been 
made within South Africa through the formation of the South Africa 
Association of PACs (APAC) and the Southern African Regional 
Association of PACs (SADCOPAC). 

The Auditor General of the Bahamas, Terrance Bastian, described recent 
CAROSAI attempts to collectively raise the profile of the region's 
SAIs and encourage parliamentary scrutiny of public finances. A 
CAROSAI survey carried out by the Trinidad and Tobago SAI concluded 
that the PAC model was not working effectively in the Caribbean and 
identified a need to train and support parliamentarians and their 
staff, increase transparency, and make oversight a higher priority for 
the region's parliaments. 

The concluding presentation for this subtheme introduced a research 
paper prepared by the Overseas Development Institute for the United 
Kingdom's National Audit Office. The paper explored the effectiveness 
of PACs around the Commonwealth and suggested at least three key 
effectiveness principles: the independence of the PACs, the capacity 
to avoid questions of policy, and the ability of different parties to 
work together. A fourth principle emerged from conference discussions—
transparency in the work and proceedings of PACs. 

[Photograph: Delegates listen carefully to presentations at the 
Commonwealth Auditors General Conference] 

Conference participants discussed topics related to this theme in 
three separate workshops. In the first workshop, participants 
discussed how audit offices can help their PACs become more effective. 
Auditors general concluded that they could learn from each other's 
experiences in supporting PACs. They also discussed the importance of 
improving communication between the auditor general and the PAC—for 
example, by presenting reports and other material in a way that 
engages PAC members and facilitates their examination of specific 
subjects. Auditors general also agreed on the importance of the PACs 
considering topics of current public interest. However, in a number of 
Commonwealth countries, backlogs and delays in the preparation and 
submission of accounts made this difficult. Auditors general also felt 
that more could be done to provide training for PACs and to identify 
best practices that promote effective PAC functioning. They concluded 
that more exchanges of learning and experience between PACs would be 
helpful and suggested that the Commonwealth structures might be able 
to help facilitate this process at the international level. 

In the second workshop, participants discussed the wider support audit 
offices can provide to Parliament. Auditors general concluded that 
there were opportunities in this area, and they identified potential 
benefits as well as risks and barriers to providing this wider 
support. However, auditors general can adopt strategies to surmount 
these barriers and manage these risks. 

The third workshop focused on issues arising from Commonwealth 
Secretariat initiatives to strengthen public financial management and 
promote better governance in Commonwealth countries. Participants 
concluded that the Secretariat and Commonwealth auditors general could 
collaborate more closely in this area. 

In all three workshops, the auditors general expressed the desire to 
continue the dialogue with the Commonwealth Secretariat that began at 
the Bermuda conference. They also expressed the hope that the 
Commonwealth Secretariat would participate in future conferences. 

Other Conference Business: 

At its final working session, the participants approved without 
amendment a proposal for funding future Commonwealth Auditors General 
conferences and accepted an offer from Namibia to host the next 
conference in 2011. 

Other Conference Activities: 

Throughout the conference, the Auditor General of Bermuda and his 
staff treated participants with warmth and hospitality. They arranged 
for a welcoming reception at the historic Government House and, on the 
following evening, a lovely outdoor reception at the Premier's 
Residence, where the conference attendees were entertained by local 
musicians and welcomed by the Premier. The conference concluded with a 
gala dinner at the Commissioner's House with wonderful music and 
entertainment. Conference participants also had an opportunity to tour 
St. Georges and learn its history. 

For additional information, contact the Bermuda National Audit Office: 

e-mail: eplace@gov.bm. 

[End of section] 

Spotlight on The Strategic Plan: 
		
by Kirsten Astrup, INTOSAI Director of Strategic Planning: 

[Photograph: Kirsten Astrup] 

In the July issue of this Journal, I promised to write about 
cooperation with other standard-setting organizations—in particular, 
the Institute of Internal Auditors (IIA). The IIA is one of only two 
associate members in INTOSAI, which clearly emphasizes how important 
this connection is for both INTOSAI and the IIA. Although I will not 
discuss INTOSAI's cooperation with the World Bank (the other INTOSAI 
associate member) at this time, I may do so later, as INTOSAI and the 
World Bank have worked side by side to fight poverty globally and help 
developing societies on their way to prosperity. 

