Developing and Implementing Strategies for Reform of External Audit

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Developing and Implementing Strategies for Reform
of External Audit

• Bill Burnett, Technical Cooperation Manager, UK
  National Audit Office, Addis Ababa, May 2003

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Diagnosis

• Identify pressures for reform
• Internal
• External
• Evaluate commitment to reform
• Internal
• External
• Are they real?

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Diagnosis - Content

• Peer review
• International standards
• Independence
• Legal mandate
• Status and tenure
• Methodologies
• Planning
• Evidence collection
• Reporting and follow-up

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Diagnosis - Method

• Peer review
• Identify key stakeholders internal and external
• Comparative study of relevant best practice
• Wide range of interviews
• Review of actual work
• Widespread consultation

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Diagnosis - Method

• Peer review
• Detailed report
• Findings
• Conclusions
• Practical recommendations
• Long term strategic development plan
• Long term aims vision and mission
• SMART objectives and intermediate milestones
• Performance measurement and risk assessment

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Implementation

• A long term partnership
• Remember people are the key
• Ensure ownership
• Ensure communication
• Educate and inform stakeholders
• Maintain commitment
• Reward success
• Learn from disappointments

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Implementation

• Constantly revisit and if necessary revise
  strategy
• Be ambitious but realistic
• Dont assume anything
• Dont patronise
• Consider wider environment
• Be flexible, patient and honest
• LISTEN AND OBSERVE!

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Typical Challenges

• Political interference
• Lack of genuine commitment
• Culture and history of organisation
• Lack of drivers for change
• Low level of technical and management skills
• Low people skills
• Lack of incentive for change

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Questions?