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Guidance note 24 July 2016 This note has been issued by the EITI International Secretariat to provide guidance to implementing countries on meeting the requirements in the EITI Standard. Readers are advised to refer to the EITI Standard directly, and to contact the International Secretariat to seek further clarification. Contact details can be found at www.eiti.org. Website www.eiti.org Email [email protected] Telephone +47 22 20 08 00 Fax +47 22 83 08 02 1 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway Data quality and assurance Guidance note 24 – Requirement 4.9 Table of contents 1. Summary ...............................................................................................................................2 2. Guidance ...............................................................................................................................4 Step 1 - review audit and assurance practices. .......................................................................................... 4 Step 2 – agree on assurances to be provided by reporting entities to the Independent Administrator. .. 6 Step 3 – Document the assessment of auditing processes, options considered when developing quality assurance procedures, and the rationale for agreed assurances............................................................... 8 Step 4 – Assess compliance with quality assurance procedures and the materiality of any omissions..... 8 Step 5 – Validation of data quality and assurance procedures ................................................................. 9 3. Checklist for data quality and assurance .............................................................................. 10 Review of auditing and assurance systems .............................................................................................. 10 Assessment of auditing practices ............................................................................................................. 10 Quality assurance procedures .................................................................................................................. 10 Recommendations ................................................................................................................................... 11 Annex: Country examples ........................................................................................................ 12

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Page 1: Data quality and assurance...assurance: Step 1 - review audit and assurance practices. The EITI Standard (Requirement 4.9) seeks to build on existing audit and assurance systems in

Guidancenote24 July2016

ThisnotehasbeenissuedbytheEITIInternationalSecretariattoprovideguidancetoimplementingcountriesonmeetingtherequirementsintheEITIStandard.ReadersareadvisedtorefertotheEITIStandarddirectly,andtocontacttheInternationalSecretariattoseekfurtherclarification.Contactdetailscanbefoundatwww.eiti.org.

[email protected]+4722200800Fax+4722830802 1AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

DataqualityandassuranceGuidancenote24–Requirement4.9

Tableofcontents1.Summary...............................................................................................................................2

2.Guidance...............................................................................................................................4

Step1-reviewauditandassurancepractices...........................................................................................4Step2–agreeonassurancestobeprovidedbyreportingentitiestotheIndependentAdministrator...6Step3–Documenttheassessmentofauditingprocesses,optionsconsideredwhendevelopingqualityassuranceprocedures,andtherationaleforagreedassurances...............................................................8Step4–Assesscompliancewithqualityassuranceproceduresandthematerialityofanyomissions.....8Step5–Validationofdataqualityandassuranceprocedures.................................................................9

3.Checklistfordataqualityandassurance..............................................................................10

Reviewofauditingandassurancesystems..............................................................................................10Assessmentofauditingpractices.............................................................................................................10Qualityassuranceprocedures..................................................................................................................10Recommendations...................................................................................................................................11

Annex:Countryexamples........................................................................................................12

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[email protected]+4722200800Fax+4722830802 2AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

1. Summary

TheEITIStandardseekstoensureacredibleEITIreportingprocessthatproducesreliabledata.WhiledataqualityissuesarerelevanttoallaspectofEITIimplementation1,theEITIStandardputsaparticularemphasisonwhetherthedataoncompanypaymentsandgovernmentrevenues(withinthescopeofEITIreporting)aresubjecttocredible,independentaudit,applyinginternationalauditingstandards.Toachievethis,theEITIseekstobuildonexistingauditandassurancesystemsingovernmentandindustry,andtopromoteadherencetointernationalpracticeandstandards.Incountrieswithweakauditandassurancesystems(ingovernmentand/orindustry),EITIReportingcanplayakeyroleinidentifyingtheseissues,encouragingreformsandmonitoringprogress.Incountrieswithstrongauditandassurancesystems,theEITIReportingproceduresshouldnotduplicateexistinginternalcontrolsorimposetime-consumingreportingrequirements.ThedetailedrequirementsaresetoutinRequirement4.9andinthestandardisedTermsofReferenceforIndependentAdministrators.

