What are International Standards of Supreme Audit Institutions (ISSAI), and what is their purpose?
The ISSAIs are the authoritative international standards on public sector auditing. ISSAIs represent mandatory auditing standards for the SAIs to claim adherence to the standards. In the IFPP, they occupy the second level of pronouncements
The ISSAIs comprise of:
- The basic set of concepts and principles that define public sector auditing and the different types of engagements supported by the ISSAIs.
- The fundamental principles which INTOSAI have defined as universally applicable professional standards. The auditing practices of all SAIs as well as any national standards for public sector auditing should be aligned to these.
- The organizational level requirements which the SAI and the engagement level requirements which the auditor must comply with if they state compliance with the ISSAIs (rather than national standards)Application material that is relevant to ensure that the fundamental principles and requirements are understood and applied as relevant in the circumstances of the individual engagement.
Purpose of the ISSAIs is to:
Ensure the quality of the audits conducted.
Strengthen the credibility of the audit reports for users.
Enhance transparency of the audit process.
Specify the auditor’s responsibility in relation to the other parties involved.
Define the different types of audit engagements and the related set of concepts that provide a common language for public sector auditing.
ISSAI 100 ‘The Fundamental Principles of Public Sector Auditing’ operationalizes the INTOSAI principles into standards at both the organizational level and at the engagement level. ISSAI 100 defines the authority of the ISSAIs and defines how an auditor can claim ISSAI compliance in an audit report.