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NORMATIVE RESOLUTION OF CALCULATING COMMITTEE ON CONTROL OF EXECUTION OF THE REPUBLICAN BUDGET OF THE REPUBLIC OF KAZAKHSTAN

of March 31, 2016 No. 5-HK

About approval of procedural standards of external state audit and financial control

(as amended on 03-09-2021)

According to the subitem 2) of Item 2 of article 8 of the Law of the Republic of Kazakhstan of November 12, 2015 "About the state audit and financial control" the Calculating committee on control of execution of the republican budget (further - Calculating committee) DECIDES:

1. Approve:

1) 100. The procedural standard of external state audit and financial control on carrying out audit of efficiency according to appendix 1 to this normative resolution;

2) 200. The procedural standard of external state audit and financial control on carrying out compliance audit according to appendix 2 to this normative resolution;

3) 600. The procedural standard of external state audit and financial control on involvement of auditing organizations and experts to carrying out the state audit and expert and analytical actions according to appendix 3 to this normative resolution;

4) 700. The procedural standard of external state audit and financial control on recognition of results of the state audit according to appendix 4 to this normative resolution;

5) 750. The procedural standard of external state audit and financial control on quality control by bodies of external state audit and financial control according to appendix 5 to this normative resolution;

6) 900. The procedural standard of external state audit and financial control on implementation of the current assessment of execution republican and local budgets according to appendix 6 to this normative resolution;

7) 901. The procedural standard of external state audit and financial control on implementation of subsequent assessment of execution of the republican budget according to appendix 7 to this normative resolution;

8) 902. The procedural standard of external state audit and financial control on representation by audit committees of areas, cities of republican value, the capital of the performance report of the local budget to maslikhats according to appendix 8 to this normative resolution;

9) 1000. The procedural standard of external state audit and financial control on representation by audit committees of areas, cities of republican value, the capital to Calculating committee on control of execution of the republican budget of information on the work according to appendix 9 to this normative resolution;

10) 1001. The procedural standard of external state audit and financial control on evaluating activities of bodies of the state audit and financial control according to appendix 10 to this normative resolution;

11) 903. The procedural standard of external state audit and financial control on holding expert and analytical action by bodies of external state audit and financial control according to appendix 11 to this normative resolution.

12) 300. The procedural standard of external state audit and financial control on carrying out financial records audit according to appendix 12 to this normative resolution.

2. To provide to legal department in the procedure established by the legislation:

1) state registration of this normative resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days after state registration of this normative resolution in the Ministry of Justice of the Republic of Kazakhstan its direction on official publication in periodic printing editions and in information system of law of Ad_let;

3) within five working days from the date of receipt of this normative resolution in the Ministry of Justice of the Republic of Kazakhstan its direction in the Republican state company on the right of economic maintaining "The republican center of legal information of the Ministry of Justice of the Republic of Kazakhstan" for placement in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

4) placement of this normative resolution on Internet resource of Calculating committee.

3. To impose control of execution of this normative resolution on the chief of staff of Calculating committee.

4. This normative resolution becomes effective after ten calendar days after day of its first official publication.

Chairman of Calculating committee on control of execution of the republican budget

K. Dzhanburchin

Appendix 1

to the Normative Resolution of Calculating committee on control of execution of the republican budget of the Republic of Kazakhstan of March 31, 2016 No. 5-HK

100. The procedural standard of external state audit and financial control on carrying out audit of efficiency

Chapter 1. General provisions

1. This Procedural standard of external state audit and financial control (further - the Standard) determines the purpose, tasks, criteria and procedures of audit of efficiency performed by bodies of external state audit and financial control by carrying out audit of efficiency (further - bodies of audit).

2. The main objective of the Standard is ensuring creation of the report with audit committee which on the content is the conclusion to the corresponding report of local executive body of area, city of republican value, the capital, area (city of regional value), the cities of district value, the village, the settlement, the rural district (further – the annual statement of local executive body) regarding reliability and completeness of data in the annual statement of local executive body on financial position, financial transactions, results of activities of state bodies, asset managements of the state, and also compliance to requirements of the legislation of the Republic of Kazakhstan.

3. Basis for report generation are the annual statement of local executive body for accounting financial year and the monthly performance reports of the local budget submitted in audit committee by the relevant local executive body and local authorized body on budget implementation according to Items 3 and 4 of Article 125, the subitem 1) of item 4 Articles 129, of 131, of 131-1 Budget code of the Republic of Kazakhstan of December 4, 2008, and also results of auditor actions of audit committee, reports of administrators of local budget programs, information of local executive body and the subjects of the quasi-public sector provided at the request of audit committee, statistical data about results of development of the corresponding administrative and territorial unit (further – the region) for the corresponding financial year and data of law enforcement agencies.

4. Audit of efficiency is booked regarding ensuring with objects the state audit and financial control (further - objects of the state audit) effective activities for management of national resource.

5. Action of this Standard extend to statutory auditors and experts (auditing organizations, specialists of state bodies and other legal, physical persons involved by bodies of audit in carrying out the state audit on the corresponding profile).

