Page Summary Reference Applies To

Assurance The ECA’s assurance 14.170 Compliance audit Financial

model model is based on the audit
audit risk model taking
due consideration of
the particular
characteristics of the
ECA’s audit
environment.

Audit risk and The objective of the 14.110 Compliance audit Financial

risk auditor is to identify audit
assessment and assess the risks to
procedures the audited entity not
meeting its objectives,
thereby providing a
basis for designing and
implementing audit
procedures.

Audit The selected audit 14.510 Compliance audit Financial

sampling sampling method audit
should be effective in
reaching the audit
objectives. When
designing the sample,
it is important to
establish what
constitutes an error, to
analyse and prepare
the population and
decide on a sample
size.

Control risk Where control risk is 14.150 Compliance audit Financial

likely to be high, the audit
auditor should mostly
obtain the required
assurance from
substantive testing, as
reliance cannot be
placed on internal
controls.

Designing The objective of the 14.210 Compliance audit Financial

audit auditor is to obtain audit
procedures sufficient appropriate
audit evidence about
assessed risks through
Page Summary Reference Applies To

designing and
implementing
appropriate responses
to those risks.

Detection risk Detection risk relates 14.160 Compliance audit Financial

to the nature, timing audit
and extent of the
auditor’s procedures
that are determined by
the auditor to reduce
audit risk to an
acceptably low level.

Inherent risk Inherent risk is 14.130 Compliance audit Financial

estimated by the audit
auditor, based on
his/her understanding
of the entity and its
environment.

Task plan and The task plan (TP) and 14.310 Compliance audit Financial
audit the audit programme audit
programme (AP) together describe
how the audit will be
performed in order to
meet its objectives.

Understandin When designing steps 14.140 Compliance audit Financial

g internal and procedures the audit
control auditor should
evaluate the entity's
internal controls and
assess the risk that the
control system might
not prevent or detect
material deviations.

Understandin Auditors acquire an 14.120 Compliance audit Financial

g the entity understanding of the audit
and its entity so as to have a
environment frame of reference
within which to plan
and perform the audit
and to exercise sound
Page Summary Reference Applies To

professional judgment.

Planning a financial audit

AWARELINE
PAGES

Page Summary Reference Applies To

Abbreviation Abbreviations can 18.280 Compliance audit Financial

s help to keep texts audit Opinion Performance
shorter and more user- audit Review
friendly, but they can
also make the text off-
putting for the non-
expert reader. They
should make the text
easier to read, not
simply easier for
drafters to write.

Accounting The auditor should 26.400 Financial audit

estimates obtain sufficient,

relevant and reliable
audit evidence about
whether the
accounting estimates
and related
disclosures in the
financial statements
are reasonable in the
context of the
applicable financial
reporting framework.
Page Summary Reference Applies To

Analytical The objective of the 16.232 Compliance audit Financial

procedures auditor is to apply audit

analytical procedures
where appropriate to
help in assessing risk,
providing audit
evidence, and arriving
at an overall audit
conclusion.

Assurance Assurance can be 12.900 Compliance audit Financial

engagement either reasonable or audit

limited. The level of

assurance that can be
provided to the
intended user should
be communicated in a
transparent way.

Assurance The ECA’s assurance 14.170 Compliance audit Financial

model model is based on the audit

audit risk model

taking due
consideration of the
particular
characteristics of the
ECA’s audit
environment.

Audit The audit teams 16.210 Compliance audit Financial

evidence obtain sufficient, audit Performance audit Review
relevant and reliable
evidence. Sufficiency
is the measure of the
quantity of audit
evidence, relevancy is
the ability to answer
the audit objective or
assertion and
reliability relates to
credibility and
consistency.
Page Summary Reference Applies To

Audit The interview is a 16.340 Performance audit Compliance

Interview data gathering audit Financial audit
technique aimed at
obtaining quantitative
and qualitative
information. It can be
used to elicit
facts/opinions of the
persons involved in a
particular programme
regarding its context,
implementation,
results or impact.

