By Meresimani Vosawale-Katuba, Director (South Pacific), PASAI
The Office of the Auditor-General of Fiji (SAI Fiji) established a Quality Assurance (QA) function in 2017. This was to ensure the SAI’s audit engagements complied with the International Standards of Supreme Audit Institutions (ISSAIs), and that the Quality Control (QC) systems in these audit engagements were effective. More importantly, it enabled the SAI to identify areas for improvement in audit methodology and QC systems as a SAI, with relevant solutions for these issues.
Getting started
Upon its inception, the first order of business for the QA team was to develop a policy and a manual to guide its activities. The team reported directly to the Auditor-General, and maintained a database of findings from all its QA reviews. The database highlighted ‘key focus areas’ audit teams needed to work on. The QA team conducted awareness sessions of the significant or recurring findings from the QA reviews. The team held separate sessions for the preparers and the reviewers of working papers.
The QA team continues to conduct awareness sessions throughout the year so fellow staff keep ‘key focus areas’ in mind while performing audits.
The QA function was established with existing office personnel – a Senior Auditor and an Auditor. Serendipitously, four months later the INTOSAI Development Initiative (IDI) conducted weeklong training for QA reviewers. This assisted the team to navigate the ‘unchartered waters’ of quality assurance at the SAI. PASAI's Quality Assurance Manual was also a main reference point.
SAI Fiji also used QA materials and guidance from AFROSAI-E and the Tasmania Audit Office (through a DFAT-funded twinning programme).
Ingredients for success
For a QA function to be effective, there needs to be an established and documented audit methodology in place that is in line with the ISSAIs. A QC system also needs to be in place and operating effectively. This enables a benchmark for the SAI’s work to be measured against during a QA review.
A QC system is intended to provide the SAI with reasonable assurance that the office and its personnel comply with professional standards and applicable legal and regulatory requirements, and that engagement reports the SAI issues are appropriate in the circumstances.
The support of the SAI Head and Executive Management is also critical for the success and effectiveness of a SAI’s QA function.
It is critical for those performing the QA function to work very well together as a team. As well as having sound technical knowledge, the individuals should have diligence, integrity and mutual respect. The team must also be independent and have sufficient and appropriate experience and authority to perform QA reviews (as required under the standards).
Positive changes
A significant impact of SAI Fiji’s QA reviews was that teams were more careful to ensure quality in their audit working papers, and to obtain sufficient and appropriate audit evidence. The SAI’s audit engagement teams also appreciate how a sufficient and rigorous risk assessment affects the planned audit approach.
Significantly, the independent QA function assisted SAI Fiji to identify and address areas for improvement in its audit methodology. This resulted in a consistent approach to quality across the organisation.
Where to from here
When audits are executed consistently, in line with the requirements and intent of ISSAIs, within a strong system of quality controls across the organisation, and in an environment of objectivity, independence, ethics and integrity, the outcome is quality audits. Enhancing audit quality is really a journey of continuous improvement and change. Delivering quality audit services and providing value-adding insights to our auditees, and ultimately, our citizens, means finding better ways to conduct audits every day.
The IDI and PASAI programme, Financial Statements of Government Audits in line with ISSAIs, includes a QA review of these audits as the final stage of the support. Of the eight participating SAIs, Fiji, Kiribati and Tuvalu have had their reviews carried out. The remaining SAIs (Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu) are targeted to have QA reviews completed by June 2023.