Asastartingpoint,theEITIrequiresanassessmentofwhethercompanypaymentsandgovernmentrevenuesaresubjecttocredible,independentaudits,applyinginternationalauditingstandards(requirement4.9a)2.Thisassessmenthastwofunctions.First,inmanycountries,thisassessmenthasidentifiedweaknessesinauditandassurancepraxis,andhasledMSGstomakerecommendationstostrengthenthiswork.TheadoptionoftheserecommendationsandoverallprogressinstrengtheningauditandassurancesystemscanthusbetrackedthroughsuccessiveEITIReports.Second,theassessmentinformsMSGdeliberationsonensuringthattheEITIReportingprocessproducesreliabledata.

ThestandardisedTermsofReferenceforIndependentAdministratorsincludedetailedprovisionsaddressingdataqualityandassurancethatmustbecomprehensivelyaddressed.Inmanycases,theIndependentAdministratorwillproposequalityassuranceproceduresfortheMSG’sreviewandapproval.ThedecisionstobemaderegardingdataqualityandassurancerequirecarefulattentionfromtheMSG.Thesedeliberationsshouldbewelldocumented,includingtheoptionsconsideredandtherationalefortheagreedprocedure.Insufficientattentiontoanddocumentationoftheseaspectshasbeenacommoncauseofnon-compliance.

Thisnoteprovidesguidancetomulti-stakeholdergroups(MSGs)onmeetingtheserequirements.Itsuggestfourkeysteps:(1)reviewauditandassurancepractices;(2)agreeonassurancestobeprovidedbyreportingentitiestotheIndependentAdministrator;(3)documenttheMSG’sdeliberations;and(4)

1TheEITIRequirementsrelatedtodataassurancereferstothefinancialdatadisclosedinaccordancewithRequirement4.However,ValidationalsoexaminesanyMSGdiscussionsrelatedtoensuringthattheinformationdisclosedinaccordancewithRequirements2,3,5and6arereliable,andwhetherthereareanyreliabilitygapsintheinformationprovided(seetheEITIValidationGuide).2Wherethisassessmentconcludesthatthereis:(i)routinedisclosureofthedatarequiredbytheEITIStandardinrequisitedetail,and(ii)thatthefinancialdataissubjecttocredible,independentaudit,applyinginternationalstandards,themulti-stakeholdergroupmayseekBoardapprovaltomainstreamEITIimplementation.Thereareseparateguidancematerialsforthemainstreamingprocedure.

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[email protected]+4722200800Fax+4722830802 3AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

assesscompliancewithqualityassuranceproceduresandthematerialityofanyomissions.Thefinalsection(5)addressestheValidationofdataqualityandassuranceprovisions.

EITIRequirement4.9 Dataqualityandassurance.

4.9.aTheEITIrequiresanassessmentofwhetherthepaymentsandrevenuesaresubjecttocredible,independentaudit,applyinginternationalauditingstandards.

4.9.bItisarequirementthatpaymentsandrevenuesarereconciledbyacredible,independentadministrator,applyinginternationalauditingstandardsandtheadministrator’sopinionregardingthatreconciliationincludingdiscrepancies,shouldanybeidentified.

4.9.b.iThereconciliationofcompanypaymentsandgovernmentrevenuesmustbeundertakenbyanIndependentAdministratorapplyinginternationalprofessionalstandards.

4.9.b.iiTheIndependentAdministratormustbeperceivedbythemulti-stakeholdergrouptobecredible,trustworthyandtechnicallycompetent.Themulti-stakeholdergroupshouldendorsetheappointmentoftheIndependentAdministrator.

4.9.b.iiiThemulti-stakeholdergroupandtheIndependentAdministratorarerequiredtoagreeaTermsofReferencefortheEITIReportbasedonthestandardTermsofReferenceandthe‘agreeduponprocedureforEITIReports’endorsedbytheEITIBoard.Shouldthemulti-stakeholdergroupwishtoadaptordeviatefromtheseagreeduponprocedures,approvalfromtheEITIBoardmustbesoughtinadvance(Requirement8.1).

4.9.cWheretheassessmentin4.9(a)concludesthatthereis(i)routinedisclosureofthedatarequiredbytheEITIStandardinrequisitedetail,and(ii)thatthefinancialdataissubjecttocredible,independentaudit,applyinginternationalstandards,themulti-stakeholdergroupmayseekBoardapprovaltomainstreamEITIimplementationinaccordancewiththe‘Agreeduponprocedureformainstreameddisclosures’.Withoutsuchpriorapproval,adherenceto4.9.bisrequired.

