On 18 December, the EUROSAI Working Group on Municipality Audit (WGMA) hosted its 5th master class, focusing on “Methodological issues in municipality auditing: Sampling for determining the audit scope”. The event, held online, welcomed audit professionals from 15 supreme audit institutions (SAIs) whose mandates include municipal audits, attracting over 100 participants for a dynamic exchange of ideas.
The master class showcased case studies from SAIs of Bulgaria, SAI Israel, and SAI Lithuania, highlighting practical applications of sampling techniques in all three types of audits (financial, compliance and performance) which is a critical task that directly affects the quality and reliability of the work performed by SAIs.
SAI Bulgaria presented audit sampling methods in financial and compliance audits of municipalities, with examples of risk – based and statistical approaches applied to budget management, public procurement, and property management.
SAI Lithuania illustrated a performance audit sampling method through the audit "Use of Appropriations for Education". This audit assessed salary allocations and appropriations for state and municipal schools, showcasing how sampling parameters and methods supported key findings.
SAI Israel shared insights into a three-tiered methodology for selecting auditees, using data analysis and a computerized system to balance selections and align them with audit types and workloads.
Opening remarks of the master class were delivered by Mr. Matanyahu Englman, State Comptroller of Israel and EUROSAI President, who emphasized the importance of collaboration and knowledge sharing in municipal auditing practices across the EUROSAI community.
The event concluded with a discussion session, allowing participants to exchange experiences and deepen their understanding of effective audit sampling techniques.
Materials:
- The SAI of Bulgaria presentation
- The SAI of Israel presentation
- The SAI of Lithuania presentation
- Final Agenda
