64 – 2 – SUPREME AUDIT INSTITUTIONS’ INPUT INTO POLICY FORMULATION Internal Auditors to develop this guidance, which features good practice case studies on internal audit in both public and private sector organisations. The guidance recommends ways to establish a cohesive standard of internal audit, promote effective leadership in control systems, and ensure that services provide value for money (NAO and CIIA, n.d).
Public Sector Internal Audit: An investment in assurance and business improvement. This ANAO (2012) guide recommends good practices for planning, resourcing and monitoring internal audit functions. It provides a model internal audit charter and example questionnaires for internal audits.
General Criteria for Internal Control in Public Administration: This TCU study (TCU, 2009b) explores role models for internal risk management and controls, and shows how surveyed countries have addressed this issue in their legal systems. The study’s goal was to support federal senate discussions concerning a bill to define the general criteria of internal controls, risk management and governance in the Brazilian government. The study revealed that the Brazilian internal control system did not comply with international standards.
In addition to the above-mentioned guidance on integrating the management of risk, other international guides include:
From Bolt-on to Built-in: Managing Risk as an Integral Part of Managing an Organization. This resource positions risk management and internal control as a highly relevant and useful process for decision and execution support. It states that these are the processes that boards and management naturally use to ensure their organisation makes the best decisions and achieves its objectives (IFAC, 2015).
International Framework: Good Governance in the Public Sector. This resource was jointly developed by the The International Federation of Accountants (IFAC) and the Chartered Institute of Public Finance and Accountancy (CIPFA) to help improve and encourage effective public sector governance. The framework encourages better governed and managed public sector organisations by improving decision making and the efficient use of resources. The oversight of those responsible for determining an entity’s strategic direction, operations, and accountability, as well as enhanced stakeholder engagement and robust scrutiny, leads to more effective interventions and better outcomes for the public at large (IFAC and CIPFA, 2014).
Taking Stock: SAI activities in supporting policy formulation The data in Table 2.5 below shows a slight variation in the extent of assessment that SAIs make of particular functions of policy formulation. The majority of SAIs have assessed each element put forth in the survey, however, SAIs were slightly less likely to have assessed elements of government-wide steering, and were more likely to have assessed key elements of budgetary planning.
SUPREME AUDIT INSTITUTIONS AND GOOD GOVERNANCE: OVERSIGHT, INSIGHT AND FORESIGHT © OECD 2016