Requirement8.3EITIValidationdeadlinesandconsequences.

c)Consequencesofnon-compliance.

8.3.c.iAcountrymustachievesatisfactoryprogressonthefollowingfourrequirementsinordertoavoidsuspension:governmentengagement(1.1),companyengagement(1.2),civilsocietyengagement(1.3)andtimelyEITIreporting(4.8).Whereacountryachieveslessthanmeaningfulprogressondataquality(4.9)anddatacomprehensiveness(4.1),theMSGwillberequiredtodiscloseatime-boundactionplansforaddressingweaknessesindatareliabilityandcomprehensiveness.Progresswithimplementationofthisplanwillbetakenintoaccountinsubsequentvalidations.

Source:TheEITIStandard(15February2016),pp.26-27,35.

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[email protected]+4722200800Fax+4722830802 4AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

2. Guidance

TheEITIInternationalSecretariatrecommendsaseriesofstepsforMSGstoaddressdataqualityandassurance:

Step1-reviewauditandassurancepractices.

TheEITIStandard(Requirement4.9)seekstobuildonexistingauditandassurancesystemsingovernmentandindustryandtopromoteadherencetointernationalbestpractice.ThetemplateToRsforIndependentAdministrators(Section1.2.3)requireanassessmentofauditandassurancesystemsingovernmentandindustryandusesthistoinformthedesignoftheEITIreportingprocess3.Itisarequirementinsection4.2.fofthetemplateToRsforIAsthatEITIreportingdocumentswhetherallparticipatingcompaniesandgovernmententitieshadtheirfinancialstatementsauditedinthefinancialyear(s)coveredbytheEITIReport,withanygapsorweaknessesdisclosed.Thisprovidesessentialcontextualinformationaboutdatareliability.Inweakauditandassurancesystems(bothpublicandprivate),thedesignofEITIqualityassuranceprocedurescanhelpstrengthengovernmentsystemsandserveasadiagnostictoolforreforms.Incountrieswithstrongsystems(suchasNorway,Figure3),thisavoidsduplicatingassuranceprocedures,andrecognisesandreinforceadherencetobestpractice.

Reviewofrequirements/rules:Thefirststepistoconsidertherelevantlegislation,regulationsandinstitutionsresponsibleforoverseeingtheauditofreportinggovernmententitiesandcompanies.ResponsibilityforauditingpublicsectoraccountsgenerallyrestswithanindependentOfficeoftheAuditorGeneral(orCoursdesComptesinFrancophonecountries).Therearetypicallytwotypesofauditregimesforprivately-heldextractivescompanies.Companieslistedonstockexchangesaretypicallyrequiredtopublishauditedfinancialstatements,usuallyaccessibleonline.Rulesforprivately-heldcompaniesdifferaccordingtocountry,yetmostjurisdictionsrequireexternalauditsforcompaniesaboveacertainturnoverthreshold.Auditingproceduresforstate-ownedenterprisesalsovary:incountrieswheretheSOEhasbeencorporatizedtheytendtobeauditedbyexternalauditors;inotherstheState’sAuditorGeneraloftenhasjurisdictionasintheexampleofMyanmarinFigure1.

Guidingquestions:

• Dolawsandregulationsspecifythatpublic-sectoraccounts(governmentministries,independentregulatoryagencies,state-ownedenterprises)beaudited?

• WhichinstitutionisresponsibleforauditinggovernmententitiesinvolvedinEITIreporting?Arestate-ownedenterprisesauditedbythesameagencyasgovernmententities,orbyexternalauditors?

3Thisprocedureisnotnew.ItwasexplicitlyrequiredasperRequirement5.2.boftheEITIStandard(2013)andhasnowbeenincorporatedintothetermsofreferenceforIndependentAdministrators(Section1.2.3)availablehere:https://eiti.org/guidance-notes-and-standard-terms-reference#ToRIA

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[email protected]+4722200800Fax+4722830802 5AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

• Whatarethelegalandregulatoryrequirementsforprivately-ownedcompanies?Whataretherequirementsforcompanieslistedonastockexchange?

