Audit process
NAOF audits are conducted as openly as possible and in positive interaction with the audited entity. The stages of a financial audit differ from those of other audits, which is why they are discussed separately.
Representatives of the audited entity provide the information required for the audit to NAOF auditors, while the audited entities are also entitled to up-to-date information on the progress of the audit. NAOF auditors can be contacted at all phases of the audit.
Planning phase
At the planning phase, the auditors gather information on the audit topic, determine the objective of the audit and audit questions, and decide if the audit should go ahead.
The auditors engage in dialogue with the audited entities from the planning phase on. The audited entities can comment on the audit plan before a decision to start the audit is made.
Audit phase
The NAOF informs the audited entities of starting the audit. The auditors then contact the entity to obtain information and documents.
Audits vary in duration, and an individual audit usually takes about one year to complete. The most time-consuming steps of the audit are gathering and analysing information.
The audit concludes with the drawing up of an audit report. The NAOF presents its preliminary audit findings and conclusions in a draft audit report. The audited entity and the ministry responsible for its sector are always asked to give feedback on the draft audit report. These statements are taken into consideration in the final audit report at the NAOF’s discretion and published on the NAOF website.
After the audit
The completed audit report is published on the NAOF website. The audit report is also sent to the audited entities; the ministry in whose administrative branch the audited agency operates; Parliament’s Audit Committee; and other Committees within whose remit the audit topic falls.
The audit report contains the NAOF’s findings, conclusions and recommendations regarding the audit topic. Based on the recommendations, the audited entity can assess and select the measures it will take to develop its activities. Once the audit report has been published, the NAOF can use the audit data and findings by, for example, presenting the audit to its stakeholders or writing articles for the media or professional publications.
After issuing the audit report, the NAOF sends a feedback survey to the audited entities and uses the data thus obtained to develop its audit activities.
Audit follow-up is a phase that comes a few years after the audit report has been issued. For the purposes of the follow-up, the NAOF asks the audited entity for information on the actions it took based on the audit. At the follow-up phase, the auditors can also send requests for interviews and documents to the entity. On this basis, the NAOF prepares a follow-up report and publishes it on its website.
Phases of financial audits
The NAOF conducts an annual financial audit on all other central government accounting offices besides Parliament and the government agencies operating in connection with it, as the NAOF is itself part of the parliamentary community.
At the planning phase of financial audits, NAOF auditors carry out risk analyses for the audits, while they also assess the organisation of internal control and risk management at the audited entities and plan measures to counteract the risks. On this basis, dedicated plans for financial audits are prepared.
During the financial year, the auditors audit the accounting offices’ bookkeeping, processes and process management, budget compliance and state of internal control. The auditors also review the actions taken as a result of the recommendations issued on the previous round.
The accounting offices’ final accounts are completed at the beginning of the year. NAOF auditors then audit them and prepare financial audit reports on them. Sufficient documentation is important at the reporting phase. In addition to a financial audit report, each accounting office receives an annual summary containing key observations made during the audits of that year. The financial audit reports are also published on the NAOF website.