Performance Audit Risk Analyses

1 Objectives of risk analyses

The objective of risk analyses is to form an overall picture of risks and

problem areas in sectoral and cross-sectoral activities, using consistent

procedures. The result is a prioritized proposal for audit topics together

with detailed reasonings. To ensure that risk analyses are concise and

clear, the results are presented in table form. This makes it easier to

compare topics and discuss risk factors.

The purpose of these guidelines is to support risk analyses and steer

reporting.

2 Criteria for focusing audits

The focusing of audits is guided by the National Audit Office's strategy.

Since important decisions regarding the focusing of audits are made on

the basis of risk analysis, the strategy also guides risk analyses. The

strategy defines permanent audit areas in which audits are to be conducted

annually, strategic theme areas in annual reporting to Parliament and

general criteria for focusing audit activities. These criteria are used in

selecting audit topics and in defining permanent audit areas and strategic

theme areas in annual reporting to Parliament.

The criteria for focusing audits that are defined in the strategy are:

1. The financial significance of the matter and the associated financial

risk. In evaluating financial significance and risk, attention should

also be paid to the longer term.

2. The possibility to produce useful information that

− has considerable significance for decision-making concerning

the state's financial management or

− ensures the correctness and quality of the state's financial

management, the reporting of true and fair information and

compliance with the budget

− promotes the economy, efficiency and effectiveness of financial

management and activities that fall within the scope of external

audit.

The financial significance of the matter means its impact on the state

economy: the state's income, expenses, assets or commitments. The...