6. In this Standard the following concepts are used:

1) proper nature of the auditor proof - quality evaluation of auditor proofs, their relevance and reliability in case of confirmation of conclusions and the conclusions on which the auditor opinion is based;

2) criteria - reasonable and achievable reference regulations, indicators (standards and (or) good practicians) based on which efficiency of functioning of the studied direction of audit of efficiency or activities of object of the state audit is estimated;

3) basic criteria - indicators (efficiency, profitability, effectiveness and productivity) used when carrying out all types of audit of efficiency regardless of its directions and activities of object of the state audit;

4) special criteria - the disaggregated indicators developed and used for audit of efficiency depending on features of its directions and activities of object of the state audit;

5) auditor documentation - documents in which the performed audit procedures, the obtained auditor evidence, conclusions, recommendations of the statutory auditor and the achieved results of audit of efficiency are reflected;

6) professional judgment and scepticism - the point of view of the statutory auditor based on its knowledge, qualification and work experience which forms the basis for adoption of subjective decisions by it in circumstances when to determine procedure for its actions is not represented possible.

7. Direct result of the audit of efficiency booked by bodies of audit is preparation of high-quality audit opinion, and resulting effect - achievement of positive effect in the studied direction of audit of efficiency or activities of object of the state audit by results of execution of recommendations.

8. Direct and final results are achievable on condition of collection of proper nature of auditor proofs and expression of opinion in audit opinion concerning improvement of performance indicators in the studied direction of audit of efficiency or activities of object of the state audit.

Chapter 2. Purpose, main objectives and stages of audit of efficiency

9. The purpose of audit of efficiency is expression of independent, authoritative and objective opinion concerning economy, efficiency and effectiveness (productivity) in the studied direction of audit of efficiency or activities of object of the state audit with submission of recommendations about its enhancement.

10. Tasks of audit of efficiency are:

1) determination of hot topic and criteria of audit of efficiency;

2) collection of sufficient and reliable auditor evidences, concerning achievement of criteria of efficiency, identification of the reasons of their variation (in the presence);

3) forming of the independent, objective and competent audit report and conclusion, if necessary with development of recommendations about elimination of the revealed shortcomings and violations and to their non-admission in the future, and also on improvement and increase in efficiency in the studied direction of audit of efficiency or activities of object of the state audit;

4) realization of results of audit of efficiency by means of carrying out post-audit.

11. Audit of efficiency according to competences of bodies of audit begins with forming of the list of objects of the state audit and is performed on the stages provided by the Rules of carrying out external state audit and financial control approved by the normative resolution of Calculating committee on control of execution of the republican budget of July 30, 2020 No. 6-HK (it is registered in the Register of state registration of regulatory legal acts No. 21070) (further - Rules).

Chapter 3. Classification of audit of efficiency and basis of materiality

12. Classification of audit of efficiency by types is used for planning of audits, regulation of its scale, terms and amount of audit, analytical procedures, and also forming of the systematized database of audits of efficiency.

13. Classification of types of audit of efficiency is divided by the following signs:

approaches of the state audit (carrying out audits of efficiency using horizontal or vertical approaches);

the directions of the state audit (carrying out audit on certain subject or activities of object of the state audit).

14. Carrying out audits of efficiency using:

1) horizontal approach is assumed by holding auditor actions on several objects of the state audit which belong to one level of public administration. Horizontal audits of efficiency are booked in the directions of the state audit, except for activities of object of the state audit. Within one auditor action certain activity of several objects of the state audit is studied.

2) vertical approach is assumed by holding auditor actions on several objects of the state audit which belong to different levels of public administration. This type of audit is carried out in all directions of the state audit, except for activities of object of the state audit. Within one auditor action activities of several objects of the state audit belonging to different levels of public administration are studied.

15. Carrying out audit of efficiency in the directions:

1) tax and customs administration - assumes studying and (or) possession of understanding of the state tax and customs policy - from stage of initiation of tax and customs reforms to stage of their practical realization and achievement of the corresponding straight lines and resulting effects. Statutory auditors and experts shall be informed regarding the laws, the politician, governed also the practician of tax and customs administration (measures for aggregation of profitable sources of the republican or local budget (the government budget - for carrying out audits of efficiency on vertical approach), the state functions and rendering the state services, necessary for accomplishment);

2) planning and execution of budgets - assumes studying and (or) possession of the understanding of requirements of budget and other connected legislation and the applied practice on planning of the republican or local budget (the government budget - for carrying out audits of efficiency on vertical approach) in all respects the budget grouped in budget classification and in administrators of the budget programs; and also on execution of the republican or local budget (the government budget - for carrying out audits of efficiency on vertical approach) authorized state bodies and administrators of the budget programs. Statutory auditors and experts shall be informed regarding the laws, the politician, governed also the practician of budgeting, distribution of competences, powers and responsibility between all participants of the budget process;