• Whatisthefrequencyofrequiredaudits,forbothgovernmententitiesandcompanies?

• Ispublicdisclosureoftheauditreportsrequired?Ifso,where?

• Howdonationalstandardscomparetointernationalbestpractice?

• Whatisthebasis(cash-basedoraccrual-based)forauditedaccountsofgovernmententitiesandextractivescompanies?IsitthesameasthatusedforEITIreporting(typically,butnotalways,cash-based)?

• Areanyreformsrelatedtoauditingstandardsplannedorunderway?

Assessmentofpractice:Thesecondstepistoassessactualpracticecomparedtothelegalrequirements.Inanumberofimplementingcountries(e.g.,theDemocraticRepublicofCongo(Figure2),Mauritania,Senegal),theAuditorGeneralhasbuiltuparrearsofseveralyearsforpublicsectorauditsandhadnotauditedtheaccountsforreportinggovernmententitiesfortheyearunderreview.Similarly,manyofthecompaniesthatreportinEITIimplementingcountriesdonothaveauditedfinancialstatements.TheMSGshouldconsiderwhetherthesepracticesareinlinewithlegislativerequirements,anassessmentthatwillbeusefulindesigningthequalityassuranceprocedures.

Guidingquestions:

• Havetheparticipatingcompaniesandgovernmententitieshadtheirfinancialstatementsauditedinthefinancialyear(s)coveredbyEITIreporting?(Discrepanciesinpracticecouldformthebasisforvaluablerecommendations.)

• Areallofthereportingentities’financialstatementsandauditreportspubliclyaccessible?Ifsowhere?

• Whataretheothermajordeviationsfromthelegislativerequirementsforauditingproceduresinbothgovernmententitiesandcompanies?

• Whathasbeentheimpactofanyrecentreformrelatedtoauditingonactualpractice?

• Howefficientisthecurrentauditingpracticesforbothgovernmententitiesandcompanies?Couldanychangestocurrentpracticesimproveefficiency?

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[email protected]+4722200800Fax+4722830802 6AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Aconciseexplanationoftheserulesandrequirements,includinglinkstootherpublicallyavailableinformation,isoftenausefulfeatureinEITIReports.ItisrecommendedthattheEITIReportincludesasummaryofthefindingsand(whereappropriate)recommendationsforreformstoaddresstheseissues.Otherwise,theMSGshouldensurethattheresultsofthereviewofauditandassurancepracticesarepubliclyavailableelsewhere.

Step2–agreeonassurancestobeprovidedbyreportingentitiestotheIndependentAdministrator.

Basedontheearlierassessmentofauditingandassurancelegislativerequirementsandactualpractice,theMSGisadvisedtoexploredifferentoptionsforqualityassuranceinlightofwhetherallreportingentitieshavehadtheirfinancialstatementauditedfortheyear(s)underreview.TheproposedqualityassuranceproceduresshouldbeoutlinedintheTermsofReferenceforIndependentAdministratorsandconfirmedattheinceptionphase,inlinewithSection1.3.3ofthetemplateToRsfortheIA.AssetoutontheToRs:“TheIndependentAdministratorshouldexercisejudgementandapplyappropriateinternationalprofessionalstandardsindevelopingaprocedurethatprovideasufficientbasisforacomprehensiveandreliableEITIReport.”SowhiletheMSGcanproposeanapproachtoqualityassuranceforreportingentities,theIndependentAdministratorisnotrequiredtoadopttheproposalifitisdeemedinsufficienttomeetappropriateinternationalprofessionalstandards.

TheMSGshouldalsodecideonclearlinesofresponsibilityforcompilingthecontextualinformationinEITIreporting,ensuringappropriateandconsistentsourcing/attributionofallstatisticsincluded.ItshouldalsoconsiderprovisionsforsafeguardingtheconfidentialityofEITIinformationpre-reconciliation,togetherwiththeIndependentAdministrator,inlinewithSection1.2.6oftheToRsfortheIndependentAdministrator,whichrequiresthattheinceptionreport“confirmsthereportingtemplates,aswellasanyproceduresorprovisionsrelatingtosafeguardingconfidentialinformation”.

