AUDIT CRITERIA Determining the Criteria Lesson Objectives Developing

AUDIT CRITERIA Determining the Criteria

Lesson Objectives • Developing audit criteria for each question related to the audit of water resources 3/8/2021 Audit Criteria 2

What is Criteria? • • • Environmental legislation/regulations Water management standards Performance management principles and Good practices Scientific research/Environmental reports Audit criteria is a set of reasonable and attainable standards of management, implement and performance. 3/8/2021 Audit Criteria) 3

Environmental Audit Criteria-1 • Criteria are used in order to assess the performance of the entity with respect to the subject examined (criteria are hidden in the questions – sub-questions those are based on problems ). • Our criteria can be the objectives and targets of the activity, project or program the entity is conducting; the practices of the entities displaying the best practice examples in that field; laws, regulations, guidelines and academic studies related to the field; or expectations of the clients. 3/8/2021 Audit Criteria 4

Environmental Audit Criteria-2 • Performance targets and indicators used in performance assessment are determined by entities and included in their strategic plans. • Audit criteria used in the environmental audits are formed by the team members with the help of the relevant stakeholders. • Provided that the performance indicators included in the strategic plan of the entity with respect to the audit subject are properly determined, they can be used as a source in the phase of criteria formation. 3/8/2021 Audit Criteria 5

Features of Criteria-1 • Reliability: Criteria should have the quality to be used by all auditors in the same field under the same conditions. • Objectivity: Criteria should be selected objectively without any effects and pressures. • Utility: Criteria should help users reach the desired findings and results. • Understandability: Criteria should be clear and understandable and should not lead to various interpretations. • Comparability-Validity: Criteria should be compatible with the criteria used in similar works conducted in the same or other entities. 3/8/2021 Audit Criteria 6

Features of Criteria-2 • Completeness: All criteria necessary for assessing the current performance in line with the current conditions should be formed. • Accessibility: The criteria determined should be accessible. • Acceptability: Criteria should be acceptable on the part of lawmakers, occupational organisations and other relevant parties. • Compliance and Compatibility: Criteria should comply with the structure and objectives of the audited entity. They should also be compatible with the features of the audited entity. 3/8/2021 Audit Criteria 7

Sources of Criteria • • • The following sources are used in developing the criteria: Laws and regulations Special arrangements concerning the entity Manuals, guidelines and other publications Generally accepted practices and principles Opinions of academicians and experts Publications of occupational organisations Standards implemented in public and private sectors Management and activity reports All kinds of audit reports Government policies, development plans etc. Good practice examples 3/8/2021 Audit Criteria 8

Sources of Criteria ( Environmental Audit) • • • National environmental legislation International environmental law International agreements that the county is a party to National Environment Strategy Environment Programs and Action Plans of Governments • Business processes and terms of reference related to environmental activities 3/8/2021 Audit Criteria 9

Audit Criteria There must be one criteria corresponding to each sub-question in the question pyramid. While deciding on the criteria, one should consider what the most appropriate and reasonable level of performance should be between the questions and process or transaction questioned. FORMATION OF AUDIT CRITERIA Main Question 3/8/2021 Question Question Question Criterion Criterion Audit Criteria 10

Exercise Audit Criteria 3/8/2021 11

EXERCİSE: Determine audit criteria for each problem you detected with respect to the audit of water resources. 3/8/2021 Denetimin Planlanması (Kriterlerin Belirlenmesi) 12