3) asset management of the state - assumes studying and (or) possession of understanding of the requirements of the legislation determining the principles and procedure for asset management of the state - from accumulation of assets of the state, rules on recognition, accounting and asset retirement to the practician of use of the state assets by all persons who is given the property right, right to use and the right of the order assets of the state. Statutory auditors and experts shall be informed in part the politician, also the practician of asset management of the state governed, the applied users of assets of the state, and also procedure for distribution of competences, powers and responsibility between all participants of process of management of the state assets;

4) implementation of documents of System of state planning - assumes studying and (or) possession of understanding of requirements of the legislation regarding the state planning establishing the principles and rules of forming, approval and implementation of documents of System of state planning. Statutory auditors and experts shall be informed in part the politician, also the practician on implementation of documents of System of state planning, and also distribution of competences, powers and responsibility in System of state planning governed;

5) pricing and purchases in public sector - assumes studying and (or) possession of understanding of requirements of the legislation and provisions of methodological documents based on which the prices are determined: on the goods made and (or) which are purchased and (or) realized in public sector for the works performed in public sector on the services rendered in public sector.

In this direction studying and (or) possession of understanding of requirements of the legislation regulating each stage of public procurements - planning and carrying out purchases, carrying out settlement between the customer and the supplier, control and supervision of work progress within the state order, acceptance of goods, works and services, settlement of disagreements is important. Statutory auditors and experts shall be informed regarding the goods prices applied the practician by determination, work and service in public sector, on distribution of competences, powers and responsibility in system of pricing and purchases of public sector;

6) national debt management - assumes studying and (or) possession of understanding of requirements of the legislation regulating questions of national debt management including rules on implementation of borrowings, determination of need for borrowings, acceptance of the conditions and obligations following from loan agreements, to debt repayment and other aspects of national debt management. For carrying out audit of efficiency in this direction special knowledge and skills are required. Statutory auditors and experts shall be informed regarding applied by state bodies, the given authority on debt management, the practician on implementation of borrowings and accomplishment of the connected obligations, other persons given the right of implementation of the borrowings guaranteed by the state and also distribution of responsibility in management system public debt;

7) use of grants, investments, loans and other connected assets - assumes studying and (or) possession of understanding of requirements of the legislation regulating questions of reasons, coordination and representation to participants of the budget process of grants, investments, loans and other connected assets. Statutory auditors and experts shall be informed in part the practician of use of grants, investments, loans and other connected assets by users of these assets, and also to distribution of competences, powers and responsibility of the involved persons;

8) the sphere of environmental protection - assumes studying and (or) possession of understanding of requirements of the legislation regulating questions of environmental protection. For carrying out audit of efficiency in this direction special knowledge and skills are required. In amendment, in this direction studying and (or) possession of understanding of determination and realization of state policy on ensuring sustainable development, and also the corresponding international treaties and conventions is important. Statutory auditors and experts shall be informed regarding applied the politician and the practician on environmental protection and sustainable development by the authorized bodies all by the involved legal entities and physical persons, and also distributions of competences, powers and responsibility in the sphere of environmental protection;

9) the sphere of information technologies - assumes studying and (or) possession of understanding of requirements of the legislation, the methodological and technical documents determining rules of use of information technologies in the state and quasi-public sectors. For carrying out audit of efficiency in this direction special knowledge and skills are required. Statutory auditors and experts shall be informed regarding applied the politician and the practician on initiation, development, implementation, maintenance and updating of information technologies by users of these technologies, and also distributions of competences, powers and responsibility in the sphere of information technology management;

10) activities of object of the state audit - assume studying and (or) possession of understanding of requirements of the legislation regulating activities of object of the state audit including internal (local) documents. Statutory auditors and experts shall be informed regarding the applied the politician and the practician of implementation by object of the state audit the main and other types of activity, and also the accepted distribution of competences, powers and responsibility in the organization.

16. At each stage of audit of efficiency determination of materiality requires professional judgment of statutory auditors taking into account interests of users of audit opinion.

17. Materiality level for the purposes of audit of efficiency is determined on the basis of financial performance. When implementing audit of efficiency aspects of the non-financial importance of the studied direction of audit and (or) activities of object of the state audit which are not connected are considered or directly are not connected with questions of financing.

18. The importance represents the indicator of measurement of importance of influence of area of public administration and (or) activities of object of the state audit on external environment of its functioning. The received result on the importance is the main information which exerts impact on the made social and economic and political decisions, and is subject of professional judgment.

Chapter 4. Forming of the perspective plan

19. Process of advance planning of audit of efficiency (further - the Perspective plan) consists of the following interconnected stages:

studying of system of public administration;

determination of the directions of the state audit;

determination, reasons and ranging of perspective subjects of audit of efficiency.

20. The main objectives when forming the Perspective plan are:

1) reasons and realization of powers of bodies of audit on carrying out audit of efficiency properly;

2) determination of subjects and (or) objects of the state audit for carrying out audit of efficiency for the three-year period and the forthcoming year;

3) the timely solution of questions on resource ensuring the planned efficiency audit, including training of statutory auditors and matching of experts, and also holding actions for decrease in audit risk;

4) creation of basis for high-quality planning of auditor actions, including by means of determination of strategy for collection of necessary information and determination of methods of holding auditor actions;

5) strengthening of transparency, publicity and accountability of activities of body of audit.