AnumberofexamplesofqualityassurancesareincludedinthestandardTermsofReferenceforIndependentAdministratorsontheEITIwebsite.4Dependingonauditingpracticesandthelevelofdatareliabilitysought,theIndependentAdministrator,withapprovalfromtheMSG,mayconsiderrequiringfromreportingentitiesanyorallofthefollowing:

• “Thataseniorcompanyorgovernmentofficialfromeachreportingentitysignsoffonthecompletedreportingformasacompleteandaccuraterecord.

• Thatthecompaniesattachaconfirmationletterfromtheirexternalauditorthatconfirmsthattheinformationtheyhavesubmittediscomprehensiveandconsistentwiththeirauditedfinancialstatements.Themulti-stakeholdergroupmaywishtophaseinanysuchproceduresothattheconfirmationlettermaybeintegratedintotheusualworkprogrammeofthecompany’sauditor.Wheresomecompaniesarenotrequiredbylawtohaveanexternalauditorandthereforecannotprovidesuchassurance,this

4EITIInternationalwebsite,https://eiti.org/guidance-notes-and-standard-terms-reference#ToRIA

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shouldbeclearlyidentified,andanyreformsthatareplannedorunderwayshouldbenoted.

• Whererelevantandpracticable,governmentreportingentitiesmayberequestedtoobtainacertificationoftheaccuracyofthegovernment’sdisclosuresfromtheirexternalauditororequivalent.“

a) Assurancesfromreportinggovernmententities

Insomeimplementingcountries,wheretheAuditorGeneralhasfallenbehindinitsstatutoryduties,theMSGhasworkedwiththeFinanceMinistry’sauditdepartment(orInspectionGénéraledesFinancesinFrancophonecountries)tocertifyEITIreportingbygovernmententities.SeeforexampletheDemocraticRepublicofCongoinFigure5below.However,thelackoftheconstitutionalautonomyoftheAuditorGeneral’sOfficemeanssuchmeasuresshouldbynaturebetemporary,pendingareturntostatutoryoperationsoftheAuditorGeneral’soffice.TheMSGmaywishtoconsiderhowtheEITIprocesscanhelpsteerandsupportsuchcapacitydevelopment.ItisalsoadvisablefortheMSGtomaintainclosecontactwiththeAuditorGeneral’soffice,reflectedintheexampleofMongoliainFigure4.TheMSGisalsoadvisedtonotetheaccountingbasesonwhichannualauditsandEITIreportingarerespectivelybased.IfforinstanceacompanyisauditedonanaccrualbasisbutEITIreportingisonacashbasis,thenthepersoncertifyingthereportingtemplatesiscertifyingthatthecash-basedreportingisconsistentwiththecompany’saccrual-basedaccounts.

b) Assurancesfromreportingcompanies

Inlightofthefindingsfromitsassessmentofauditingpractices,theIndependentAdministratorshouldproposeforMSGreviewandapprovalappropriateassuranceproceduresforcompanyandgovernmentdisclosures.Indevelopingassuranceprocedures,theIndependentAdministratorandMSGshouldconsiderwhethercompaniesauditedfinancialstatementsarecompiledonanaccrualorcashbasis.Forcompanieswhosefinancialstatementsfortheperiodunderreviewhavenotbeenauditedexternally(tointernationalstandards),theIndependentAdministratorandMSGwillneedtoagreeappropriateassuranceproceduresthatensurethecredibilityofthedata.Insomecases,a“two-tierapproach”mightbeconsidered.Forcompanieswhosefinancialstatementswereauditedintheyear(s)underreview,theMSGmayconsidermoreflexibilityindecidingwhetherornottorequire,forexample,certificationofEITIreportingtemplatesfromtheexternalauditors.

Assuranceproceduresforstate-ownedenterprises’reportingvarybycountry,dependingonwhethereachentityisauditedbytheState’sAuditorGeneralorbyaprivateexternalauditor.TheIndependentAdministratorshouldproposeanapproachforMSGreviewandapproval,Forexample,Azerbaijan’s2014EITIReportincludesarisk-basedapproachspotauditchecksofspecificpaymentsacrossreportingentities(Figure9below).

Assuranceproceduresvarybetweenimplementingcountries,fromsign-offfromaseniorcompanyofficialinthePhilippines,whereallreportingcompanies’financialstatementswereauditedfortheyearunderreview(Figure7),toMaliwhereasign-offfromcompanies’externalauditorsisrequired(Figure8).