Before going any further, I must tell you that I am a member of the 
IIA and its Advocacy Advisory Group. Some of you may think that I am
abusing my position by covering the IIA in this column. However, I 
believe that working in an internal audit environment is a valuable 
experience for any external auditor. More than 20 years ago, I was 
working in the Norwegian audit office when the Secretary General of 
the national postal service approached me. The postal service had 
decided to establish an internal audit function and needed someone to 
take on that task. At the time, internal audit was not as common as it 
is today and, except for the financial sector, very few Norwegian 
companies and institutions had internal audit units. 

I experienced a steep learning curve in my new position, but it was a 
pleasant time, and I returned to my previous position with a better 
understanding of internal audit and internal control in general. I 
also learned that there were some negative attitudes towards internal 
audit among external auditors, and I wondered whether this was 
motivated by a fear that internal auditors were a threat to their 
position as "the auditor." I am glad to say that this way of thinking 
has changed. There is space for all of us in the profession—we simply 
have to delineate our duties and respect each other's work. 

Standard-setting is an important element in the INTOSAI strategic plan 
that is reflected in goal 1: "Promote strong, independent, and 
multidisciplinary SAIs by encouraging SAIs to lead by example and 
contributing to the development and adoption of appropriate and 
effective professional standards [emphasis added]." Professionalism 
starts at home—we all have to do our best in the day-to-day audit work 
of our SAIs. But to do so, we need standards and guidelines on how to 
best carry out our work. 

Henrik Otbo, Chairman of INTOSAI's Professional Standards Committee 
(PSC) and Auditor General of Denmark, signed memoranda of 
understanding on cooperation in standard-setting with both the 
International Federation of Accountants (IFAC) and the IIA. As a 
recently selected member of the Internal Auditing Standards Governance 
Board, he will also be able to influence internal audit standards for 
the benefit of public sector auditing. In the work of standards 
setting, our mutual efforts in organizations like INTOSAI, IFAC, and 
IIA have proved to be of great value. IFAC comprises 157 members and 
associates in 123 countries, representing more than 2.5 million 
accountants in public practice, education, government service, 
industry, and commerce. The membership of IIA consists of 160,000 
individual members from all over the globe. INTOSAI's 188 member SAIs 
represent the interests of a huge number of public sector auditors. 

Even though INTOSAI develops new standards as needed, cooperation with 
other international standard-setters is important to seek to influence 
and address issues of practical interest to SAIs. The area of 
financial audit standard-setting provides a fine example of 
cooperation: INTOSAI has adopted a dual approach that complements IFAC 
standards with a practice note developed by INTOSAI for specific 
issues. This approach shows that despite the differences between 
public and private sector auditing, there is a place for beneficial 
cooperation. 

While internal and external auditors within the public sector have 
different roles, they share the same broad purpose of promoting good 
governance by contributing to the sound use of public resources and 
promoting efficient, effective, and economic public administration. 

On a global level, INTOSAI and the IIA have cooperated closely and 
will continue to share their experiences. In his speech to the IIA 
Board in July 2008, Dr. Josef Moser, INTOSAI's Secretary General, 
encouraged greater collaboration between the IIA and INTOSAI. 
Strengthening cooperation and ties between these two global 
organizations is highly desirable and will also greatly benefit all 
concerned at the national level. Even though the internal audit 
function may be organized differently in different countries, 
effective internal audit is a fundamental component of good 
governance. To be good partners in the audit field, we should share a 
common language and understand our respective roles, responsibilities, 
and expectations. 

Finally, I would like to reflect upon comments by the chairman of 
INTOSAI's Governing Board, Arturo Gonzalez de Aragon, in the last 
issue of this Journal. He stated that the future always presents 
challenges and that we must keep up with the pace of change if we want 
to influence events, instead of merely reacting to them. History waits 
for no one. For INTOSAI to become a model international organization, 
he affirmed, all of us must intensify international exchanges, become
acquainted with best practices, and share new methodologies in the 
audit profession. He observed that the synergy created by 
incorporating these efforts within the framework of our strategic plan 
has already allowed us to attain real outcomes in INTOSAI. I believe 
that this a very good description of the arena in which INTOSAI 
operates and an encouragement to all of us to strengthen our efforts. 

