EUROSAI. Magazine N26 - 2021

Magazine No. 26 - 2021 89 Studies and other articles by taking into account the materiality level determined depending on the purpose and object of the audit. In the case of audit approaches, a kind of development history can be drawn, for which the interpretation of the current role, the external environment – for example: digitalisation, COVID 19 pandemic both have an effect. The interpretation of the role - the purpose and way of utilizing the work of the SAO - influences the tool used, thus the audit approach. For example, a shift from the function of searching for mistakes to an advisory role has led to a shift towards a narrower audit focus, which means a riskbased audit assessment in which case the audit focuses on the most significant or riskier areas. Narrowing the scope of audits, prioritizing key areas and the interrelation of audits with different audit approaches will contribute to a more efficient use of capacity, improving the quality and economy of audits, which is also a public finance objective. The shift towards mass audits will also help to achieve an increase in audit coverage as a strategic goal. Among its audits, the SAO performs monitoring, risk-based and detailed audits, which differ in their level of details due to their purposes. The primary consideration in selecting the appropriate audit approach is utilization way and maximisation, so that those audit approaches should be chosen which is expected to provide the greatest added value in a given area. In this present article, we wish to present the characteristics of a monitoring-type audit approach. Importance of monitoring type audits As mentioned at the beginning of the article, a significant part of the potential audited circle faced a much greater burden in defense against the pandemic. It is true not only for the health sector that the stability of the system is needed more than ever, but also for other organizations performing public tasks. We can mention examples including local governments. They probably don’t come to mind when we think of institutions that play a key role in defense, but at the same time, the epidemic situation has placed a huge burden on them. Local governments perform a number of tasks that affect thousands of local residents, for example they provide social benefits, deal with business and vehicle issues, the importance of which has increased during the crisis. In this situation, the integrity and regular, transparent operation of local governments is of paramount importance. In addition to local governments, the role of local government institutions can be mentioned, as in many cases they operate nurseries, kindergartens and other social institutions. Institutions with a public function of care for the elderly or education, but not belonging to the public sphere, were also exposed to the pandemic. The breach of trust in them was perceptible, so the presence of the SAO became indispensable. Of course, we could give a lot of examples from the institutional circle, which were greatly affected by the pandemic, but the question was more about how the SAO performs its task without obstructing institutions and organizations with a strategic function in defense in the performance of their work, at the same time providing adequate assurance to the proper functioning of these institutions. In response to this dilemma, the SAO applied the monitoring audit approach. From the second half of 2020, the SAO carries out monitoring-type audits. According to the wording of the second semester 2020 audit plan, the monitoring audits - focusing on the relevant documents of the current situation - will strengthen the SAO's advisory role with real-time evaluation and recommendations for the future. The monitoring audits will strengthen the SAO's advisory role with real-time evaluation and recommendations for the future During the monitoring audit, the SAO evaluates a small number of documents provided by all the organizations of the audited group operating in the same legal environment, which are relevant to the audited area, therefore the audit coverage can be significantly increased with the monitoring audits. Monitoring audits burden the audited organizations more moderately, the amount of data provided is significantly lower compared to more detailed audits, the audit is shorter in duration and nonstationary, all of which increases the efficiency of the audit. The monitoring audits provide a comprehensive picture of the previously not audited areas, the change of the already audited area, the direction of the change, the results of the audit can henceforth form the basis of further more detailed audits.