Page 30 - 4. Pre-Course Reading-Training on Forestry Audit 2019

Auditing Forests: Guidance for Supreme Audit Institutions

Figure 3.2
Risk based audit strategy to audit management of forest – a case study

SUSTAINABLE FOREST MANAGEMENT: IDENTIFIED RISKS:
• Policy and legislation • Illegal logging
- Forest policy • Illegal uses of lands (forest areas)
- National forest inventory • Forest fires
- Permanent forest estate • Income/Revenue
- Forest ownership • Biodiversity
- National forest service • etc
• Forest management
- Planning
- Harvesting
- Protection
- Monitoring and research GOVERNMENT RISK MANAGEMENT (GRM) AND
• Socio-economic and financial aspects INTERNAL CONTROL SYSTEM (ICS)

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FOCUS ON: PRIORITIZATION:

• Rehabilitation of forest • Effectiveness of GRM and ICS
• Forest fires • Auditability
• Illegal logging • Impact
• Illegal use of land (forest area) • People awareness
• Income/Revenue
• Biodiversity

AUDIT PLAN
• Annually : Forest fire audit (on the spot), income/revenue audit and management unit audit (Illegal logging and logging
internal system)
• Thorough step-by-step approach: national inventory and permanent forest estate audit, land use policy audit, biodiversity
audit and forest rehabilitation audit.

Table 3.1
Sample case for specific issues

The House of Representatives asked SAI to conduct an audit related to forest destruction caused by tin mining (illegal use of
land). The SAI was also asked to consider forest policy. The SAI could refer to Appendix 3 (audit design matrix) to establish
procedures that will be applied when conducting the audit for both requests. Considering those risks, SAI could directly refer
to the topic and sub-topics related to illegal use of land, before setting audit procedures by referring to Appendix 3 the (audit
design matrix). The next step would be to develop an audit programme or audit plan memorandum.

Table 3.2
Sample case for general issues
The House of Representatives asks the SAI to conduct a forest management audit of a specific area. When accepting the assign-
ment, SAI should determine audit topic related to that issue. To do this, the auditor would discuss the issue with the House of
Representatives and other relevant parties. In order to design the audit program, the SAI will follow the following phases:

PHASE I: Identify risk
After receiving the request from the House of Representatives, the SAI can formulate the risk(s) related to forest management
by conducting interview, analyzing the previous reports, and conducting research on public or other parties opinion. The SAI
also can use the risk table in Chapter 2 to identify risk related to forest management.