The evolving role of supreme auditing institutions (SAIs) towards enhancing environmental governance

Figures & data

Table 1. Significant developments towards including environmental auditing in audits conducted by SAIs (INTOSAI WGEA 2019:10–11)

Focus	Significant developments (since previous surveys)
Auditing Mandate (Chapter 1)	Almost half of SAIs had legislative mandates specifically referring to environmental auditing. The majority had legislative mandates to conduct performance (93%), compliance (88%) and financial audits (87%) on environmental issues.
Environmental Audits (Chapter 2)	Performance audits were the most common type of environmental audits with almost half of the respondents also conducting financial audits. Nearly half of responding SAIs (48%) indicated plans to increase environmental audits.
UN – SDGs (Chapter 3)	The Sustainable Development Goals (SDGs) were a high priority in strategic work plans of many SAIs (68%). Almost half of SAIs (48%) mentioned the impacts of UN 2030 Agenda for Sustainable Development on their audits and 51% conducted audits thereon.
Impacts of Environmental Audits (Chapter 4)	Almost all SAIs had measured the impact of environmental audits and 72% did follow-up audits and monitored implementation of recommendations/findings. 73% of SAIs tracked implementation of recommendations by follow-up audits.
Environmental Auditing Capacity (Chapter 5)	More than half (55%) of SAIs had specific a department or section working full-time on environmental audits. On average 1.63% of auditors (compared to all employees in each country) worked full time on environmental audits. On average 28% of auditors had an environmental degree with almost 30% having previous environmental experience.
Cooperation between SAIs (Chapter 6)	65% of the SAI respondents indicated experience in cooperation with another SAIs and most SAIs were involved in exchange of information. Lack of resources was the main barrier for other SAIs to get involved in cooperative audits.

Table 2. Environmental inclusion within public-sector audit types (Adapted from INTOSAI WGEA, n.d.)

Public sector audit type	Environmental inclusion focus during audit	Justification for inclusion
Regularity (financial) Audit	Included if: Environmental matters impact on financial statements Compliance with environmental laws and regulations Environmental pre-determined objectives	Obtaining sufficient and appropriate audit evidence to enable the auditor to express an opinion as to whether the financial information includes environmental matters that is free from material misstatements due to fraud and error.
Compliance Audit	Included if: A particular environmental matter is in compliance with authorities identified as criteria Activities, financial- and environmental transactions and information are in all material respects, in compliance with authorities which govern the audited entity.	To ascertain that the environmental rules, laws and regulations, budgetary resolutions, policy, established codes, agreed terms of the general principles governing sound public-sector financial and environmental management and conduct of public officials is conformed to.
Performance Audit Theme-driven focus	Included if: Evaluating the measures instituted by management to ensure that resources have been procured economically and are used efficiently and effectively and in an environmentally friendly manner.	Audit and report on whether interventions, programmes & institutions are performing in accordance with the principles of economy, efficiency, effectiveness, environmental sustainable manner. To answer key environmental questions and to provide recommendations to improve.
Combined audits^a/Other arrangements Particular to mandates, roles and responsibilities to manage and steer environmental governance	SAIs may carry out specific environmental audits or engagements on any subject relevant to the responsibilities of management and those charged with environmental governance and the appropriate use of public resources.	Audits may include reporting on environmental quantitative outputs, outcomes of the entity’s environmental service delivery activities, sustainability reports, future resource requirements, adherence to internal control standards, real-time audits of environmental or other matters.

aCombined audits incorporates financial-, compliance and/or performance aspects

Table 3. INTOSAI WGEA environmental audit survey responses selected focusing on the period 2004–2015 (Surveys 5–9)

Survey number and report date	Period covered	Survey distributed to INTOSAI members	Responses by INTOSAI members		Response rate (%)
Survey 9 (2018)	Jan 2015–Dec 2017	192	60		31%
Survey 8 (2015)	Jan 2012–Dec 2014	192	58		31%
Survey 7 (2012)	Jan 2010–Dec 2012	190	112		62%
Survey 6 (2009)	Jan 2007–Dec 2009	189	106		59%
Survey 5 (2006)	Jan 2004–Dec 2006	186	119		64%
Total		949	455
Average response rate				49,4%

Figure 1. Percentage responses related to whether environmental auditing falls within the legal mandate of SAIs

Figure 2. Percentage responses related to whether environmental auditing mandate has changed since the previous survey

Figure 3. Percentage responses related to audit types used to include environmental matters

Figure 4. Percentage responses related to environmental audit types (a) and total number of environmental audits conducted (b) by survey across all regions – average (5th–9th survey results)

Figure 5. Inputs from INTOSAI WGEA (Secretariats): Inclusion of environmental issues and risks within SAIs public-sector audit methodologies

INTOSAI WGEA. 2019. The 9th survey on environmental auditing. working group on environmental auditing. p. 10–11, 22 and 91. Jakarta (Indonesia): The Audit Board of the Republic of Indonesia. [accessed 2019 Nov 18]. https://www.environmental-auditing.org/media/113684/21a-wgea_visibility_18-sep-2019-rev.pdf

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INTOSAI WGEA. n.d. a. Surveys. INTOSAI WGEA website. [accessed 2019 Aug 12]. https://www.environmental-auditing.org/publication?tab=surveys

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