In the January issue of this Journal, I will discuss INTOSAI's 
communications strategy, which is being developed by a task force 
headed by INTOSAI's Secretary General. By that time, the task force 
will have had its first meeting in Vienna in connection with the 58th 
meeting of the Governing Board. 

Please feel free to contact me at astrup@rechnungshof.gv.at if you 
have any comments or feedback on issues related to the implementation 
of INTOSAI's strategic plan. 

[End of section] 

Inside INTOSAI: 

Financial Audit Guidelines Subcommittee: 

Subcommittee Meetings for 2008: 

In April, the Financial Audit Guidelines Subcommittee (FAS) held a 
meeting in London hosted by the U.K. National Audit Office. The 
subcommittee discussed the prerequisites for its work after 2010 and 
established its due process basis. The FAS and invited representatives 
of the secretariat of the Subcommittee on Compliance Audit discussed 
continued cooperation between the two subcommittees. 

At the subcommittee's next meeting on October 16-17, 2008, hosted by 
the Board of Audit and Inspection of the Republic of Korea, the main 
agenda item will be the approval of 10 practice notes for exposure. 

New Subcommittee Member: 

In August 2008, the Office of the Auditor General of South Africa 
became a new member of FAS. The subcommittee looks forward to the 
South African SAT's contributions to its work during this intense 
phase. 

Expert Meetings: 

Special expert teams (SET) are groups of three or four experts 
assigned to draft practice notes to a certain series of International 
Standards on Auditing (ISA). At the beginning of June, SET 2 met in 
Stockholm to draft practice notes to ISAs 500, 560, 570, and 580. The 
team was made up of experts from the SAIs of Scotland and Estonia and 
the European Court of Auditors. 

In August, SET 3—comprising experts from the SAIs of Norway, South 
Africa, and Sweden—drafted practice notes to ISAs 200, 210, 240, and 
250. 

After FAS approval, the drafts developed will be exposed for comment 
from November 2008 through January 2009. 

In September, SET 4 (with experts from the SAIs of Pakistan, the 
United States, and Canada) met to draft practice notes to ISAs 600 and 
610. The meeting took place in New York and was hosted by the 
International Auditing and Assurance Standards Board (IAASB). 

Experts to draft practice notes as part of the remaining SETs will be 
appointed during the fall of 2008. 

Evaluation of FAS Work Processes: 

In April 2008, a group of experienced experts met in London with 
members of the FAS Secretariat to evaluate the subcommittee's work 
processes. Participants in the meeting proposed that to speed up the 
development of practice notes, only special expert teams be used from 
this time forward. The FAS approved this proposal and issued a new 
plan for the practice note work (see the following section). 

As a condition for continued financial support from the World Bank 
(one of the subcommittee's main financial supporters), an external 
consultant will carry out a comprehensive evaluation of the FAS's work. 

Schedule for Exposure of Practice Notes: 

The schedule below lists the SETs responsible for preparing practice 
notes and the planned exposure periods for the notes. The exposure 
periods may be delayed if there are any departures from approval 
procedures at upcoming FAS meetings. 

Set 2 (Exposure Period: November 2008—January 2009): 

* ISA 500 — Considering the Relevance and Reliability of Audit 
Evidence; 
* ISA 560 — Subsequent Events; 

* ISA 570 — Going Concern; 

* ISA 580 — Written Representations. 

Set 3 (Exposure Period: November 2008—January 2009): 

* ISA 200 — Overall Objective of the Independent Auditor, and the 
Conduct of an Audit in Accordance with ISAs; 

* ISA 210 — Agreeing the Terms of Audit Engagements; 

* ISA 240 — The Auditor's Responsibilities to Consider Fraud in an 
Audit of Financial Statements; 

* ISA 250 — The Auditor's Responsibilities Relating to Laws and 
Regulations in an Audit of Financial Statements. 

Set 4 (Exposure Period: December 2008—February 2009): 

* ISA 600 — The Audit of Group Financial Statements (Including the 
Work of Other Auditors); 

* ISA 610 — The Auditor's Consideration of the Internal Audit Function. 

