Tag: Featured Articles

The State Audit Office Law stipulates that the State Audit Office of Latvia (SAI Latvia) has the right to provide recommendations for addressing the deficiencies discovered during the audit, as well as to specify a time limit by which the audited entity shall notify, in writing, that the deficiencies have been resolved. In 2023, SAI Latvia celebrated its centenary, and over time, the State Audit Office has refined its approach in providing recommendations and in facilitating their implementation by the auditees.

In 2023, the Federal Court of Accounts (TCU), the SAI of Brazil, issued 137 decisions containing deliberations for its jurisdictional units. These decisions generated 1,110 items subject to monitoring, including determinations and recommendations. Monitoring the implementation and impact of these deliberations is a process as important as the audits themselves, demanding a considerable effort from the SAI’s resources.

Efficient and effective utilization of public funds and resources is essential for all countries to achieve their development targets. Government auditors, led by national supreme audit institutions (SAIs), play a critical role in monitoring the utilization of these resources. SAIs are countries’ top watchdogs on government finances and are mandated, often by national constitutions, to scrutinize whether governments are managing public funds properly. SAIs conduct financial audits that examine the legality of financial transactions and performance audits to assess whether public funds have been used efficiently and effectively. Audit reports issued by SAIs contain recommendations on how to improve financial management. 

In this era that witnesses rapid developments in technology fields and growing administrative challenges, there is an increasing need to modernise auditing systems to enhance transparency and efficiency in the management of public resources. For decades, the Kingdom of Saudi Arabia relied on a regulation of government warehouses that was adopted in 1983, which was, at the time, appropriate and effective according to the standards and requirements. This regulation, which was implemented under the supervision of the Ministry of Finance (MOF), provided a solid foundation for managing resources efficiently and effectively. In this context, the Supreme Audit Institution of the Kingdom (the General Court of Audit  (GCA)) played a pivotal role in pioneering digital transformation and modernising systems through active participation in restructuring and developing the regulations of government warehouses. The last of these regulations was issued in 2020, which came into effect following its communication with the government authorities, most notably the MOF on one hand, and higher authorities on the other. This process included introducing advanced automated systems, improving government procedures, and activating administrative governance in accordance with best practices, which contributed to significantly improving government operations and services.

The Supreme Audit Institution (SAI) of Brazil, known as the Tribunal de Contas da União (TCU), is tasked with overseeing the federal entity’s accounting, financial, budgetary, operational, and asset management to ensure legality, legitimacy, and economy. The Federal Constitution of 1988 empowers the TCU to enforce compliance with the law by setting deadlines for necessary corrective measures upon detecting illegality.

The National Audit Office’s (NAO Malta) mission is to assist in promoting accountability, propriety, and best practices in government operations. This mission is continuously achieved through the substantial number of audits of a compliance, financial, performance or investigative nature in various Ministries, departments and Government entities. 

The National Audit Office of China (CNAO) places equal importance on both revealing problems in audit and correcting problems identified. Through in-depth research-based auditing, proactive efforts have been made to heighten the effectiveness of follow-up audit featuring clarified implementation responsibilities, operational workflows, and value added outcomes.

The Government Accountability Office’s (GAO) work routinely generates recommendations for improving the efficiency and effectiveness of government programs, resulting in measurable savings and improvements. Since fiscal year (FY) 2002, GAO’s work has resulted in about $1.38 trillion in financial benefits and over 28,000 program and operational benefits that have helped change laws, improve public safety and other services, and promote better management throughout government. In FY 2023 alone, GAO’s work yielded $70.4 billion in financial benefits—a return of about $84 for every dollar invested in GAO. GAO also identified 1,220 other benefits—those that cannot be measured in dollars but led to program and operational improvements across the government.  Examples of recent accomplishments include:

In Peru, there are three main types of control services in the governmental sphere: ex-ante, simultaneous and ex-post.

Ex-ante control is implemented before any financial disbursement is made. A clear example is the ex-ante authorization requested from the Office of the Comptroller for the payment of additional services in investment or construction projects.

Audits performed by Supreme Audit Institutions (SAIs) are valuable tools that help identify risks, inefficiencies and areas of improvement for a wide variety of governmental programs.  These audits fill the gap between policy and practice by providing timely audit results and constructive feedback to those audited.  Included in this constructive feedback are recommendations meant to enhance performance and implementation of recommendations to ensure policy and/or standards are being met. This closing of the audit loop is an essential, final step in the audit process.  