21. Subject of audit of the efficiency included in the Perspective plan of body of audit is the formulation of problem or question on which the planned auditor action will be focused subsequently. When carrying out audit of efficiency of activities of object of the state audit the subject of audit of efficiency determines the corresponding function, the sphere or sphere of activity of this object of the state audit.

22. Determination of subject of audit of efficiency is performed based on the following criteria:

1) relevance, the social and economic importance of the problem existing in system of public administration;

2) financial materiality which assumes consolidation of considerable amount of financial resources and assets of the state for achievement of particular purposes;

3) potential pecuniary and non-financial benefits from efficiency audit;

4) possibility of management of audit risks;

5) interest of users of audit opinion.

23. When ranging subjects of audit of efficiency on priority assessment of criteria of determination of hot topic of audit of efficiency in form according to appendix 1 to this Standard is carried out.

24. Based on ball assessment preliminary terms of carrying out the initiated audits of efficiency for inclusion in the list of objects of the state audit of body of audit are determined by relevance and priority of subject of audit of efficiency.

25. For initiation of carrying out audit of efficiency by the structural division responsible for carrying out the state audit in coordination with the member of Calculating committee or audit committee of area, the cities of republican value, the capital (further - audit committee), responsible for carrying out audit of efficiency, the reference reasons of carrying out audit of efficiency in form according to appendix 2 to this Standard is constituted on each subject of audit of efficiency.

26. The reference reasons of carrying out audit of efficiency is constituted in short form (no more than one page) and it is represented in the division of body of audit responsible for planning for forming of the draft of the Perspective plan and the list of objects of the state audit.

27. For the purpose of effective use of resources of body of audit and collection of necessary information coordination of audit of efficiency with other types of audits by means of determination of the connected auditor questions and their inclusion in the program of the corresponding audit is performed.

Chapter 5. Procedures of planning and holding auditor action

Paragraph 1. Preliminary studying

28. The main objectives of stage of preliminary studying and planning of auditor action is the efficiency audit subject specification, development and (or) determination of criteria (based on the purpose, questions of audit), approaches, methods, risk management methods.

In case of determination of methods of carrying out audit (the analysis, comparison, assessment, check, inspection, auditor selection, the extent of importance and others) efficiency the possibility of application of one or combination of several methods, including the comparative analysis, selective research is considered.

29. The studying of the direction of audit of efficiency or activities of object of the state audit which is carried out at stage of preliminary studying and planning of auditor action is continuation of analytical procedures which were carried out at stage of advance planning. At this stage process of studying is most disaggregated and focused on certain aspects of the direction of the state audit or activities of object of the state audit depending on certain subject of auditor action and is aimed at plan development and programs of audit.

30. One of key analytical procedures of stage of preliminary studying and planning of auditor action is assessment of audit risk (possibility of approach of certain event, action or failure to act which will influence goal achievement of auditor action negative or positively). The risks assessment is carried out by the methods allowing to concentrate efforts of audit of efficiency on key zones of risk, to reduce excessive audit procedures and most productively to use the available resources.

31. Basic provisions of planning of auditor action and procedure for its carrying out are determined by Rules.

Paragraph 2. Determination of the purpose and questions of audit of efficiency

32. For each auditor action the concretized purposes are determined. In case of determination of the purpose of auditor action the following requirements are observed:

the importance of the purpose of audit (focus on essential positive influences of audit on the studied direction of audit of efficiency and (or) activities of object of the state audit);

ensuring accurate logical relationship of the purpose of audit with the direction of audit of efficiency, audit subject studied by the period and scale of audit;

ensuring approachibility of the purpose within the planned auditor action;

providing the acceptable detail level of the purpose for exception of carrying out excessive audit and analytical procedures;

inadmissibility of application of indistinct and ambiguous expressions.

33. The purpose of auditor action is formulated on the basis of subject of audit of efficiency which is determined at stage of advance planning or changed to efficiency audit planning stages (preliminary studying).

34. The purpose of auditor action is formulated so that the importance of audit of efficiency, its focus on zones of risk and positive impact on functioning of the direction of audit of efficiency and (or) activities of object of the state audit was accurately traced.

35. The purpose of auditor action is determined by two methods:

the formulation in the form of question (basic auditor question);

in the form of the thesis description of problem which will be studied during auditor action.

36. In case of development of auditor questions the following major factors are considered:

logical relationship of auditor question with subject and the purpose of auditor action;

focus of auditor questions on the results achieved in the direction of audit of efficiency and (or) object of the state audit;

focus of auditor questions on the problems which are available in the direction of audit of efficiency and (or) on object of the state audit;

focus of auditor questions on compliance to criteria of audit of efficiency;

formulation of questions on which answers by means of applicable analytical and audit procedures are given;

exception duplicating in sense and content of questions;

application of neutral and impartial formulations.

