Katalin Jakovác – László Domokos – Erzsébet Németh
Supreme audit institutions (SAIs) must conduct their audits where and when this is most needed, and where the greatest added value is generated. In line with the principles of good governance, when planning audits, in addition to risk analysis results, SAIs ideally also take social expectations into account. The support of good governance is treated as a priority, moreover, the audit focus of SAIs is also impacted by the focus of public management.
The aim of this study is to present the selection methodology supporting audit planning, as well as the characteristics of risk analysis through international examples. The study first presents the key phases and features of the planning processes of supreme audit institutions, while also pointing out how planning can support good governance. Planning comprises several interrelated phases, including the selection of audited areas, the definition of methodology, the preparation of audit programmes and resource planning. In line with the requirements of international standards, SAIs apply risk analysis in the various phases of planning. This section will also present a new trend, namely social participation.
According to its Strategy adopted by the Hungarian National Assembly, the State Audit Office of Hungary (SAO) considers as its mission to promote the transparent and sound management of public finances with its value creating audits performed on a solid professional basis, and thus to contribute to good governance. The goal of the SAO’s audits is to provide well-founded, professional and objective answers with regard to current economic and social problems, by focusing on appropriate issues at the appropriate time. For this purpose, the SAO renewed its planning system from 2011. The second part of the study presents the planning processes of the State Audit Office, developed on the basis of international standards. In order for the audits of the State Audit Office to support good governance to the greatest possible extent, the various planning phases have a hierarchic structure and rely heavily on information from the organisation’s risk database.