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Step3–Documenttheassessmentofauditingprocesses,optionsconsideredwhendevelopingqualityassuranceprocedures,andtherationaleforagreedassurances.

MSGdiscussionsaboutauditingprocessesandEITIqualityassuranceproceduresshouldbeclearlydocumentedintheminutesfromMSGminutes(requirement1.4.b(viii)),reflectedintheTermsofreferencefortheIndependentAdministrator(Requirement4.9.b.iii),andaddressedintheinceptionreport,draftreportandfinalreportfromtheIndependentAdministratoraspertheToRs.AnexampleisprovidedfromtheUnitedKingdominFigure10.

Step4–Assesscompliancewithqualityassuranceproceduresandthematerialityofanyomissions

Followingdatacollection,theIndependentAdministratorshouldprovide:

“anassessmentofwhetherallcompaniesandgovernmententitieswithintheagreedscopeoftheEITIreportingprocessprovidedtherequestedinformation.AnygapsorweaknessesinreportingtotheIndependentAdministratormustbedisclosedintheEITIReport,includingnaminganyentitiesthatfailedtocomplywiththeagreedprocedures,andanassessmentofwhetherthisislikelytohavehadmaterialimpactonthecomprehensivenessofthereport”(Section4.2eoftheToRsfortheIndependentAdministrator).

Furthermore,oneofthecentralobjectivesoftheEITIreportingprocessisfortheIndependentAdministratortoprovideanassessment“onthecomprehensivenessandreliabilityofthe(financial)datapresented,includinganinformativesummaryoftheworkperformedbytheIndependentAdministratorandthelimitationsoftheassessmentprovided”(Section4.2coftheToRsfortheIndependentAdministrator).

TheMSGisalsoadvisedtoensurethatasummaryoftheworkondatareliabilityperformedbytheIndependentAdministratorisincludedintheEITIReport,clearlynotingthelimitationsoftheassessmentprovided.

TheMSGandIndependentAdministratormaywishtodrawonthereviewoflegislativeauditingrequirementsandtheassessmentofpracticeandpracticalexperiencetoformulaterecommendationsonthesematters.ThesemayrangefromrecommendationsnarrowlyfocusedonimprovingthequalityofEITIdatatorecommendationsfocussedonwiderreformstoauditandassuranceprocedures.

WhererecommendationsrelatedtodataqualityandassurancehavebeenincludedinpreviousEITIReports,theMSGshouldtrackprogressinfollowingupandimplementingtheserecommendationsaspartoftheAnnualProgressReport(Requirement7.4.a.iii).

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[email protected]+4722200800Fax+4722830802 9AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Step5–Validationofdataqualityandassuranceprocedures

EITIimplementingcountriesarerequiredtomeetminimumdatareliabilityrequirementsduringValidation,inlinewithRequirement8.3.c.iofthe2016EITIStandard:“Whereacountryachieveslessthanmeaningfulprogressondataquality(4.9)anddatacomprehensiveness(4.1),theMSGwillberequiredtodiscloseatime-boundactionplansforaddressingweaknessesindatareliabilityandcomprehensiveness.Progresswithimplementationofthisplanwillbetakenintoaccountinsubsequentvalidations.”

Thisprovisionfurtherreinforcestheimportanceofdiligentattentiontotheseissuesthroughoutthereportingprocess.

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3. Checklistfordataqualityandassurance

Thefollowingchecklistisintendedtoguidemulti-stakeholdergroupsinaddressingRequirement4.9:

Reviewofauditingandassurancesystems

⃝ Havethestatutoryauditandassurancerequirementsforcompaniesandgovernmententitiesbeenassessed,includingtherelevantlaws,regulationsandanyreformsplannedorunderway(Requirement4.9.a)?

⃝ Hasthemulti-stakeholdergroupconsideredthealignmentoftheseprocedureswithinternationalstandards5(Requirement4.9.a)?

Assessmentofauditingpractices

⃝ HastheIndependentAdministratorassessedwhetherallreportingentities(companiesandgovernmententities)participatingintheEITIreportingprocesshadtheirfinancialstatementsauditedforthefinancialyear(s)coveredbytheEITIReport?Havetherebeenanydeviationsfromthestatutoryregulationsinpractice(Requirement4.9.a)?

