2.3. Selecting the audit topic

Figure. Audit process (source: ISSAI 300)

Relevance

The main tool for selecting audit topics is to analyse discovered problems from different angles and to weigh the probability of harm or loss as a result of the detected problems.

In determining the relevance of an audit issue, it is useful to pay attention to aspects such as:

• the scale of the environmental problem (impact),
• public interest in the topic,
• the number of people and the scale of the area affected or endangered by the problem,
• the amount of money involved.

Another key question to ask when selecting an audit topic is what might happen if the issue in concern were not dealt with.

The greater the negative consequences related to a risk, the more consideration should be given to the problem.

There are several other essential aspects an auditor should consider when selecting an audit topic. The example below lists the most essential questions:

• Is the issue auditable?
  • Do we have a mandate to make recommendations? To whom?
  • Is the timing of the audit suitable?
• Do we have the capacity needed for this audit?
  • Do we have the necessary knowledge?
  • Can we subcontract experts?

Please note: SAIs have different mandates and practices in selecting audit topic, e.g. in some countries, the audit topic is proposed by Parliament, and in other countries, SAIs are independent and free to choose topics by themselves.

Added value

After answering the questions in the checklist above, auditors should also define the added value of the audit. In order to do so, the following can be used as control questions:

• Will the audit produce new knowledge?
• Will the audit have the capacity to draw links between problems in different sectors?
• What recommendations will the auditors be able to make?

After answering these questions, an auditor is better able to weigh up and focus the environmental problems identified in the preliminary study phase and is ready to start planning the audit.

Thinking exercise – Audit Design Matrix (ADM; 0/5) Please select a topic related to the environment/sustainability, which you find to be problematic and should be audited in your country. Please give a title to your audit. Write it down for yourself  and move on to the module 3 – designing the audit. You can use this ADM template.