Strength of planning of internal audit in budget organisations

Central government bodies with an IA function prepare and regularly update strategic plans (%)

Review of CHU data to verify the percentage of central government bodies with an IA function established that prepare strategic and annual plans. The strategic plans analysed are the most recent ones. The strategic plan adapts to changing expectations and maintain alignment with organizational objectives. It seeks to achieving a balance between cost and value, while making meaningful contributions to the organization’s overall governance, risk management, and internal controls. Its preparation is based on a systematic approach including: - A definition of the critical success factors. - A SWOT analysis. - Identification of key initiatives. Points are allocated based on the percentage of central government bodies where an IA function is established which prepare and regularly update strategic plans (x): • x < 75% = 0 points. • 75% ≤ x < 90% = linear function. • x ≥ 90% = 2 points.

Central government bodies with an IA function prepare annual audit plans (%)

Review of CHU data to verify the percentage of central government bodies with an IA function established that prepare annual plans. The annual plans analysed are the ones for the latest full calendar year. The annual plan identifies the priorities of the IA activity for the corresponding year. It must be based on a documented risk assessment (IPPF 2010-A1). Points are allocated based on the percentage of central government bodies where an IA function is established which prepare annual audit plans (x): • x < 75% = 0 points. • 75% ≤ x < 90% = linear function. • x ≥ 90% = 2 points.

Audit plans are prepared in line with the national legal requirements

Review of the audit plans of five large central government bodies to verify that the plan is prepared in conformity with the national requirements. The sample bodies include three ministries (ministries responsible for finance, interior and infrastructure), and two large agencies (tax administration, road administration). If any of the sample bodies does not exist in the country, alternative bodies will be selected to assess the sample-based criteria. The audit plans are considered to be in conformity with the national requirements if no more than one material/substantial inconsistency between them and requirements in national legislation exists.

Audit plans are prepared in conformity with IA standards

Review of the audit plans of five large central government bodies to verify that the plan is prepared in conformity with IA standards. The sample bodies include three ministries (ministries responsible for finance, interior and infrastructure), and two large agencies (tax administration, road administration). If any of the sample bodies does not exist in the country, alternative bodies will be selected to assess the sample-based criteria. The audit plans are considered to be in conformity with IA standards if no more than one material/substantial inconsistency between them and the IA standards exists.

Audit plans are based on a risk assessment for which the audit universe covers all departments and processes in the organisation

Review of five examples of audit plans and the risk assessment on which they are based, to verify that the audit universe for the risk assessment includes all departments, processes and budget in the organisation. The plans are collected from five large central government bodies. The sample bodies include three ministries (ministries responsible for finance, interior and infrastructure), and two large agencies (tax administration, road administration. If any of the sample bodies does not exist in the country, alternative bodies will be selected to assess the sample-based criteria.

IA evaluates the governance, risk management and control processes in the organisation, using a systematic approach

Review of five examples of audit plans and the risk assessment on which they are based, to verify that the risk assessment is based on an evaluation of the governance, risk management and control processes in the organisation. The plans are collected from five large central government bodies. The sample bodies include three ministries (ministries responsible for finance, interior and infrastructure), and two large agencies (tax administration, road administration. If any of the sample bodies does not exist in the country, alternative bodies will be selected to assess the sample-based criteria.