IRRC 2013

The Role of Audit Offices in Regulatory Policy

Participants in the workshop will discuss the the role of audit offices in OECD countries in evaluating regulators and regulatory policy programmes and tools, and the identification of good practices.

IRRC 2013: The role of audit offices in regulatory policy

IRRC 2013: The role of audit offices in regulatory policy


They will explore existing practices in OECD countries in performance evaluation by audit offices including the presentation of results, and discuss future developments.
The workshop is part of a workstream on the role of three key actors in implementing the 2012 OECD Recommendation of the Council on Regulatory Policy and Governance (Recommendation): Parliaments, regulatory agencies and audit offices. The Recommendation sets out the measures that Governments can and should take to support the implementation and advancement of systemic regulatory reform to deliver regulations that meet public policy objectives and will have a positive impact on the economy and society. These measures are integrated in a comprehensive policy cycle in which regulations are designed, assessed and evaluated ex ante and ex post, revised and enforced at all levels of government, supported by appropriate institutions.

IRRC 2013 - The role of audit offices in regulatory policy

IRRC 2013 - The role of audit offices in regulatory policy

Foto: Mathias Weitbrecht

Nick Malyshev
Nick Malyshev is Head of the OECD Regulatory Policy Division where he directs country reviews of regulatory reform in OECD and non-OECD countries. He was responsible for updating the OECD recommendations on regulatory reform, now the 2012 Recommendation on Regulatory Policy and Governance. He was a co-author of the 2011 publication, „Regulatory Policy and Governance, Supporting Economic Growth and Serving the Public Interest“. He has worked extensively on the topic of risk and regulation which resulted in the 2010 publication „Risk and Regulatory Policy, Improving the Governance of Risk“.

He has also been directing a programme of co-operation on regulatory policy to enhance competitiveness in Mexico. While at the OECD he has also worked extensively on the economic transition in Russia and China, including analytical and advisory work on a range of topics including regulatory policy and institutional reforms. Prior to joining the OECD, Mr. Malyshev worked as a financial analyst at GlaxoSmithKline, a pharmaceuticals company, and as a securities trader at Wall Street West, an investment bank. Mr. Malyshev, a US national, holds degrees in economics from Duke University and Colorado College.

Aroldo Cedraz
Aroldo Cedraz is a member of the Brazilian Court of Audit since 2007, and has been rapporteur of audits on various themes, such as airport concessions, public health policies, IT and agriculture. In 2012, he was elected Vice-President of the Court.
Prior to TCU, Mr Cedraz held four mandates as Federal Deputy from 1991 to 2007. As a congressman, he favored areas of education, defense, science and technology, external relations and energy. From 2000 to 2002, he left his parliamentary mandate to hold the office of Industry, Commerce and Mining Secretariat of the State of Bahia. As a former professor of the Federal University of Bahia, Aroldo Cedraz holds a doctoral degree from the University of Veterinary Medicine in Hannover, Germany.

Regulation currently plays an important role in Brazil, since the country is about to inaugurate the largest round of concessions since the 1990s. The perspectives opened by the narrowing of partnerships between state and private initiative are promising and will require much effort of regulators and of the Brazilian Supreme Audit Institution.
The Brazilian Court of Audit (TCU) oversees the quality of work done by regulatory agencies. With a dedicated team of almost 70 auditors, the TCU follows up key public concessions of infrastructure projects such as highways, railroads, airports and hydroelectric plants. Simultaneously, TCU oversight of regulators involves periodic audits, evaluating good governance practices of these institutions, their autonomy and transparency and, ultimately, the risk management of their activities. Thus, TCU seeks to foster an institutional design that promotes stability and achieving the objectives of regulatory policies.

IRRC 2013: The role of audit offices in regulatory policy

IRRC 2013: The role of audit offices in regulatory policy


Davi Barreto
Davi Barreto works as an auditor at the Brazilian Court of Audit since 2008, engaged in performance and compliance audits in several bodies of the Brazilian Federal Administration, in themes such as infrastructure regulation, PPPs and public planning & budgeting.

Currently, he is Head of the TCU Secretariat for Oversight of Privatization and Regulation of Transport. Prior to TCU, he worked as a consultant at Monitor Group on projects in the Energy, Food & Beverage and Internet industries. Mr. Barreto holds a Master’s degree in Economics and Regulation from the University of Brasilia.

Marc Hostert
Marc Hostert is Head of the Private Office (Chef de Cabinet) of Mr Henri Grethen, Member of the European Court of Auditors.
Until 2004, Marc was Director of the enterprise policy department at the Ministry of the Economy and Foreign Trade of Luxembourg. He was then appointed Conseiller de Gouvernement 1ière classe and Commissaire à la simplification administrative en faveur des enterprises at the Ministry of SMEs. He was the executive chairman of the National Committee for Administrative Simplification for Enterprises until June 2008. Marc is the editor of the “l’Entrepreuneuriat dans la Grande-Région“ publication and regularly gives advice on enterprise policy. For six years, Marc was Chairman of the board of the Luxembourg national agency in charge of the multi-media campaign for promoting lifelong-learning. Marc’s article „Impact Assessments in the European Institutions: Do they support decision-making?“ appeared in the LGDJ book entitled „Les etudes d’impacts: accompagnant les projets de loi“.

Should Supreme Audit Institutions (SAIs) play a role in better regulation? What role do SAIs play at the moment? What role could or should SAIs usefully play?
Many may consider this to be a natural playing field for SAIs, but SAIs have played a limited role to date. SAIs involving themselves in this field have been the exception and not the rule. One can point to some examples of where SAIs have highlighted the importance of impact assessments for good regulation. In 2010, the European Court of Auditors (ECA) published a report on that subject entitled “Impact Assessments in the EU institutions: Do they support decision making?
Auditors are often hesitant about getting involved in drafting regulations, not only because auditors are required to base their expressed views on hard evidence, but also because by doing so they risk compromising their own independence to judge the situation later.
It may be worth exploring the scope for seeking auditors’ intervention in some parts of the regulatory cycle.

Alex Scharaschkin
Alex Scharaschkin is Director for Regulation, Competition and Consumers at the UK National Audit Office. He is responsible for the NAO’s work examining regulation and regulatory reform, economic and market regulation, and consumer protection. He also leads the NAO’s work on the effectiveness of market mechanisms in public service delivery in the UK (for example in health and social care). His most recent publication is a report on consumer credit regulation in the UK, with recommendations for reform of the current arrangements, which was the subject of a hearing of the Public Accounts Committee in the UK Parliament on 16 January 2013.

The presentation will explain how the UK National Audit Office (NAO) evaluates the performance of regulators and the effectiveness of regulatory policy. It will set out some of the methodological challenges involved, and give examples of how the NAO has addressed these in recent work for the UK Parliament, with particular reference to the NAO’s focus on the „value for money“ of policy implementation.

This workshop has been realized in cooperation with:

OECD - Organisation for Economic Co-operation and Development


Foto: Organisation for Economic Co-operation and Development