Compliance audit

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The purpose of a compliance audit is to ensure that the central government has complied with legislation, other regulations and guidelines issued by the authorities. NAOF determines whether the activities being audited comply with the state budget, the principles of good governance, the goals set, as well as financial and contractual terms and conditions.

The compliance audit provides decision-makers with information about whether the laws, other provisions and the principles of good governance have been complied with, and whether regulation has produced the desired results. Compliance audits are conducted in conjunction with financial audits and as separate compliance audits. NAOF conducts 2–4 compliance audits every year.

Compliance audit reports

Scope of compliance audits

Key themes of compliance audits include transfers of funds, revenue, procurement and compliance with the budget. The perspective of central government finances is a central part of compliance audits. The entity being audited is determined based on whether it is studied from the perspective of correct and sufficient information, compliance with the budget or the principles of good governance.

Compliance audits are conducted for themes that:

  • are significant in terms of the state budget.

  • are significant in terms of the state’s financial position in the short and long term.

  • have an operational risk that emphasises the viewpoints of legality and appropriateness.

  • are significant in terms of decisions-making on central government finances and the exercise of legislative power.

Themes assessed to be significant are selected for auditing according to whether they involve any breaches of regulations, inappropriateness of government activities or errors in compliance with the budget and, above all, according to their impact on decision-making processes.

Guidelines for compliance audits and quality assurance

Compliance audits are based on NAOF’s audit guidelines issued on the basis of section 20 of the Act on the National Audit Office. NAOF applies the ISSAI standards of the International Organization of Supreme Audit Institutions (INTOSAI) to these audit guidelines.

NAOF has also defined quality requirements for its audit guidelines. Quality is ensured by means of risk analyses, audit plans, audit process management and the evidence, clarity and uniformity of statements issued on audit reports.

Further information

Finnish Constitution

Act on the National Audit Office (in Finnish)