Paragraph 3. Types of criteria of audit of efficiency

37. In case of audit of efficiency basic and special criteria are applied to efficiency evaluation of functioning of the studied direction of audit of efficiency and (or) activities of object of the state audit.

38. Within one auditor action two and more basic criteria of audit of efficiency are used. All basic criteria are applied in case of possibility of determination of resulting effects and effect in the studied direction of audit of efficiency. Except basic criteria indicators are determined by availability, degree of risks and availability, condition of internal control.

39. Basic criteria of audit of efficiency are disaggregated depending on the purpose and questions of audit of efficiency. By each basic criterion of audit of efficiency special criteria are determined or developed (on availability and degree of risks, and also availability and condition of internal control).

40. Special criteria consider features of the direction of audit of efficiency and (or) activities of object of the state audit. Special criteria are not applied to other directions of audit of efficiency or objects of the state audit, after determined (more than 2 years) time of their application or specifics of the sphere, sphere of activity or the direction.

41. One of special criteria of audit of efficiency is the prospects indicator intended for determination of compliance of the made expenses to the purposes and tasks set on the designated expected period. The criterion of prospects is used in case of audit of efficiency of planning of the republican budget and implementation of documents of System of state planning of the Republic of Kazakhstan, development strategies and development plans for national managing holdings, national holdings, national companies which shareholder is the state. Determination and (or) development of special criteria are performed with use of information from available and reliable sources.

42. Criteria of audit of efficiency are subdivided on:

1) quantitative (indicators which are measured in the numerical expression allowing to determine the level of achievement of results);

2) high-quality (thesis descriptions of the ideal or desirable state of affairs or timeliness of achievement of results on the direction of audit of efficiency and (or) activities of object of the state audit).

Paragraph 4. Development of criteria of audit of efficiency

43. Development of criteria of audit of efficiency is performed in the course of preliminary studying of objects of the state audit. Possible sources of criteria of audit of efficiency on the basis of which studying their directed elections are held are determined (typical cases are chosen, are in detail studied for clarification of the reason (problems).

44. Each certain and (or) developed criterion of audit of efficiency answers the following characteristics:

applicability (indicators are connected with the purpose and questions of audit);

the acceptability (indicators are approved with requirements of the legislation or opinion of experts);

reliability (indicators allow various statutory auditors to formulate similar conclusions, the conclusions and recommendations under similar circumstances);

objectivity (indicators are not prejudiced and are based on complete and reliable information);

completeness (indicators are sufficient for audit goal achievement);

usefulness (application of indicators will provide identification of the facts based on which conclusions, the conclusions and recommendations about improvements are formulated);

clearness (indicators are formulated accurately and exclude risks of incorrect interpretation).

45. Sources of criteria of audit of efficiency are:

1) the regulatory legal acts regulating functioning of field of the state audit and (or) activities of object of the state audit;

2) decisions of representative and executive bodies;

3) professional, technical and industry standards;

4) regulating and methodological documents of authorized bodies and (or) object of the state audit;

5) methodological documents of the international professional organizations;

6) the indicators of measurement of results approved by authorized bodies and (or) object of the state audit;

7) reporting and statistical data of objects of the state audit, authorized bodies and organizations of quasi-public and private sectors;

8) audit reports of bodies of audit and financial control;

9) audit reports of bodies of internal state audit and financial control;

10) literature on the questions connected with the purpose, subject and questions of audit of efficiency;

11) expert opinions;

12) discoveries and developments;

13) materials of mass media, including placed on Internet resources.

46. The acceptability of certain and (or) developed criteria of audit of efficiency is estimated during all subsequent analytical and audit procedures (before forming of the audit report) with filling of check sheet of assessment of auditor actions for form according to appendix 3 to this Standard.

47. In case of development of criteria of audit of efficiency the following risks are possible:

1) subjectivity - development of criteria, the incomplete, biased information based on application and in the absence of comprehensive study of the checked direction, the sphere (area), including owing to insufficiency of regulatory, methodological base and experience in the checked sphere (area);

2) restrictions in receipt of independent and authoritative expert opinion (lack of independent expert opinion, qualified specialists in this industry, independent highly specialized experts, scientific developments);

3) restrictions of criteria on quantitative and high-quality measurements of the results achieved in the sphere (area) of the state audit or object of the state audit taking into account their specifics;

4) lack of standards in activities of object of the state audit when holding auditor action in the new sphere (area).

48. In case of development of criteria of audit of efficiency the risks specified in Item 47 of this Standard are considered by statutory auditors, but are not the basis for refusal of their development.

In case of complexity of question, the studied direction of audit of efficiency or activities of object of the state audit, determination or development of criteria of audit of efficiency (the approach oriented to problem) at the subsequent stages with obligatory inclusion of the corresponding references in auditor documentation is allowed.

49. The audit and analytical procedures connected with determination or development of criteria of audit of efficiency are reflected in auditor documentation. Sources of criteria of audit, and also cases of disagreements between statutory auditors, officials of object of the state audit, experts, regarding use of criteria of audit of efficiency are without fail documented.

