Quality in Performance Audit in
Rigsrevisionen (Denmark)
by Maibritt R. Kallehauge
Background – where do I work?
• Rigsrevisionen is an independent audit institution under the Folketing
(parliament)
• Rigsrevisionen performs both financial audit and performance audit
• the Department for Performance Audit totals app. 70 staff members out
of a total of 280
• most staffers working with PA have degrees in social sciences
• work is organised according to sectors – my office is e.g. responsible for
defence and foreign affairs
• on average it takes 1 year to complete a report to the Public Accounts
Committee – we complete app. 18 reports a year
• the individual performance audits are usually performed by teams of 3
members under supervision of respectively a director, the head of
department and the Auditor General
2
The Presentation – what will I talk
about?
First Part: The Concept of Quality in Performance Audit
Second Part: Quality in the Performance Audit Process in Rigsrevisionen
Third Part: Principles of Quality in Rigsrevisionen
3
First Part: The Concept of Quality in
Performance Audit
Organisation
Quality
Management
Process
Product Quality
Assurance
Quality Control
4
Second Part: Quality in the Performance
Audit Process in Rigsrevisionen
Review by AG
Evaluation experts
Review by AG
Review by management
Hearing
Hearing
Review by AG
Evaluation by client
Guidelines, checklists, discussion and audit support
Pre-audit Audit Post-audit
5
The Basics: Guidelines, Checklists,
Discussion and Audit Support
Evaluation experts
Review by AG
Review by management
Evaluation by client
Review by AG
Hearing
Hearing
Review by AG
Guidelines, checklists, discussion and audit support
Pre -audit Audit Post -audit
6
Review by Auditor General and
Management
Evaluation experts
Review by AG
Review by management
Evaluation by client
Review by AG
Hearing
Hearing
Review by AG
Guidelines, checklists, discussion and audit support
Pre -audit Audit Post -audit
7
8
Post -audit
Evaluation experts
Evaluation by client
Guidelines, checklists, discussion and audit support
Review by AG
Hearing
Review by AG
Audit
Hearing
Hearing by Client
Review by management
Pre -audit
Review by AG
9
Post -audit
Evaluation experts
Evaluation by client
Guidelines, checklists, discussion and audit support
Review by AG
Hearing
Evaluation After the Fact
Review by AG
Audit
Hearing
Review by management
Pre -audit
Review by AG
Third Part: Principles of Quality in
Rigsrevisionen
Which principles support the quality of performance audits in
Rigsrevisionen?
• Flexibility in the Choice of Methods
• Dialogue in the Audit-team, with Management and Clients
• Delegation of Responsibility
• Openness to the Public
10
Principle 1: Flexibility in the Choice of
Methods
WHY? To ensure that the quality assurance matches the method chosen
for the individual audit.
HOW? We choose methods depending on the subject in order to meet
relevance criteria of auditee and public.
RESULT Flexibility provides space for creativity.
11
Principle 2: Dialogue in Audit Team and
with Management
WHY? Exposing ideas and methods to criticism enhances validity and
strength of design and conclusions.
HOW? Discussion and review by team, peers and management continually
during the audit process.
12
…continued Principle 2: Dialogue with
the clients about audit findings
WHY? To ensure accuracy, and relevance of the audit, including
conclusions and recommendations. Secondly, increasing client ownership
to recommendations and follow-up.
HOW? Various hearings during design and conclusion phase.
RESULT Dialogue with clients and colleagues to enhance relevance and
validity.
13
Principle 3: Delegation of Responsibility
WHY? More efficient audit process. Increases the ownership of staff to the
quality of the final product.
HOW? Quality control is the responsibility of the project team – leaves
more time for management to do management tasks (strategic leadership)
RESULT Delegation enhances ownership of staff to quality.
14
Principle 4: Openness to the Public
WHY? Live up to the standards on transparency and accountability that
Rigsrevisionen applies to others, and to test whether we meet the
expectations of key stakeholders.
HOW? Evaluation of the audit process by clients. Evaluations on quality
and communication by external experts.
RESULT Openness forces us to work continuously with quality.
15
Q&A?
16