Set 5 (Exposure Period: February 2009—April 2009): 

* ISA 700 — The Independent Auditor's Report on General Purpose 
Financial Statements; 

* ISA 705 — Modifications to the Opinion in the Independent Auditor's 
Report; 

* ISA 706 — Emphasis of Matter Paragraphs and Other Matter(s) 
Paragraphs in the Independent Auditor's Report; 

* ISA 710 — Comparative Information — Corresponding Figures and 
Comparative Financial Statements; 

* ISA 720 — Other Information in Documents Containing Audited 
Financial Statements; 

Set 6 (Exposure Period: April 2009—June 2009): 

* ISA 530 — Audit Sampling; 

* ISA 501 — Audit Evidence Regarding Specific Financial Statement 
Account Balances and Disclosures. 

Set 7 (Exposure Period: May 2009—July 2009): 

* ISA 510 — Initial Audit Engagements—Opening Balances; 

* ISA 520 — Analytical procedures; 

* ISA 540 — Auditing Accounting Estimates, including Fair Value 
Accounting Estimates, and Related Disclosures. 

Translations: 

Final versions of the practice notes are expected to be ready 3 to 4 
months after the end of their exposure periods. The European 
Commission of Auditors will translate the notes into four of the five 
official INTOSAI languages (all except Arabic). The Arabic translation 
will be done by the German translation service Biiro Tazir, and the 
quality assurance will be done by the Moroccan Cour des Comptes. The 
translation process is expected to take most of 2009, and the 
translated practice notes will be presented to the INTOSAI Governing 
Board at INCOSAI 2010. 

For additional information, please contact the FAS Secretariat: 

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

Subcommittee on Performance Audit: 

The Brazilian Court of Audit hosted the second meeting of INTOSAI's 
Subcommittee on Performance Audit (PAS) in Brasilia, Brazil, May 28-
30, 2008. Minister Walton Alencar Rodrigues, the PAS Chair and 
President of the Court of Audit, welcomed the participants, which 
included subcommittee members from the SAIs of Saudi Arabia, 
Australia, France, the Netherlands, Mexico, Norway, and Sweden and 
representatives from the European Court of Auditors, the SAI of 
Denmark (chair of INTOSAI's Professional Standards Committee), the 
World Bank, and the INTOSAI Development Initiative (IDI). 

[Photograph: Participants in the Subcommitte on Performance Audit 
meeting in Brazil in May 2008] 

The meeting agenda included presentations by the SAIs of Denmark, 
Brazil, France, and Australia and by IDI. The Brazilian SAI discussed 
the results of a mini-survey carried out to determine the audit phases 
and audit methods or techniques that should be addressed in new 
performance audit guidelines. The Danish delegates talked about the 
process for developing standards and guidelines and key Professional 
Standards Committee initiatives. The French delegate outlined the work 
of the INTOSAI Program Evaluation Working Group and how this work will 
relate to the PAS in the future. The Australian SAI described 
performance audit issues that are important in Australia and relevant 
to PAS. The IDI delegate addressed the current performance audit 
scenarios in different INTOSAI regions and related IDI strategies and 
actions. 

Participants discussed the next steps in PAS work and approved the 
work plan for 2008-2010. The subcommittee members agreed that PAS 
would prepare standards for performance audit by extracting them from 
current INTOSAI guidelines and would develop guidance on establishing 
a sustainable performance auditing function within an SAI. The work 
plan is available on the PAS Web site: 
http://psc.rigsrevissionen.dk/composite-170.htm. 

The next PAS meeting will be in Norway in April 2009. 

The current members of the PAS are the SAIs of Brazil (Chair), 
Australia, Canada, Denmark, France, Guyana, Kiribati, Mexico, the 
Netherlands, Norway, Saudi Arabia, Slovenia, South Africa, Sweden, 
Tunisia, and the United Kingdom and the European Court of Auditors. 

For additional information, contact the Brazilian Court of Audit: 

E-mail: arint@tcu.gov.br. 
Web site: www.tcu.gov.br. 