50. Object of the state audit is informed on carrying out the state audit with indication of certain criteria of audit in time, established by Rules.

51. Based on criteria methods of collection and information analysis (auditor proofs), used by statutory auditors for forming of conclusions, recommendations are determined.

52. On the basis of comparison of the actual data characterizing activities of object of the state audit, received in the course of efficiency audit with criteria of audit of efficiency, statutory auditors draw conclusions and the conclusions with the corresponding assessment on condition of provision of the documents of normative nature expected and possible the practician of good management, in case of detection of the facts of violations the lost profit and (or) economic losses is estimated.

Paragraph 5. Risk management

53. At all stages of audit of efficiency the proper risk management of determination and (or) development of criteria of audit of efficiency assuming exception of contradictions between criteria of audit of efficiency, holding analytical procedures for adjustment or replacement of criteria is exercised. The basis for adjustment or replacement of criteria are additional data and the drawn-up properly auditor proofs.

54. For the purpose of ensuring effective management of the risks connected with determination and (or) development of criteria of audit of efficiency, and also their application, the responsible division of body of audit creates the database on criteria of audits of efficiency. At the end of each auditor action the list of criteria of audit of efficiency in form according to appendix 4 to this Standard for its transfer to the database is created.

55. For ensuring proper use of criteria of audit of efficiency statutory auditors constitute project matrix of auditor action for form according to appendix 5 to this Standard. The project matrix of auditor action is the obligatory working file which is created at stage of preliminary studying and is estimated regarding relevance at the subsequent stages of audit (to assessment of realization of results of audit of efficiency). For updating of project matrix changes and additions are made to it.

Paragraph 6. Determination and application of audit approach

56. Depending on the purpose, questions and criteria of audit of efficiency the group of the state audit chooses one of three main approaches to carrying out audit of efficiency or combines the specified approaches:

1) the system oriented approach which researches proper functioning of management systems;

2) the approach oriented to result which estimates whether the planned straight lines and resulting effects are achieved;

3) problem-oriented approach according to which the reasons and consequences of certain problem are analyzed.

57. The system oriented approach is difficult and labor-consuming approach of carrying out audit of efficiency by results of which recommendations about enhancement of management system in the studied area are made. In case of this approach are without fail studied and estimated policy and practicians of all members of the respective area of public administration.

58. Application of the approach oriented to result assumes determination and carrying out analytical and audit procedures which are directed to assessment of results which were achieved in the direction of audit of efficiency and (or) object of the state audit. This approach is acceptable for application in the directions of audit of efficiency in which are approved and proper indicators of measurement of results are used, or there is high probability of possibility of development of proper criteria of audit.

59. When holding auditor action using problem-oriented approach, all analytical and audit procedures are focused on certain problem of the studied direction of audit of efficiency and (or) activities of object of the state audit. Application of this approach assumes determination of problem, its reasons and consequences. This approach is acceptable for application in the directions of audit of efficiency by which the problem, solvable with the assistance of statutory auditors is determined.

60. On the basis of the chosen approach of audit for the purpose of proper structuring the subsequent analytical and audit procedures by statutory auditors the scale of the planned auditor action providing development of auditor questions, determination of participants in the studied direction of audit of efficiency and (or) objects of the state audit and also geographical parameters (location of objects of the state audit) and the studied time period is determined.

Paragraph 7. Methods of collection of auditor proofs

61. Statutory auditors at stage of holding auditor action provide compliance of auditor proofs to the requirements determined in Rules.

62. The interview (interview), polls, reviews of documents, inspection, observation and focus group belong to methods of collection of the auditor proofs necessary for forming of the audit report of efficiency.

63. The interview (interview) is one of key methods for the purposes of the planned audit of efficiency and is performed at stages:

preliminary studying and planning of audit of efficiency - for understanding of features of functioning of area of public administration (the direction of audit of efficiency) and creation of high-quality planning documents;

carrying out audit of efficiency - for the purpose of collection of auditor proofs;

creation of the audit report - for the purpose of forming of competent and objective conclusions, the conclusions and recommendations;

realization of results of auditor action - for the purpose of providing objective assessment of accomplishment of recommendations of body of audit from object of the state audit and so on.

64. For ensuring collection of complete and reliable information using interviewing method statutory auditors follow the following instructions:

1) development of the instruction sheet for holding interview in form according to appendix 6 to this Standard;

2) planning of date, time and duration of each interview;

3) determination of the participant list of interview;

4) creation of the approximate list of questions, applying the method "from simple question to difficult question";

5) holding interview, showing the valid, attentive, sympathizing and objective attitude towards the interlocutor;

6) conducting record or recording of interview.

65. The method of poll assumes the systematized information collection by means of distribution of questionnaires to certain national group. The questionnaire is the main tools of information collection used in case of polls.

