Content area
Full Text
Countless articles and books have been written on variations of the theme "top down or bottom up planning". This is yet another, but with the focus on audit planning in general, with particular emphasis on public sector audit planning. Although the reference point is that of internal audit in an international agency, the concept is equally applicable in national government departments and agencies, and probably in the private sector as well.
With this vantage point, the answer to the question in the title is a resounding "Both"!
At the Food and Agriculture Organization of the United Nations (FAO), audit planning is a high priority in the management of the Office of the Inspector-General. It is viewed as much more than applying the usual planning techniques incorporating risk analysis, assignment rotation and so forth. A major focus is on matching the audit plan to the current priorities of the Organization, and how the Office fulfills its mandate through careful planning, thus ensuring that audit work is based on priorities developed within the Organization and ultimately approved by the Governing Body.
The Mandate of the Office of the Inspector-General
The Regulations, Rules and Policies of the Organization provide a broad mandate for the Office of the Inspector-- General. The function is described as "an independent appraisal activity within the Organization for the review of accounting, financial and other operations as a basis for service to management." The principal responsibilities are to encompass, inter alia, the review and evaluation of the soundness and adequacy of systems, procedures and internal controls; the safeguard and accountability of assets, the compliance with policies, rules and regulations, and practices, both at Headquarters in Rome and the regional, sub-regional, and the 75 field locations around the world.
The Office of the Inspector-General is located in the Office of the Director-General, and the Inspector-General reports directly to the Director-General. The Office determines its own audit priorities while providing for any special assignments or investigations from the Director-General or senior management for audit assistance or advice on specific issues. Accordingly the audit plan, prepared independently by the Office, is submitted to the Director-General on a biennial basis for his endorsement.
Recognizing the importance of modern auditing techniques in discharging its professional responsibilities, and in...