Subcommittee on Internal Control Standards: 

On April 21 and 22, 2008, a task force of the INTOSAI Subcommittee on 
Internal Control Standards met in Brussels, Belgium, to discuss how to 
implement the subcommittee's work plan, which was approved at the XDC 
INCOSAI. The Belgian Court of Audit, which chairs the subcommittee, 
hosted the meeting. Other attendees included delegates from the SAIs 
of Bangladesh, Hungary, Lithuania, the Netherlands, Romania, the 
Russian Federation, South Africa, Spain, the Sultanate of Oman, 
Ukraine, the United Kingdom, and the United States. A delegate from 
the Institute of Internal Auditors (IIA), which concluded a memorandum 
of understanding with INTOSAI in 2007, also attended the meeting. 

The task force endorsed the 2008 action plan for collaboration with 
the IIA. According to the terms of this plan, the IIA and the 
subcommittee were to work out joint papers on the independence of 
internal auditors in the public sector and collaboration between 
external and internal auditors in the public sector. After being 
reviewed by both the subcommittee and the IIA, the papers are to be 
included in INTOSAI's framework of professional standards as part of 
the INTOSAI Guidance for Good Governance (INTOSAI GOV) to be approved 
by the XX INCOSAI in 2010. 

According to the action plan, the IIA and the subcommittee also agreed 
to work together to prepare an e-platform of internal control tools 
and develop aspects of good governance. Both entities are committed to 
informing each other about the latest developments in the field of 
internal control. 

The task force reviewed the framework drawn up by the Belgian Court of 
Audit on collaboration between SAIs and internal auditors and the 
IIA's outline regarding the internal auditor's independence in the 
public sector. Based on comments received from task force members at 
and following the meeting, the chair and the IIA are revising the 
documents, which will be submitted to all subcommittee members for 
comment. 

A working group was created to make the e-platform for internal 
control standards and guidance on good governance operational as soon 
as possible. Working group members include the SAIs of South Africa, 
the United States, and the Netherlands, with the latter being the lead 
SAI. 

Finally, the task force suggested that lines of communication be 
opened with COSO as soon as possible to implement the work plan. (COSO 
stands for the Committee of Sponsoring Organizations of the Treadway 
Commission, a nonprofit commission that in 1992 established a common 
definition of internal control and created a framework for evaluating 
the effectiveness of internal controls.) The chair of the Professional 
Standards Committee will take the lead in establishing formal contacts 
with COSO. 

For additional information, contact the Belgian Court of Audit: 

E-mail: International@ccrek.be. 
Web site: www.ccrek.be. 

Additional Events at the VII EUROSAI Congress: 

The July 2008 edition of this Journal reported on the VII EUROSAI 
Congress, held in Krakow, Poland, in June 2008 (see p. 18). A number 
of other events in addition to those reported in that article took 
place at the congress. 

Three international joint audit reports were signed. The first 
reported on a parallel audit conducted by the SAIs of Poland, Ukraine, 
and Belarus and was entitled Protecting the Waters of the Bug River 
Watershed from Pollution. The second, entitled Waste Movement across 
the State Borders of Ukraine, Slovakia, and Poland from 20042007 
(first half) in view of the Basel Convention, reported on a parallel 
audit conducted by the SAIs of Poland, Slovakia, and Ukraine. The 
final joint report was on the international coordinated audit of the 
Chernobyl Shelter Fund that was conducted by the SAIs of Ukraine, 
Germany, Poland, the Netherlands, the Russian Federation, Slovakia, 
Switzerland, and the United States and by the European Court of 
Auditors. 

In addition, two bilateral agreements on cooperation were signed. The 
agreements were between the Accounting Chamber of Ukraine and the 
Spanish Court of Audit and between the Supreme Chamber of Control of 
Poland and the Court of Accounts of Moldova. 

For additional information, contact the Supreme Chamber of Control 
(NIK) of Poland: 

E-mail: wsm@nik.gov.pl. 
Web site: www.nik.gov.pl. 

OLACEFS Working Group on Environmental Audit: 

The sixth meeting of the OLACEFS Working Group on Environmental Audit 
(COMTEMA) took place at the headquarters of the Brazilian Court of 
Audit in Brasilia, Brazil, June 11-13, 2008. 