66. For ensuring collection of complete and reliable information using method of polls statutory auditors follow the following instructions:

1) the questionnaire begins with general questions and includes test questions (that is, questions with possible answers) and open questions (that is, the questions assuming obtaining from respondents of the developed answers or comments);

2) the optimum list of questions, the including only those questions, answers to which need to be used for the subsequent analysis, is created;

3) use exception in the questionnaire of excessive quantity of open questions;

4) questions are formulated accurately, clearly, consistently and are guided by receipt of one answer;

5) the questionnaire includes the short and clear instruction for filling;

6) survey before distribution of the questionnaire is conducted in the test mode according to the instruction sheet on holding poll in form according to appendix 7 to this Standard.

67. The method of the overview of documents assumes information collection by means of studying of contents of documents of objects of the state audit and other organizations of the public, quasi-public sector which activities are connected with activities of object of the state audit.

68. For ensuring collection of complete and reliable information using method of the overview of documents statutory auditors and experts follow the following instructions:

1) the list of documents which shall be studied is determined;

2) the list of the studied documents includes documents which are enacted, and also documents which voided or project document revisions;

3) the studied documents (reporting data or financial records, are checked regarding reliability and reliability of information which contains in data of the document);

4) the working file (check sheets) with inclusion of descriptions of provisions of documents and (or) references to these documents which are used for the subsequent analytical and audit procedures is created.

69. The method of inspection assumes conducting checks concerning documents, assets or certain internal processes which are carried out on object of the state audit. When conducting inspection statutory auditors and experts use the approaches applied in case of audits on compliance and financial records audits. Inspection is carried out for collection of the auditor proofs used when forming the audit report concerning economy, efficiency and effectiveness of the studied aspects of activities of object of the state audit.

70. The method of observation assumes participation of statutory auditors in observation of people, assets and events.

71. For ensuring collection of complete and reliable information using observation method statutory auditors and experts follow the following instructions:

1) the short instruction sheet on carrying out observation is developed;

2) the observation subject requiring special attention for goal achievement of the planned auditor action is determined;

3) the most suitable time for carrying out observations is determined;

4) all participants of observation are notified that the purpose of observation is not estimation of results of work of participants;

5) the restrictions connected with carrying out observation are taken into account;

6) documentation on results of the made observation is drawn up.

72. The focus group method - assumes information collection method by means of the organization of discussions and interaction between members of focus group (physical persons) who are members of the respective area of public administration determined by the direction of audit of efficiency on the problem studied within the planned auditor action.

73. For ensuring collection of complete and reliable information using method focus group statutory auditors follow the following instructions:

1) it is determined conducting focus groups;

2) the instruction sheet is developed for the leader of focus group, additional instructing in behavior of the leader is carried out;

3) the structure of focus group is determined (the physical persons equal by the status and having similar experience) and the comfortable (working) atmosphere for open and confidential communication will be organized;

4) date, time and duration of meeting of members of focus group is planned (the recommended duration of meeting - no more than two hours);

5) entries are made or results of discussions of focus group in compliance by the instruction sheet for carrying out discussion with focus group on form according to appendix 8 to this Standard are recorded.

Paragraph 8. Systematization of the elicited facts for creation of the audit report and the conclusion

74. Auditor documentation is constituted in detail that other statutory auditor who does not have preliminary data on results of the state audit (or during quality control), could estimate:

1) communication between questions, criteria, scale of the state audit, risks assessment, the Plan, the Program of audit and audit engagements on holding auditor action, terms, amount and results of the performed audit procedures;

2) the auditor proofs confirming audit opinion or opinion of the statutory auditor;

3) reasons which required application of professional judgment;

4) corresponding conclusions and recommendations of the state audit.

75. Statutory auditors elicit the facts characterizing the real situation of the studied direction of audit of efficiency and (or) activities of object of the state audit regarding compliance to criteria of audit of efficiency.

76. Each elicited fact is confirmed by reliable and sufficient auditor evidences. Auditor proofs can be physical, documentary and analytical.

77. And with the assistance of experts all elicited facts are systematized by statutory auditors by means of carrying out joint discussions in the way:

1) rangings of the elicited facts on importance and the importance;

2) clarifications of the facts which are fragmentary case or representing sign of system problem;

3) clarifications of awareness of management of object of the state audit on the revealed system problems and determinations of need of participation of other parties in elimination of the revealed shortcomings and implementation of recommendations about improvements;

4) determinations of the reason and influence of the elicited facts on efficiency of the direction of audit of efficiency or activities of object of the state audit.

78. The facts elicited when carrying out audit of efficiency are certificates:

1) good practice (there are positive deviances of the actual values characterizing the field of the state audit or activities of object of the state audit from criteria of audit of efficiency);

2) proper practice (the actual values characterizing the field of the state audit or activities of object of the state audit correspond to criteria of audit of efficiency);

3) negative practice (there are variations for the worse of the actual values characterizing area of the direction of audit of efficiency or activities of object of the state audit from criteria of audit of efficiency).

79. The audit report is prepared taking into account discussions with representatives of object of the state audit and (or) other organizations involved in management of activities of object of the state audit.

