Presentation by M. Salgrāve (English), Regional Conference for Supreme Audit Institutions of the European Neighbourhood South Region, June 2018

1. © OECD
Regional Conference for Supreme Audit Institutions of the
European Neighbourhood South Region
Initiatives and experiences with
stakeholder engagement
during audit processes
Marita Salgrave, Strategic Advisor to Auditor General,
State Audit Office, Republic of Latvia
June 21, 2018
Tunis, Tunisia

2. © OECD
Agenda for discussion
 Stakeholder engagement vis-a-vis achievement of
SDGs
 Who our stakeholders are?
 Principles for stakeholder engagement
 Examples of stakeholder engagement in different
audit phases
 Raising awareness of, education of and reporting to
stakeholders as one of the most important priorities
of any SAI

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Stakeholder engagement vis-a-vis achievement of SDGs
Following the same «path» of ISSAI 12, while
accepting that we live in a fast changing and digital
world, which requires constant evolving and
adaptation

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Whom we consider as our stakeholders?
 Citizens
 Legislator
 Executive (audited
entities, government
overall)
 Law enforcement
agencies
 NGOs and expert
associations
 Media AS A CHANNEL
 SAI’s staff
that can affect or can be
affected by the actions,
objectives and policies
of government and
public sector entities
(ISSAI 12)

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Stakeholder engagement – 7 MUSTs (ISSAI 12)
① Become familiar with stakeholders - contribute to
their knowledge understanding of the role and
responsibilities of the SAI as an independent auditor
of the public sector
② Educate stakeholders - contribute to their
awareness of the need for transparency and
accountability
③ Find out about the expectations of stakeholders and
respond to these without compromising your
independence
④ Report to stakeholders - ensure they understand
the SAI’s audit work and results

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Stakeholder engagement – 7 MUSTs (ISSAI 12) (cont.)
⑤ Use media as interlocutor in communication with
citizens
⑥ Recognise the different roles of stakeholders and
consider their views, without compromising your
independence
⑦ Obtain regular feedback to see whether your
message has been understood by stakeholders

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Communicating effectively with stakeholders – what’s
next?
 Principles described by ISSAIs
 Methods depend on circumstances at the national
level (SAI’s mandate, legal and regulatory
framework, values and culture, etc.)

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SAI’s processes with stakeholder engagement
 Organization and management
 Strategic and operational planning
(including selection of audit topics)
 Auditing –
- Planning
- Conducting
- Reporting and communicating audit results
 Audit follow-up / roll-out of results

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Stakeholder engagement –
tendencies and example initiatives in audit process
«Become familiar with
stakeholders …»
SAI’s organization and management
Examples of opportunities -
 Establishment of «Public» or «Consultative» Council of the SAI
comprising respected individuals and opinion leaders
 …
 Benefits – getting more insight in audited areas from committed
partners; «channelling» of positive and opinion-leader messages
about SAI to their sectors; learning how to better approach SDG issues
in given sectors

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Stakeholder engagement –
tendencies and example initiatives in audit process
«… find out about the expectations of
stakeholders and respond to these …»
SAI’s strategic and operational planning
Examples of opportunities -
 Invite «organized» stakeholders (e.g. parliament, executive, law
enforcement agencies) to share risky areas and topics
(!independence)
 Invite other stakeholders (e.g. NGOs – business associations, sectoral
associations, academia, individual citizens) to share their identified
risks, assumptions via an interactive homepage
 Use the chance to «market» systemic performance audits as ones
facilitating achievement of SDGs
 …

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Stakeholder engagement –
tendencies and example initiatives in audit process
«Become familiar with and educate stakeholders;
recognise the different roles of stakeholders»
Audit planning
Examples of opportunities -
 Questionnaires to specific target groups with tailored questions to
further clarify risks
 Meetings with NGOs to find out different views and potential
solutions
 …
+
Going beyond requirements of ISSAIs in communication with executive
(audited entities) – meeting all governance levels – TCWG, ministers,
mayors, senior and middle level officials

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Stakeholder engagement –
tendencies and example initiatives in audit process
«Recognise the different roles of stakeholders»
Conducting audit
Examples of opportunities -
 Questionnaires to specific target groups with tailored
questions to enhance audit evidence
 Involve academia and other experts as technical support to
audit groups in complex audits
 …

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Stakeholder engagement –
tendencies and example initiatives in audit process
Reporting and communicating audit results
Does a digital world require other methods for talking
to (engaging) stakeholders, who are already
overwhelmed with information?
 Simplifying our “product” (audit reports)
 Innovative approaches to selling our “product” (audit
reports) to diverse audiences

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Simplifying our “product”
How to get an easy
audit report?
Write «Motivation» and
Executive summary» as a
«story»
Use photos and pictures as
evidences
Use graphical information
Use pictograms
Structure the report I – core
conclusions as headings – further text as
easy explanation with references in
footnotes and annexes
Produce short videos to
visualize the report

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Simplifying our “product” - visualization

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Simplifying our “product” – video reports

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Simplifying our “product” – leaflets, «single pagers»

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Selling our “product” to diverse stakeholders
 Legislator - «Imposing» regular meetings, presenting SAI’s
products in a simple manner
 Executive - recognizing diverse audiences, visiting «highest» levels
in vase of potential conflicts, sharing best practices
 Sectoral experts and NGOs - participate in panel discussions
initiated by them, involve them as experts in complex audits
 Citizens i.a. via media – press releases – always; press
conferences, where relevant; answer all letters / complaints, try to
agreeing to ALL interviews, TV debates media request, diversify
communication channels (interactive homepage,
), try to meet with people personally

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Selling our “product” to diverse stakeholders

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Selling our “product” to diverse stakeholders
Citizens (cont.)
Twitter (@Vkontrole)
N.B. A message «living time» is around 3-4 hours; our reaction time must
be 1-2 hours
TWEET RETWEET DISCUSSION

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Conceptualizing and «rolling-out» audit results –
Discussion Papers
Sometimes we realize that:
 we are “restricted by areas or audited entities” when
performing separate audits
 Identified weaknesses are a part of a more conceptual
issue
 Implementation of recommendations lie beyond the
mandate of particular audited entity

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Enhanced stakeholder engagement –
our contribution to achievement of SDGs
Informed citizens become our supporters and partners
Only the citizens can «motivate» public service to do a
fair and good job
Fair and good job by governments –
2030 Agenda for Sustainable Development might be
implemented

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Thank you for your attention!

24. © OECD
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State Audit Office
Republic of Latvia
Member of EUROSAI Governing Board
Member of INTOSAI FIPP
www.lrvk.gov.lv
of the Republic of Latvia

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