Determining the Audit Approach

In addition to deciding how much focus or emphasis to place on oversight in the audit (see the section Determining the Degree of Focus on Oversight for more on this topic), auditors will need to consider which audit approach they should adopt. Essentially, this means deciding to adopt either an approach focused on the design of oversight structures and systems or an approach focused on the results and effectiveness of the oversight body in exercising its oversight functions, roles, and responsibilities.

Focusing on oversight structures and systems means examining the oversight body’s:

• structure and mandate,
• roles and responsibilities,
• independence requirements, and
• skills and experience requirements

to determine whether they are adequate, in line with best practices, or comparable with an appropriate benchmark.

Focusing on results and effectiveness aspects means examining the quality of the oversight of the selected initiative’s actual:

• performance,
• risk management,
• compliance,
• reporting, and so on.

Given sufficient time and resources, auditors can combine both approaches and conduct a more complete audit that will provide additional assurance to the report’s recipient.

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