Audit risk The objective of the 14.110 Compliance audit Financial

and risk auditor is to identify audit

assessment and assess the risks to

procedures the audited entity not
meeting its objectives,
thereby providing a
basis for designing
and implementing
audit procedures.

Audit The selected audit 14.510 Compliance audit Financial

sampling sampling method audit

should be effective in
reaching the audit
objectives. When
designing the sample,
it is important to
establish what
constitutes an error, to
analyse and prepare
the population and
decide on a sample
size.

Auditee data Auditee’s data 16.320 Compliance audit Financial

collection (databases, audit Performance audit Review
documents) are an
important source of
audit evidence. We
Page Summary Reference Applies To

ask only for data we

need. Our requests are
within our mandate.
We protect data in our
custody.

Auditing in Standards and 19.200 Compliance audit Financial

times of crisis guidance applicable to audit Performance audit
or emergency our audits in times of
crisis or emergency.

Charts Charts should be used 18.341 Compliance audit Financial

to show an explicit audit Performance audit Review
message by allowing
the reader to see the
numbers, trends,
patterns, relationships
and exceptions in the
data.

Clearing Process by which the 16.400 Compliance audit Financial

auditors confirm the audit

accuracy of the
findings with the
auditee, focusing on
those likely to be
included in the audit
report.

Communicati Effective 12.500 Financial audit Compliance

on in audit communication binds audit Performance audit Review
all staff in a common
goal and enhances
efficiency, increases
motivation, and leads
to satisfaction in work
done well.

Communicati Effective and efficient 12.510 Compliance audit Financial

on skills for communication is a audit Performance audit Review
auditors core competence for
Page Summary Reference Applies To

individual auditors.

Comparative The auditor should 28.450 Financial audit

information obtain sufficient

appropriate audit
evidence about
whether the
comparative
information included
in the consolidated
annual accounts
complies, in all
material respects, with
the applicable
financial reporting
framework.

Control risk Where control risk is 14.150 Compliance audit Financial

likely to be high, the audit

auditor should mostly

obtain the required
assurance from
substantive testing, as
reliance cannot be
placed on internal
controls.

Cooperation The cooperation with 12.800 Compliance audit Financial

with Supreme Supreme Audit audit Performance audit Review
Audit Institutions brings
Institutions benefits in the longer
term, through sharing
audit methodologies
and practices.

Copyright Unless we have the 18.343 Financial audit Compliance

appropriate audit Performance
authorisation, or when audit Review Opinion
the copyright notice
states otherwise, we
should not use
images, graphs,
Page Summary Reference Applies To

photographs, symbols,
music, videos etc.
sourced externally.

Counter- When the auditee 18.550 Compliance audit Financial

replies chooses to maintain audit Performance audit Review
replies which are
unacceptable to us,
we have the option of
including a counter-
reply.

Designing The objective of the 14.210 Compliance audit Financial

audit auditor is to obtain audit

procedures sufficient appropriate

audit evidence about
assessed risks through
designing and
implementing
appropriate responses
to those risks.

Detection risk Detection risk relates 14.160 Compliance audit Financial

to the nature, timing audit

and extent of the

auditor’s procedures
that are determined by
the auditor to reduce
audit risk to an
acceptably low level.

Documenting Audit documentation 16.500 Performance audit Financial

an audit should enable an audit Compliance
experienced auditor, audit Review Opinion
who has had no
previous connection
with the audit, to
establish and
understand the
evidence that supports
the auditors'
significant
Page Summary Reference Applies To

judgements and
conclusions.

Drafting a Our reports should be 18.110 Compliance audit Financial

report objective, complete, audit Performance audit Review
clear, convincing,
relevant, accurate,
constructive and
concise. We draft
them for the attention
of an interested but
non-expert reader.
The report-writers
have to follow a set of
drafting instructions.

