Tài liệu AUDITING pptx

FINANCIAL AUDITS● The Implementing Organization’s Financial Statements ● Project Financial Statements ● Statements of Expenditures SOEs ● Special Bank Account SA... Audit of Project Fina

● Systematic process of objectively obtaining and evaluating evidence

» Regarding assertions about economic

actions and events;

» To ascertain the degree of correspondence

between those assertions and established criteria; and

» Communicating the results to interested

users (AAA)

Purpose of an Audit

To provide certain degree of

assurance that the activities

reviewed (financial statements,

operations, management practices, etc.) have been performed in

accordance with applicable

standards or practices

FINANCIAL AUDITS

● The Implementing Organization’s Financial Statements

● Project Financial Statements

● Statements of Expenditures (SOEs)

● Special Bank Account (SA)

Implementing Organization’s Financial

● Understanding the Organization

● Evaluating Internal Controls

● Testing Financial Statement

Balances

✔ Not an endorsement of the overall

adequacy of the internal control system

Testing the Balances

● Purpose: To determine if information is fairly presented

● Examples:

» Observation of Inventory-taking

» Verification of Fixed Assets

» Direct Verification with Third Parties

✔Level of Testing Might Depend on

Results from Prior Phases

Audit of Project Financial

Statements

● Overall Objectives

» Statements fairly presented?

– For the period

Audit of Project F/S (cont.)

● Similar to the audit process for the

entity’s financial statements, except:

» Greater emphasis on inspection of valid

supporting documentation

» Additional steps, such as physical observation

of significant items, to substantiate the validity

of expenditures reported.

Audits of SOEs

Primary objective is to ascertain that individual expenditures reported in the SOEs are:

● Fully supported by proper

documentation in files

● Properly authorized and eligible

● Appropriately accounted for

● Effect?

» Results of audit are basis for

determining whether to continue

use of SOEs, or if adjustment must

be made on subsequent claims

Audits of Special

Accounts

Primary objectives are to verify that:

● SA financial statements are fairly

Audits of Special

Accounts

(cont.)

● Auditors should:

» Review the SA records maintained by

the Implementing Institution

» Review the SA bank statements

» Reconcile (including tracking of

in-transit items)

» Directly confirm balances with Bank

» Examine treatment and disclosure of

interest earned on SA

Audits of Adjustment Loans

● Primary focus is on the adequacy of

procedures used to prepare customs or similar certificates

● Limited to examining certificates on

which SOEs have been based and

determining reliability of the procedures applied in verifying or issuing such

certificates

Audits of Adjustment Loans

(cont.)

● Important issues:

» TOR must satisfy financial covenants

» Documentation must not have been used to justify another adjustment loan

» Claims must be properly documented

» Negative list items must be verified

» Cut-off dates must be verified

Requirements for Auditors

● Adherence to principles of integrity,

objectivity, independence and

confidentially

● Adequate and Competent Staff

● Work performed by personnel who have technical training and proficiency

● Proper direction and supervision of work (includes quality control)

Selection of Auditors

● Preferably independent auditors who

meet ISA criteria and are members of bodies affiliated with IFAC

● Government audit institutions should

subcontract with audit firms until

equivalent independence and technical competence is achieved The Bank can help them to meet this goal

Determining Auditor

Acceptability

● TM should consult with an accounting

professional and consider the following:

» Evidence of independence

» Qualifications and experience of key personnel

» Time and personnel reqs of the audit

» Experience with:

– Bank projects – Operations similar to the project

» Peer review, quality control, CPE requirements

of the firm

» Have statutory authority

» Preferably be a member of INTOSAI, and

meet corresponding standards

Contralor General

Private Sector Auditors

● Independent auditors who meet ISA

criteria and are members of bodies

affiliated with IFAC

● Duly licensed to practice the profession

● Competent staff and adequate facilities

● Preferably affiliated with an international firm that provides adequate guidance and quality control

Appointing the Auditor

● The borrower appoints the auditor, but only after the Bank has expressed the acceptability of the auditor proposed

● The auditor should be appointed well before the beginning of the fiscal year Preferably there should be a multi-year contract

Terms of Reference (TOR)

● Provide guidance for the audit and format

of the audit report

● Should not restrict the auditor’s

obligations with respect to legislation,

regulation, and auditing standards

» In the event of poor performance, auditors

should not be able to claim that TOR

requirements prevented them from doing

professional work

● Guidelines & Sample: Annexes 18-19

Additional Guidance

● “Suggested Minimum Guidelines and Terms

of Reference for the Planning and Execution

of External Audits of Borrowers, Executing

Agencies and Operations Financed by the

World Bank”

● FM-600 Summarizes Requirements stated in FM-100, FM-200 and FM-300

● Engagement letters are prepared by

auditors and should not substitute either the TORs or the contract

● Audits by Government Auditors should at

least be supported by acceptable TORs

Auditors’ Opinions

● Written upon completion of the audit of the institution/project financial statements

» Should contain separate SOE paragraph if they

are used in the project

● Types of Audit Opinions

Opinions Required (Project)

● Project Financial Statements (Sources and Applications of Funds, Accumulated

Investments, Supplementary Information)

● Certificates of Expenditures for period

audited

● Special Account

● Compliance

● Internal Control Structure

● Disclosure of Audit Procedures

» All other matters that the auditor judges to

be worthy of management’s attention

Financing of Audit Costs

● Normally financed by Borrower if part of its normal operating expenditures

» Exceptions must be approved by the RVP

● May be included in project budget if

costs are incremental because of project nature

● Audits performed by government

auditors should not be financed by the Bank

Report Submission

● Audited financial statements should be submitted within six months from the end of implementing institution’s fiscal year

» Or sooner if agreed upon by the Bank and the

borrower