Representatives of the SAIs of Argentina, Mexico, Paraguay, Colombia, 
and Venezuela participated in the event, and the SAIs of Estonia, 
Peru, El Salvador, and Panama sent observers. The meeting agenda 
included a lecture from a specialist on climate change, presentations 
by Brazilian Court of Audit representatives, and evaluations of the 
actions proposed in the working group's work plan for 2006 through 
2008. 

The members of the working group adopted the 3-year work plan, agreed 
to limit the number of members, and updated descriptions of positions 
and member responsibilities. They also held a preliminary discussion 
of the 2009-2011 work plan, which places a priority on cooperation 
audits related to work plan objectives. 

The Brazilian Court of Audit will continue to coordinate the working 
group until its next meeting in Argentina in April 2009. 

[Photograph: Participants in the OLACEFS Working Group on 
Environmental Audit meeting in Brazil in June 2008] 

For additional information, contact the Brazilian Court of Audit: 

E-mail: arint@tcu.gov.br, omilpl@tcu.gov.br. 
Web site: www.tcu.gov.br. 

New Name for Pacific Regional Working Group: 

The name of the South Pacific Association of Supreme Audit 
Institutions (SPASM) was changed to the Pacific Association of Supreme 
Audit Institutions (PASAI) at the 11th PASAI Congress held in April 
2008. The name change was made to acknowledge that members of the 
working group are from both the North and South Pacific. 

The New Zealand Controller and Auditor-General remains as the 
Secretary-General of PASAI. A new Secretary-General is to be named, 
probably at the 12th PASAI congress in Palau in mid-2009, and a PASAI 
Secretariat will be established in Suva, Fiji. The SPASM Web site has 
been removed and a new Web site will be established at www.pasai.org. 

For additional information, please contact the New Zealand Office of 
the Controller and Auditor-General: 

E-mail: kevin.brady@oag.govt.nz, enquiry@oag.govt.nz. 
Web site: www.oag.govt.nz. 

[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/AFROSAI-E Regional User Guidance on Detecting Fraud while Auditing: 

In 2005, IDI assisted AFROSAI-E (the English-speaking regional 
organization in Africa) in developing training material on detecting 
fraud while auditing. In 2007, audit teams from five countries in the 
region were invited to develop customized fraud guidelines for their 
SAIs with the help of subject matter experts. After validating the 
guidelines' relevance through pilot audits, the teams came together 
for a 2-week workshop in South Africa in July 2008 to develop the 
AFROSAI-E Regional Guidelines on Detecting Fraud while Auditing, which 
will be presented at the region's technical update meeting later this 
year. 

IDI/AFROSAI-E Development of Reporting Guidelines for SAIs: 

IDI has been cooperating with AFROSAI-E to develop a number of 
institutional level interventions, such as needs assessments, 
strategic planning, and calibration of institutional strengthening 
frameworks. In response to a felt need to develop guidelines to enable 
the region's SAIs to report on their performance, five regional 
experts met in South Africa for a week in August 2008 to develop SAI 
reporting guidelines. The guidelines will be reviewed and approved by 
the regional Capacity Building Committee and presented at the AFROSAI-
E technical update meeting later this year. 

IDI/AFROSAI-E Needs Assessment and Strategic Planning Program: 

In 2007, IDI and AFROSAI-E cooperated to initiate a needs assessment 
and strategic planning program for selected regional SAIs. The five 
participating SAIs—Ethiopia, Seychelles, Liberia, Malawi, and Zambia—
conducted needs assessments and developed strategic plans based on 
identified needs. In August 2008, the teams met in South Africa for 1 
week to have their strategic plans reviewed and receive assistance in 
developing operational plans linked to strategic plans. 

IDI/ASOSAI Blended Learning Program for Trainers: 

Although two pools of training specialists have already been trained 
in ASOSAI, the region asked IDI to provide a third train-the-trainers 
program to strengthen the regional training network. For this third 
program, IDI decided to pilot a blend of e-learning and face-to-face 
training. The instructor team reviewed the course material used during 
the previous program at a 2-week redesign meeting held in Vietnam in 
July 2008. Forty participants from 21 targeted SAIs were chosen 
through an online selection process designed to ensure they had the 
right experience, potential, and aptitude. During a 3-week online 
preparatory learning phase in September/October 2008, the selected 
participants were introduced to each other and were given an overview 
of capacity building, the Systematic Approach to Training, and the e-
learning medium. Later in the year, they will meet face to face at the 
Course Design and Development Workshop in Vietnam. In line with recent 
IDI developments, the program aims to create not only classroom 
trainers but also facilitators who can design and deliver different 
kinds of capacity-building interventions. 

