Auditors Registration System

Public Oversight and Quality Assurance Systems WorkshopDecember 15 – 16, 2009

Auditors Registration System

» What is it?

» Why is it necessary?

» How is it done?

» What is the process?

» Issues to resolve

» Discussion points

What is it?

» Listing of Auditors in a Country• Statutory Auditors and Audit Firms• Supports auditor regulation and inspection• May be broader than public interest entity audits and

auditors

» Accessible to public• Electronic form• Accessible on Internet

» Managed by profession and/or regulator

Why is it necessary?

» Statutory Audit Directive of European Parliament

• Operational by June 30, 2009

• Detailed requirements

How is it done?

» Software solution

• Custom development

• Packaged software

What is the process?

» Requirements analysis

» Request for proposal

» Select vendor

» Develop / install and test

Requirements analysis

» Basic requirements• Firms• Individual auditors• Clients (public interest entity)

» Additional requirements• Support auditor regulation and inspection• Support audit professional association “business”• Support auditor training

» Country requirements• Language• Specific legal and other requirements

Opportunity for multi-country solution

» Common core software• Core system to meet common objectives

» Unique country requirements• Additional modules to meet unique country objectives

» Language

» Potential for cost savings?

Request for proposal

» Document to communicate with prospective vendors• Input from professional association• Input from profession regulatory / oversight body

» Detailed enough to enable prospective vendors to understand general requirements• Not as detailed as a system design• Allow vendors to propose a custom or packaged solution

Request for proposal

» Identify evaluation criteria• Core businesses, years in business, financial stability• Qualification, including prior assignments• Technical and managerial capabilities• Qualifications and relevant experience of key staff

» Communicate through World Bank procurement system• Internet• Specific identification of potential vendors

Select vendor

» Influenced by extent of response

» Evaluation of qualifications

» Short list

» Negotiate detailed terms, including price

Develop / install and test

» Detailed involvement of local profession and regulator

» Influenced by extent of “extra” functionality

» If multi-country, which country goes first?• First installation will be a “pilot”• Subsequent installations should be easier and faster

Issues to resolve

» Intellectual property rights

» Maintenance and support

Discussion points

» Commonality of objectives• Compliance with Statutory Audit Directive• Support profession• Support regulator

» Extent of country uniqueness• Size• Language• Organization of profession• Regulator activities

» Advantages and disadvantages• Cost• Timeline• Consistency• Other