ECA types of The ECA publishes 12.130 Financial audit Compliance

audit the results of its audit audit Performance audit
work in a variety of
products, depending
on the type of audit
and legal obligations.

Emphasis of The auditor should 18.450 Financial audit Compliance

matter and include clear audit

other matter additional information

in the auditor’s report
to draw users’
attention to a matter,
which may be
relevant to the
understanding of the
annual accounts, the
underlying
transactions or the
audit.
Page Summary Reference Applies To

Ensure, Avoid ensure, 18.262 Compliance audit Financial

continue, continue and consider audit Performance audit
consider in recommendations.
recommendat
ions

EU budget The EU budget can be 12.400 Compliance audit Financial

management managed in three audit Opinion Performance
modes different ways: audit Review
directly by the
European
Commission, jointly
by the European
Commission and
national authorities, or
indirectly by other
bodies inside or
outside the EU.

Evaluating The auditors should 26.700 Financial audit

tests results analyse the errors

identified and
consider whether the
audit evidence
enables them to reach
a conclusion about the
population

Examples Examples can enliven 18.320 Compliance audit Financial

our reports. They audit Performance audit Review
should be used
sparingly, sound,
clearly written,
limited to the point in
question and not be
overly detailed.

External The objective of an 26.500 Financial audit

confirmations auditor when using

external confirmation
procedures in
response to an
Page Summary Reference Applies To

assessed risk of
material misstatement
is to design and
perform such
procedures to obtain
relevant and reliable
audit evidence.

External We shall determine 16.520 Compliance audit Financial

experts whether to use the audit Performance audit Review
work or advice of
experts and whether
their input is adequate
for the purposes of the
task. When using
external expertise, we
remain responsible for
the conclusions.

Financial The EU institutions 22.200 Financial audit

reporting follow the accounting

framework rules derived from the
International Public
Sector Accounting
Standards (IPSAS).

Follow-up We follow up the 16.600 Compliance audit Financial

recommendations, audit Performance audit
and where appropriate
findings and
conclusions, in our
audit reports, and
publish the results of
this work.

Footnotes Footnotes and 18.330 Compliance audit Financial

endnotes refer audit Opinion Performance
interested readers to audit Review
source documents or
to additional
information directly
Page Summary Reference Applies To

related to our text.

Form of the In the Statement of 18.400 Financial audit Compliance

Statement of Assurance the ECA audit

Assurance provides an opinion

on reliability of the
accounts and legality
and regularity of
underlying
transactions.

Forming an The auditor shall form 28.400 Financial audit

opinion in an opinion on whether

financial the financial
audit statements are
prepared, in all
material respects, in
accordance with the
applicable financial
reporting framework.

Fraud We consider and 12.700 Compliance audit Financial

consideration document the risk or audit Performance audit
s in audit suspicion of fraud
throughout the audit
process, notify the
hierarchy and the
legal service, and
report as appropriate.

Glossary The glossary helps 18.270 Compliance audit Financial

non-expert readers to audit Opinion Performance
understand our audit Review
reports. Drafters
should liaise with the
termbase team early
on in the process to
obtain clear
explanations of terms
which are consistent
across reports.
Page Summary Reference Applies To

Headings Headings help readers 18.310 Compliance audit Financial

by dividing the text audit Performance
into logical sections, audit Review Opinion
and signposting the
content of the
paragraphs that
follow. We commonly
use evaluative
headings in the
Observations section
or its equivalent in
our reports.

How to use AWARE applies to all 01.001 Compliance audit Financial

AWARE audits, reviews, audit Opinion Performance
opinions conducted audit Review
by the ECA as
indicated in each
section.

Independent Independent quality 12.620 Compliance audit Financial

quality review consists of audit Opinion Performance
review checks on audit Review
presentation, and an
objective assessment
of audit evidence (or
key elements for
reviews and
opinions), including,
for draft reports, the
way significant
judgements were
made and conclusions
reached.

