Page 27 - 4. Pre-Course Reading-Training on Forestry Audit 2019

Chapter 3: Auditing Forest

Chapter 3: Auditing Forest

This chapter sets down the basic issues underlying a forest GIS can be used in both planning and conducting the audit.
management audit. It explains different types of audits, GIS-derived information can be used to precisely identify the
the tools and methodology used, as well as issues around area of the forest that will be used for field observations, to
choosing and designing an audit. This chapter is designed to locate any deforestation, to investigate illegal logging, and to
help SAIs to tailor and conduct an audit that best suited their assess forest fires and illegal land use.
specific circumstances.

Global Positioning System
3.1 ISSUES The Global Positioning System (GPS) is a Global Navigation 27
Satellite System (GNSS) developed by the United States
Department of Defense. It uses a constellation of between
Types of audit
24 and 32 Medium Earth Orbit satellites. These satellites
As with all environment-related audits, a forest audit can consider transmit precise microwave signals that enable GPS receivers
financial and compliance issues as well as performance issues. to determine their current location, the time, and their velocity
Its approach is no different to the audit approach commonly (including direction).
practiced by all SAIs, and it encompasses all types of audit.
In a forest audit, GPS precisely locates the area of the forest
In the specific context of forest management, however, particular that is to be audited. An example of the use of GIS and GPS in
attention may be devoted to aspects like the disclosure of forest a forest audit can be seen in Appendix 2.
assets and liabilities, compliance with legislation and conventions
(both national and international), and an assessment of measures
put in place by the audited entity to promote economic efficiency Example
and effectiveness.
GIS can be gathered and used as audit evidence. GPS
is very effective when it comes to auditing environmental
Methodology and audit tools degradation and loss of biodiversity (as was done during
an audit on wildlife in protected areas conducted by SAI
A forestry audit uses many methods commonly used in most of Paraguay). GIS and GPS were used in the planning,
audits, such as data analysis and evaluation, field observations, executing, and reporting phase of a compliance audit
interviews, sampling, and internal control system evaluation. In done by the SAI of Indonesia on the government’s forest
a forest audit, however, it pays to note we are dealing with the planning and management. A better quality audit resulted
proportion of land coverage, not simple numerical data as found from the use of these tools.
in other types of audits. We need to choose the most at-risk land.
So, auditors need to be equipped with the most appropriate
tools and technologies to achieve the audit objectives.
Computer-based technologies can be exceptionally useful in 3.2 A RISK-BASED
audits. Two examples of these technologies are GPS and GIS.
AUDIT APPROACH

Geographical Information System (GIS) 9
A risk-based audit approach (an approach based on risk
A Geographical Information System (GIS) is a computer-based assessments) is the best way of conducting a forest audit.
tool for mapping and analyzing things that exist and events that This type of auditing applies a method to planning and audit
happen on earth. Burrough (1998) defined GIS as, "set of tools for scoping to help appropriately focus the audit resources of SAI.
collecting, storing, retrieving at will, transforming and displaying
spatial data from the real world for a particular set of purposes”.
Meanwhile, Arnoff (1991) defines GIS as, "a computer based An audit of forest management covers a large range of topics.
system that provides four sets of capabilities to handle geo- To help ensure the audit does not place excessive demands
referenced data: data input; data management (data storage and on the SAI’s resources, it is advisable to prioritize topics and
retrieval); manipulation and analysis; and data output.” sub-topics according to the skills and capacity of each unit

9 Overview of GIS. Available at www.gisdevelopment.net/tutorials/tuman006pf.htm [Accessed 12 January 2010]