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1864 - 2014 150 years of existence

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The Romanian Court of Accounts’Good Practices in Application of INTOSAI

GOVs

Svetlana MuresanSvetlana Muresan

external public auditor

RCoA

Meeting of the INTOSAI Subcommittee on Internal Control Standards

27-28 May 2014, Vilnius, Lithuania

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Agenda

1. The activity of the RCoA

2. The audit standards of RCoA

3. The implementation of the INTOSAI GOVs

4. Good practices

5. Collaboration with institutions and professional organizations

6. Conclusions

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Performance Audit

Financial Audit

Compliance Audit

External public audit of EU funds

Member of the European Court of

Auditors

Gives advisory opinions

International cooperationReporting

Activity of the RCoA

Monitory actions to comply with the

measures set

Documentary actions

upon request by the Senate or by the Chamber of Deputies, on

the state budget draft;

draft laws in the field of public finances and accounting;

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SECONDARY LEGISLATIONSECONDARY LEGISLATION

The Audit Standards of the RCoA

The Constitution of Romania

(art. 140)

Law no. 94/1992

on the organization and operation of the

Court of Accounts

The Audit Standards of the RCoA

GUIDELINES for the audit of internal control and internal audit functions;

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The Implementation of the INTOSAI GOVs

In March 2011 a Guidelines for the assessment of public entities internal control system was issued by the professional staff of the RCoA and made available to all external auditors in the form of a brochure; it was also posted on the website.

The INTOSAI Guidance for Good Governance (INTOSAI GOV 9100 - 9150) translated into Romanian was incorporated in this brochure and also posted on the website.

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For the purpose of promoting good governance, public internal financial control was implemented in the public sector and includes:

internal/managerial control system; internal audit; centralised coordination and harmonisation of the two

components above.

The concept of Public Internal Control in Romania

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GOOD PRACTICES

The RCoA made proposals for legislative improvement in the field of internal control and internal audit in the public sector (CHU) .

Submitted to the Romanian Parliament and recently embodied in the changes of normative acts.

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Some changes:Training and certification for internal auditors

- Internal auditors have the obligation to obtain a national certification, within five years from the entry into force of the law. The national system for the certification of internal auditors, administered by the CHU PIA, is based on the recognition of the competences, capabilities and values acquired by the auditors during their basic training and lifelong professional training, within the nationally acknowledged higher education institutions, in accordance with the ‘Competence framework of public sector internal auditors’, as approved by the Public Internal Audit Committee (PIAC).

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Public Internal Audit Committee (PIAC)

In Romania, the PIAC operates, in accordance with law, as a consultative body organised under the CHU PIA (MoPF) that carries out actions with a view to defining the strategy and improving the public internal audit activity in the public sector.

The law provides for the establishment, at the level of those main authorising institutions within the public central administration that have an annual budget exceeding RON 2 billion, of audit committees made up of three to seven members, with tasks similar to those of the PIAC within the MoPF.

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The relationship between public internal audit and public external audit

The RCoA is in charge of the external evaluation of the public internal audit activity of the verified legal persons. The opportunities for cooperation and collaboration between public internal audit and external audit are valorised through a protocol concluded between the AAIR and the RCoA.

While safeguarding the independence and objectivity of the public internal audit and external audit, the protocol regulates the relations between the two institutions according to the complementarity principle with regard to increasing the efficiency of the audit activity, aligning the methodological framework, ensuring the professional training of the auditors and exchanging information.

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SOME ACHIEVMENTS

1. Development of a Questionnaire for external public auditors to asses the internal audit activity regarding:- independence, - human resources sufficiency activities,- competence,- recommendations etc.

2. Regular meetings/workshops between experts of RCoA, AAIR and MoF in order to harmonize the views or identifying solutions to issues/difficulties in internal control (at least quarterly).

The results of these workshops will result in the issuance of some clarifications regarding the application of internal control standards.

3. Regular exchanges of experience between internal and external auditors on techniques, methods and tools used in audit missions on similar themes.

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Some internal regulations reviewedfor the implementation of the INTOSAI GOVs in

the activity of the RCoA

The Code of Ethics and Professional Conduct

of the Court of Accounts’ Staff

It sets ethical and professional conduct

norms and establishes principles to be

followed to increase the authority and

prestige of the RCoA as a supreme audit

institution.

The Statute of the External Public Auditor

It regulates the career, rights and obligations of

external public auditors, as well as the labor relations between them and the Court of

Accounts.

Updating :• Norms for

evaluating the work of external public

auditors;• Recruitment policy;• Delegation rules;• Developing

procedures on the specific activities; • Policy of sensitive

functions;• Reviewing the organizational structure etc.

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National Trade Register Office

National Institute of Statistics

State Construction Inspectorate

Ministry of Public Finances

Competition Council

Internal Audit Association

Collaboration with institutions and professional organizations

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2009 2010 2011 2012 2013 TOTAL

2.0242.773 2.751 2.317 2.233

12.098

In the period 2009-2013were checked 12.098

entities

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2009 2010 2011 2012 2013 TOTAL

245

127

65 64 73

574Certificates of compliance issued by the Court under the period 2009-2013

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CONCLUSIONS

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Thank youThank youfor your attentionfor your attention!!