Through their work, Supreme Audit Institutions (SAIs) are compelled to promote positive changes in people’s lives. To achieve this purpose, auditing stands out as one of the most important tools at SAIs’ disposal to increase the public value generation. By carrying out audits, a SAI can evaluate whether processes are executed in compliance with established norms, identify performance improvements (under the usual principles of effectiveness, efficiency, and economy), or conclude on the financial information of an entity.

Many auditors have developed considerable experience conducting each stage of an audit, yet those same auditors often lose momentum when it comes to moving from one stage to the next. One reason is that auditors must get the details right to support convincing findings and conclusions; however, that same focus on the details may prevent an auditor from considering how decisions on one stage will impact the next stage of the audit. Consequently, in addition to developing technical skills needed to execute each stage of an audit, auditors should also develop the ability to think ahead to help an audit move smoothly from one stage to the next. 

Since the SAI Performance Measurement Framework (SAI PMF) was introduced in 2010, an impressive 96 SAIs have completed a SAI PMF assessment. While SAI PMF has become an established tool among SAIs globally, uptake so far has been more limited among SAIs with jurisdictional competencies, with only 12 being jurisdictional-model SAIs out of the 96.  

Supreme Audit Institutions (SAIs) have a vital role for public sector accountability, integrity, and transparency. To fulfill their role and build trust between the organs of the state and society, SAIs need to be independent. 

SAI Independence may be understood as the ability of a Supreme Audit Institution to operate autonomously of the government, without undue influence and control. It is considered a fundamental condition for SAIs to effectively carry out their mandate. The INTOSAI Mexico Declaration on SAI Independence identifies eight conditions, known as the pillars of independence, as the benchmark against which the independence of an SAI can be assessed.

The 7th Forum of Jurisdictional Supreme Audit Institutions (SAIs), held in Bangkok on 16-17 October 2023, was inaugurated with an opening ceremony that featured a series of distinguished speakers, underscoring the global significance and collaborative spirit of the event. General Chanathap Indamra, the President of the State Audit Commission of Thailand and Chairman of the ASOSAI, extended a warm welcome to participants, setting a tone of camaraderie and shared purpose for the proceedings. Mr. Jean Yves Bertucci, the President of the Chamber of Litigation of the French Court of Accounts, contributed his insights, further enriching the dialogue with perspectives from Forum of Jurisdictional SAIs.

The model of jurisdictional supreme audit institution (SAI) is recognized as that of an institution which is able to carry out all types of audit – performance, compliance, and financial audits – and, in addition, is invested with the power to issue formal rulings directly sanctioning the liability of managers of public funds when its audit findings show some irregularities, or when such irregularities are referred to the SAI by a third party.

The European Union needs a strong protection of its funds in order to ensure its administration, and to allocate resources to the Member States or other beneficiaries, for the implementation of its own policies. Both tax evasion and illicit conduct resulting in the receipt of undue funding or the diversion of such funds from their intended purposes cause damage to the European Union (EU)’s treasury.

The concept of this article, “Duties and Powers of the State Audit Commission of Thailand to Order an Administrative Penalty” was inspired by reflections upon a similar French model. Professor Dr. Orapin Phonsuwan Sabyeroop wrote an article titled “Control of Budget Enforcement and Fiscal Administration by Judicial Bodies in the French Public Finance System” after completing her Ph.D. at the University of Paris II. Thailand adopted this concept, but adjusted it to fit the country’s context at the time. Due to the inability to establish a court quickly and timely, Thailand initially adopted the model of a board, or the Board of Audit, to enforce these principles before developing a court system similar to France’s in the future. 

Fraud in public management can be defined as the abusive use of power by a person vested with public authority or mandate, to serve their own or private interests.

Given the risks associated with fraud, the Kingdom of Morocco has spared no effort in promoting an exhaustive and integrated vision to tackle this global challenge that affects economic and social development. Morocco’s particular attention to the fight against fraud is reflected in the 2011 Constitution, which has elevated good governance bodies to constitutional status, and enshrined the principles of good governance(1), transparency, accountability and the moralization of public life(2). The protection of these principles has been entrusted to the Court of Audit(3).

Spanish society has undergone major changes over the last 20 years in line with other countries of the European Union. The financial crisis of 2008 strongly impacted the Spanish citizenry, and resulted in the arrival of important and fast changes: political, economic and social changes.

Since 2020, the Federal Court of Accounts of Brazil (TCU) has been structuring a policy of professional trajectories, with the aim of greater professionalization of its auditors. A professional trajectory is defined as the sequence of positions or roles occupied throughout the functional life of an auditor, encompassing qualifications, experiences, and competencies necessary to perform functions at a certain career level.