Qualityassuranceprocedures

⃝ Aretheoptionsconsideredandtherationaleforqualityassurancestobeprovideddocumentedandpubliclyaccessible(Requirement1.4.b.viii)?

⃝ AretheassurancestobeprovidedbyreportingentitiestotheIndependentAdministratorareclearlydescribedintheEITIReport(Requirement4.9.a)?

⃝ HastheIndependentAdministratorassessedwhetherallcompaniesandgovernmententitiesparticipatinginEITIreportinghaveprovidedtherequiredassurance,inlinewiththeagreedprocedures(Requirement4.9.a)?

⃝ HastheIndependentAdministratorassessedthematerialityofanyomissions,byeithercompaniesorgovernmententities(Requirement4.9.b)?

⃝ IsinformationintheEITIReportthathasnotbeencollatedbytheIndependentAdministratorclearlysourced(Requirement4.9.b)?

5Forcompanies:theInternationalStandardsonAuditing(ISA)issuedbytheInternationalAuditingandAssuranceStandardsBoard(IAASB).Forpublicentities:theInternationalStandardsofSupremeAuditInstitutions(ISSAI)issuedbytheInternationalOrganizationofSupremeAuditInstitutions(INTOSAI).

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[email protected]+4722200800Fax+4722830802 11AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

⃝ IstheIndependentAdministrator’sassessmentofthereliabilityofEITIinformationisincludedintheEITIReport(Requirement4.9.b)?

Recommendations

⃝ DoestheEITIReportincluderecommendationsfromtheIndependentAdministratorforimprovingcompanyorgovernmentauditing/assurance?

⃝ HastheMSGassessedprogressonrecommendationsmadeinpreviousEITIReportsrelatedtodataqualityandassurance?

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Annex:Countryexamples

Figure1–ReviewofauditingandassurancepracticesinMyanmar(Myanmar2013EITIReport)

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Figure2–ReviewofauditingpracticesinDemocraticRepublicofCongo(DRC2014EITIReport)

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Figure3–ReviewofauditingandassurancepracticesinNorway(Norway2013EITIReport)

Figure4–QualityassuranceproceduresinMongolia(Mongolia2014EITIReport)

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Guidancenote24 July2016

[email protected]+4722200800Fax+4722830802 16AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Figure5–QualityassuranceproceduresinDemocraticRepublicofCongo(DRC2014EITIReport)

Figure6–QualityassuranceproceduresinMyanmar(Myanmar2013EITIReport)

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Guidancenote24 July2016

[email protected]+4722200800Fax+4722830802 17AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Page 18: Data quality and assurance...assurance: Step 1 - review audit and assurance practices. The EITI Standard (Requirement 4.9) seeks to build on existing audit and assurance systems in

Guidancenote24 July2016

[email protected]+4722200800Fax+4722830802 18AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Figure7–QualityassuranceproceduresinthePhilippines(Philippines2014EITIReport)

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Guidancenote24 July2016

[email protected]+4722200800Fax+4722830802 19AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Figure8–QualityassuranceproceduresinMali(Mali2013EITIReport)

Page 20: Data quality and assurance...assurance: Step 1 - review audit and assurance practices. The EITI Standard (Requirement 4.9) seeks to build on existing audit and assurance systems in

Guidancenote24 July2016

[email protected]+4722200800Fax+4722830802 20AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Figure9–QualityassuranceproceduresinAzerbaijan(Azerbaijan2014EITIReport)

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Guidancenote24 July2016

[email protected]+4722200800Fax+4722830802 21AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Figure10AgreeingqualityassuranceproceduresforEITIdataintheUnitedKingdom

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Guidancenote24 July2016

[email protected]+4722200800Fax+4722830802 22AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Source:Minutesofthe13thUKEITIMSGmeetingon15September2015.

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Guidancenote24 July2016

[email protected]+4722200800Fax+4722830802 23AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway

Figure11–AssessmentofdatareliabilityinMongolia(Mongolia2014EITIReport)

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Guidancenote24 July2016

[email protected]+4722200800Fax+4722830802 24AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway


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