80. The audit report constituted following the results of auditor action contains:

assessment of the studied direction of audit of efficiency and (or) activities of object of the state audit regarding compliance to criteria of audit of efficiency;

references to the corresponding auditor documentation;

laconic answers to all questions of audit of efficiency;

auditor opinion regarding the reasons and (or) consequences of variation from criteria.

The procedure for creation and execution of the audit report is determined by Rules.

81. The procedure for creation, registration of audit opinion and instructions, and also implementation of monitoring of execution of recommendations is determined by Rules.

82. The efficiency audit results provided in audit opinion are implemented by means of:

1) implementation on permanent and system basis of the actions provided in Rules, the structural division responsible for carrying out the state audit together with the member of Calculating committee or audit committee responsible for control of execution of the recommendations made in audit opinion and directed for obligatory execution of instructions;

2) inclusions in the Program of audit of efficiency of other auditor action of audit and analytical procedures for accomplishment check by object of the state audit of recommendations;

3) holding auditor action for collection of auditor proofs for the purpose of confirmation of proper accomplishment by object of the state audit of recommendations.

Appendix 1

to the Procedural standard of external state audit and financial control on carrying out audit of efficiency

form

Assessment of criteria of determination of hot topic of audit of efficiency

Name of criterion *

Maximum value of assessment (ball)

Minimum value of assessment (ball)

1.

Relevance, social and economic importance

 

 

2.

Financial materiality

 

 

3.

Efficiency audit influence

 

 

4.

Management of audit risks

 

 

5.

Interest of users of audit reports

 

 

 

Final assessment

 

 

Note:

* All initiated subjects of audit of efficiency are estimated by each criterion. Based on final estimates priority of subjects is determined.

The audit subject with the maximum value of ball assessment is recognized to the most priority, with the minimum value of ball assessment - the least priority.

Appendix 2

to the Procedural standard of external state audit and financial control on carrying out audit of efficiency

form

Reference reasons of carrying out audit of efficiency

________________________

(Full name (in case of its availability), position) *

"___" ___________ ______ of year

Subject of the initiated efficiency audit: ___________________________

Direction of the state audit: ________________________________

The short description of system problem or question on which audit will be focused:

__________________________________________________________________

__________________________________________________________________

Ball assessment on priority: __________________________________

Determination of preliminary terms (in what year carrying out the initiated efficiency audit is necessary):

_________________________________________________________________

The expected results: ____________________________________________

_________________________________________________________________

Note:

* The official of body of external state audit to whom the reference reasons of carrying out audit of efficiency is submitted

_________________________________________________________________

Official of body

external state audit ____________________ (the signature, full name (in case of its availability)

Appendix 3

to the Procedural standard of external state audit and financial control on carrying out audit of efficiency

form

Check sheet of quality evaluation of auditor proofs

Question

Answer "Yes"

Answer "No"

Explanations (note)

1.

Whether auditor proofs concerning all auditor questions and (or) the used audit indicators were collected?

 

 

 

2.

Whether collected auditor proofs were estimated regarding compliance to requirements on:

 

 

 

2.1.

acceptability

 

 

 

2.2.

justification (argumentativeness)

 

 

 

2.3.

reliability

 

 

 

2.4.

sufficiency

 

 

 

3.

Whether procedures for determination of the need for collection of corroborating auditor evidences were carried out?

 

 

 

3.1.

Whether if yes, that procedures for collection of corroborating auditor evidences properly were carried out?

 

 

 

4.

Whether consultations with experts regarding compliance of collected auditor proofs to requirements were held (Items 2.1.-2.4.)?

 

 

 

4.1.

Whether if yes, that confirmations were received from experts regarding justification of the used auditor proofs?

 

 

 

5.

Whether discussions with representatives of object of the state audit on collected auditor proofs were carried out?

 

 

 

5.1.

Whether if yes, that confirmations were received from representatives of object of the state audit regarding justification of the used auditor proofs?

 

 

 

Head

groups of audit of efficiency ____________________ (the signature, full name (in case of its availability)

Appendix 4

to the Procedural standard of external state audit and financial control on carrying out audit of efficiency

form

List of criteria of auditor action

1.

Efficiency audit subject:

 

2.

Efficiency audit purpose:

 

3.

Objects of audit of efficiency:

 

4.

Efficiency audit scale:

 

5.

Questions of audit of efficiency:

 

6.

Basic criteria:

 

6.1.

 

 

6.2.

 

 

7.

Special criteria:

 

7.1.

 

 

7.2.

 

 

Head

groups of audit of efficiency ____________________ (the signature, full name (in case of its availability)

Appendix 5

to the Procedural standard of external state audit and financial control on carrying out audit of efficiency

form

Project matrix of auditor action

Efficiency audit subject:

Efficiency audit purpose:

Auditor question 1.

criteria

Information source

Risks

Approaches

Methods of information collection (proof)

The expected conclusion

1.1.

 

 

 

 

 

Auditor question 2.

criteria

Information source

Risks

Approaches

Methods of information collection (proof)

The expected conclusion

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