Information IT audit at the ECA 16.700 Compliance audit Financial

technology concerns auditing IT audit Performance audit
(IT) audit systems of EU
institutions and
Member States
involved directly or
indirectly in the
management of EU
Page Summary Reference Applies To

funds.

Inherent risk Inherent risk is 14.130 Compliance audit Financial

estimated by the audit

auditor, based on
his/her understanding
of the entity and its
environment.

Key audit The auditor shall 28.430 Financial audit

matters determine key audit

matters and
communicate them in
the audit report as
well as comment on
the supplementary
and other information
presented by the
audited entity.

Materiality The concept of 14.410 Compliance audit Financial

materiality is applied audit

by the auditor in
planning and
performing the audit,
and in evaluating the
effect of identified
misstatements or non-
compliance on audit
conclusions

Modified Material 18.430 Compliance audit Financial

opinion misstatements or non- audit

compliance and/or
lack of sufficient
appropriate audit
evidence can lead to a
modified opinion. The
auditor should
describe the basis for
modification.
Page Summary Reference Applies To

No piecemeal The auditor should 18.440 Financial audit Compliance

opinions give an opinion on the audit

accounts and the

underlying
transactions as a
whole.

Non-textual Carefully chosen and 18.340 Compliance audit Financial

data well-designed audit Opinion Performance
diagrams, tables, audit Review
graphs and other non-
numeric graphics
(flow charts,
organisation charts,
maps and
photographs…)
enhance the clarity
and readability of
published reports.

Notification We inform the 16.100 Compliance audit Financial

principal auditee(s) audit Performance audit Review
about the audit. We
timely notify visits to
the auditee and except
for audits concerning
EU bodies, we inform
the Supreme Audit
Institution about all
on-the-spot visits to
their Member State.

Numbers and Authors should apply 18.350 Financial audit Compliance

monetary the rules for audit Performance
symbols presenting numbers audit Review Opinion
and using symbols
consistently.

Objectives of The auditor should 22.100 Financial audit

reliability obtain reasonable

audits assurance about the
financial statements to
Page Summary Reference Applies To

form its opinion about

the reliability of the
accounts by using
assertions.

Progress Progress report is 16.901 Compliance audit Financial

report prepared to inform the audit Performance audit
chamber on the
progress of tasks
taking significant
resources and time.

Quality Quality assurance 12.610 Performance audit Financial

assurance work assesses audit Compliance audit Review
whether audit and
review methodology
and quality control
procedures are
relevant, adequate and
applied effectively.

Quality The ECA has a 12.600 Compliance audit Financial

management system of quality audit Opinion Performance
system management in order audit Review
to comply with
professional standards
and applicable
regulatory
requirements, and
issues high quality
reports.

Recommenda Recommendations 18.260 Performance audit Compliance

tions should be made audit Financial audit
regarding changes to
address serious
deficiencies reported,
where the audit
observations have
demonstrated the
potential for
significant
Page Summary Reference Applies To

improvement in
operations and
performance

Recommenda The aim when 18.263 Compliance audit Financial

tions in the drafting such audit Performance audit
absence of recommendations is
existing to ensure that the
regulations substance of the
recommendations is
taken on board and
acted upon by the
auditee, while not
prejudicing future
legislative proposals
or decisions.

Recommenda Whenever 18.261 Compliance audit Financial

tions to appropriate, in audit Performance audit
Member particular in audits in
States shared management,
the recommendations
may be addressed to
Member States (or
even to a specific
Member State or MS
authority).

Red flags A red flag indicates 12.750 Compliance audit Financial

suggesting a the risk of a possible audit Performance audit
fraud fraud or corruption. It
is an element or a set
of elements that are
unusual by nature or
vary from normal
activity. It is a signal
that something is out
of the ordinary and
needs to be examined
further.

Related The auditor should 26.600 Financial audit

Page Summary Reference Applies To

parties obtain audit evidence

regarding the
identification and
disclosure by
management of
related parties and the
effect of material
related party
transactions.