IDI/ASOSAI Quality Assurance Program: 

Needs assessments conducted in ASOSAI in 2007 identified a need to 
strengthen the audit quality assurance systems of a number of SAIs in 
the region. Course materials and a draft Quality Assurance Handbook 
were prepared in March 2008. In August 2008, a 2-week Quality 
Assurance Workshop was held in Mongolia for teams from 10 targeted 
regional SAIs. During the workshop, the teams prepared and presented 
plans for conducting pilot quality assurance reviews. Following the 
workshop, the teams carried out pilot quality assurance reviews in 
their SAIs. These quality assurance reviews will be circulated to the 
other participating teams for peer review. 

IDI/OLACEFS Needs Assessment Program: 

This program is designed to identify capacity-building needs in 
OLACEFS and develop the region's capacity to assess needs by training 
SAI staff on needs assessment methodology and techniques. After a 
design meeting in June 2008, a needs assessment survey was sent to all 
SAIs in the region. Based on this survey, seven SAIs were invited to 
send teams of auditors to the Needs Assessment Workshop held in Peru 
during the first 2 weeks of September 2008. After this workshop, the 
teams will perform institutional needs assessments in their SAIs and 
meet in January 2009 to receive feedback on their work. 

Transitional Working Group Meeting in PASAI: 

The Pacific Association of Supreme Audit Institutions (PASAI, formerly 
known as SPASM) is changing its organizational structure and has 
therefore set up a transitional working group that will oversee the 
implementation arrangements. In September 2008, IDI met with the group 
in New Zealand to make some key decisions and identify potential areas 
of cooperation with the region. 

Transregional Capacity-building Program on Auditing Public Debt 
Management: 

SAIs are increasingly requesting capacity development in public debt 
auditing. In view of the topic's relevance and importance within 
INTOSM, IDI decided to undertake a transregional capacity-building 
program in public debt management audit in cooperation with the Debt 
Management Programme (DMFAS) of the United Nations Conference on Trade 
and Development, the United Nations Institute for Training and 
Research, and the INTOSM Working Group on Public Debt. 

Program stakeholders and subject matter experts met at the United 
Nations offices in Geneva, Switzerland, for a 3-day planning and 
curriculum meeting in September 2008 to discuss and agree on the 
program design and roles and responsibilities. They also developed a 
survey questionnaire to be sent out to SAIs in the target regions. 

IDI and Liaison with the INTOSAI community: 

IDI representatives have attended and reported at the following events 
in recent months: CAROSAI meetings and the Commonwealth Auditors 
General Conference (Bermuda), Transitional Plan Implementation 
Workshop (South Africa), and the OLACEFS Regional Training Committee 
meeting (Peru). 

Contacting IDI: 

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

E-mail: idi@idi.no. 
Web site: www.idi.no. 

[End of section] 

INTOSAI 2008-2009 Events: 

October 16-17: 
Financial Audit Subcommittee meeting, Seoul, Korea. 

October 21-23: 
Professional Standards Committee Steering Committee meeting, Beijing, 
China. 

October 29: 
Capacity Building Committee Steering Committee meeting, Rabat, Morocco. 

November 11: 
United Nations/INTOSAI Platform meeting, Vienna, Austria. 

November 12: 
INTOSAI Communications Strategy Task Force meeting, Vienna, Austria. 

November 13-14: 
58th INTOSAI Governing Board meeting, Vienna, Austria. 

January	25-29: 
Working Group on Environmental Auditing meeting, Doha, Qatar. 

February 11-13: 
20th United Nations/INTOSAI Symposium, Vienna, Austria. 

March 17-19: 
Meeting of the Working Group on Privatization, Economic Regulation and 
Public-Private Partnerships, Moscow, Russian Federation. 

April TBD: 
Financial Audit Subcommittee meeting, Luxembourg. 

April TBD: 
Subcommittee on Performance Auditing meeting, Norway. 

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 INTOSAI Journal, October 2008 edition]