The PSC Audit Manual

The Public Service Commission's (PSC) new audit manual provides its auditors with a rigorous and systematic approach to quality auditing. Beginning with the selection process to determine which audits to conduct, and following with the various phases of audit - planning, examination, reporting and follow-up - the PSC Audit Manual sets out the policies and framework to govern the conduct of all audits and studies performed by the PSC's Audit Branch.

The challenge in developing the PSC Audit Manual was two-fold - first, to develop audit policies that were consistent with current professional auditing standards, and second, to ensure that following these policies and guidance would permit the PSC to achieve its audit mandate.

A rigorous process was followed to address this challenge. Extensive research and consultation was conducted into the standards and best practices of other legislative audit offices, audit standards-setting bodies and other disciplines. The PSC also looked inward, interviewing senior managers for their insights into the organization's new oversight role.

PSC audit methodology emphasizes the importance of conducting audits within a quality management system. It builds a 'quality chain' into PSC audits with a process that includes challenge, review, consultation, advice and good project management.

An external review of the PSC Audit Manual concluded that, when followed, the manual will permit the PSC to achieve its audit mandate and meet the standards for compliance and performance auditing in the public sector.

The PSC Audit Manual also includes the PSC Audit Code of Professional Conduct, to complement the Values and Ethics Code for the Public Service. This code addresses key ethical issues for auditors, such as independence, objectivity and avoiding conflict of interest, and adds to the professional discipline required in the conduct of PSC audits.

In January, PSC auditors were given extensive training on the PSC Audit Manual, its audit policies and framework, allowing the PSC to put its new manual to work immediately.

The PSC Audit Manual will be available on the PSC Web site soon.