Report style We write reports for 18.120 Compliance audit Financial

the attention of an audit Performance
interested but non- audit Review Opinion
expert reader. Our
reports should be
drafted in an
accessible,
understandable,
persuasive, clear and
consistent style. These
principles partially
apply also for drafting
of clearing letters.

Standard List of all externally 19.100 Compliance audit Financial

timeframes and internally audit Performance audit Review
applicable to established
ECA audits timeframes applicable
to the ECA's audits.

Subsequent Subsequent events 26.800 Financial audit

events may require

adjustment of, or
disclosure in, the
financial statements,
or may have impact
on the auditor’s
report. The auditor
should obtain
evidence on events
occurring between the
balance sheet date and
Page Summary Reference Applies To

the auditor's report.

Substantive The auditor designs 16.230 Compliance audit Financial

procedures substantive audit

procedures to be
responsive to the
related risk
assessment (e.g. risk
of material
misstatement or non-
compliance).

Supervision Supervision and 16.900 Compliance audit Financial

and review review involve audit Performance
overseeing and audit Review Opinion
checking work done,
and documents
prepared during all
phases of a task. The
aim is to provide
assurance on the
quality of work done
and documents
presented for
approval.

Supplementa The auditor may need 28.440 Financial audit

ry and other to comment on

information supplementary and
other information that
is not required by the
applicable financial
reporting framework
but which the audited
entity chooses to
present together with
the annual accounts.

Task plan The task plan (TP) 14.310 Compliance audit Financial

and audit and the audit audit

programme programme (AP)

together describe how
Page Summary Reference Applies To

the audit will be

performed in order to
meet its objectives.

Tests of The auditor shall 16.220 Compliance audit Financial

controls design and perform audit

tests of controls to
obtain sufficient
appropriate audit
evidence as to the
operating
effectiveness of
relevant controls.

Tests of Tests of details are 16.231 Compliance audit Financial

details substantive audit

procedures applied to
selected individual
items

The ECAs ECA auditors have 12.150 Financial audit Compliance

access rights right of access to any audit Performance audit
document or
information they may
need to undertake
their task.

The ECAs The ECA is 12.000 Performance audit Financial

commitment committed to ISA and audit Compliance audit
to the ISSAI standards and
international codes of ethics.
auditing Consequently, its
standards auditors respect the
and codes of ECA’s audit policies
ethics and standards and
carry out audits in a
professional manner.

The no The approach 12.300 Compliance audit Financial

surprises whereby we keep our audit Performance audit Review
approach auditees fully
Page Summary Reference Applies To

informed of our audit

plans, work progress
and results.

Understandin When designing steps 14.140 Compliance audit Financial

g internal and procedures the audit

control auditor should

evaluate the entity's
internal controls and
assess the risk that the
control system might
not prevent or detect
material deviations.

Understandin Auditors acquire an 14.120 Compliance audit Financial

g the entity understanding of the audit

and its entity so as to have a

environment frame of reference
within which to plan
and perform the audit
and to exercise sound
professional
judgment.

Unmodified The auditor shall 18.420 Compliance audit Financial

opinion express an audit

unmodified opinion in
financial audit when
the financial
statements are
prepared in
accordance with the
applicable financial
reporting framework
and in compliance
audit - when the
underlying
transactions are legal
and regular.

Using Economic statistics 18.342 Financial audit Compliance

economic are essential for
 Page Summary Reference Applies To

statistics in providing background audit Performance audit Review

reports and context for the
subjects of ECA
products. When used
well, relevant
economic statistics
help the reader to
better understand the
topics of our audits.

Work of Work of other auditor 16.510 Compliance audit Financial

other including internal audit Performance
auditors audit may be used in audit Opinion
planning and
examination phase of
the audit. The auditor
should perform
appropriate
procedures to
determine reliability
of such evidence.

Written The auditor shall 26.300 Financial audit

representatio obtain written

ns acknowledgment by
management of its
responsibilities and,
where appropriate,
specific written
representations of
particular assertions.

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