Tag: Featured Articles

Supreme Audit Institutions (SAIs) are crucial for good governance, accountability, and transparency. In Bhutan, the Royal Audit Authority (RAA) audits public resources, with its effectiveness critically dependent on independence amidst political, economic, or institutional pressures. This article examines SAI Bhutan’s real-world experiences, highlighting its successes in safeguarding independence and the persistent challenges it faces, drawing insights from official publications, peer reviews, and specific audit cases.

The 1997 constitutional and legal enactments stand as a defining event in the history of the Maltese National Audit Office, which originated as an auditing department within the public service. This historical date is comparable to the founding of the former Department of Audit, established by the first British Governor of Malta, Sir Thomas Maitland, back in 1814, and the grant of elementary constitutional protections to the Director of Audit when Malta became an independent state in 1964.  To commemorate this important milestone in 2022, amongst other initiatives, the National Audit Office of Malta (NAO) issued a scholarly book entitled ‘State Audit in Times of Transition – Reflections on Change and Continuity, Challenge and Opportunity from Malta and Beyond’. Edited by Professor Edward Warrington, it includes a collection of studies that essentially reflect on the past and present with an eye to our institution’s future.  This article is based on the introduction to this book that is accessible on our website (State-Audit-in-Times-of-Transition).

The principle of independence is the cornerstone of credible public sector auditing. Foundational documents, as the Lima Declaration (INTOSAI 1977) the Mexico Declaration (INTOSAI 2007), and landmark United Nations General Assembly resolutions, including A/RES/66/209 (2011), A/RES/69/228 (2014), and the political declaration from the special session against corruption, A/S-32/L.1 (2021), support a global consensus that strong, independent SAIs are essential pillars of democratic accountability and public trust.

Independence is what Supreme Audit Institutions need to fulfill their vital role of promoting transparency and accountability in public administration. Yet it is often jeopardized by political interference. What are the most effective strategies for safeguarding it? Research suggests that we may have some misconceptions about the effectiveness of existing measures in this crucial area.

The Supreme Audit Institution (SAI) of Cyprus hosted a High Level event on European Union (EU) SAIs Independence in Pafos on October 15th 2024, with keynote speakers from the European Commission, the INTOSAI Development Initiative (IDI), the Support for Improvement in Governance and Management (SIGMA)/ Organisation for Economic Co-operation and Development (OECD) and the House of Representatives of the Republic of Cyprus.  The event was attended by 21 SAIs of the European Union and 5 SAIs of Candidate and potential Candidate countries.   The purpose of the event was for SAIs to reaffirm their commitment to safeguard their independence, address challenges that could pose a threat to it and discuss possible solutions.  

Supreme Audit Institutions (SAIs) are a cornerstone for public financial management and good governance. Being able to work independently is necessary for transparency, accountability, and the good use of public resources. The World Bank considers that SAI independence is not only a legal or technical aspiration but also a developmental necessity. SAIs’ mandate is to build trust in the public, hold governments accountable, and contribute to national development goals, particularly Sustainable Development Goal (SDG) 16 on peace, justice, and strong institutions (United Nations, 2015). But they cannot do these things if they are not fully independent. 

The INTOSAI Strategic Plan for 2023-2028 identifies advocacy for and support of the independence of Supreme Audit Institutions (SAIs) as a central priority. It highlights how INTOSAI promotes and supports SAIs’ efforts to improve and protect their independence to enable SAIs to fulfil their mandate to the benefit of citizens. 

Across Africa, the independence of Supreme Audit Institutions (SAIs) faces growing pressure. Political transitions, fiscal crises, and governance challenges have, in some cases, led to attempts to limit the authority of SAIs, restrict access to resources, or interfere with the tenure of Auditors General. Such threats undermine not only the credibility of SAIs but also their ability to deliver impartial audits that safeguard public funds and strengthen trust in government. In this context, legislative, administrative, and financial independence is not a theoretical aspiration; it is a practical necessity for SAIs to fulfil their constitutional mandates without fear or favor.

Amid today’s complex political climate, low public trust in institutions, and tighter government budgets, the independence of Supreme Audit Institutions (SAIs) becomes more relevant than ever in ensuring that governments manage public funds openly, efficiently and for the benefit of citizens. However, both the Organisation for Economic Development (OECD) and the INTOSAI Development Initiative (IDI) have found that SAIs face major – and sometimes increasing – obstacles. These challenges are not just legal, but also practical—especially in their relationships with executive and legislative branches.

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. 

A long road has been travelled by INTOSAI since its first Congress in Cuba in 1953. Its ongoing existence shows the enduring value of external auditing and that INTOSAI itself has been able to stand the test of time as a professional organisation. 

Office of the Auditor General of Somalia (OAGS) has achieved a significant milestone by implementing a digital Contract Management System (CMS), representing a pivotal step toward promoting transparency, accountability, and operational efficiency across public institutions. As part of a broader public financial management reform agenda, the CMS signals Somalia’s commitment to modernising governance structures and aligns with the global drive to digitalise public sector oversight. This experience offers valuable lessons to other members of the International Organization of Supreme Audit Institutions (INTOSAI), particularly those in developing or fragile states where building transparent systems remains a pressing priority.

Classic financial audits arrive long after the money has moved. By the time ledgers are reconciled and reports are tabled, fraudulent transfers may be laundered beyond recovery. Government data, however, now travels through digital highways—treasury platforms, tax APIs, banking gateways, platforms, even the cloud —where each transaction leaves a time-stamped footprint. 

Tanzania is one of the East African countries vested with stunning landscapes, rich culture, and iconic tourist attractions. Tanzania’s economy is classified as lower-middle-income, with a Gross Domestic Product (GDP) of around $75 billion US dollars. The economy is diverse, with agriculture, mining, and tourism being key contributors.  In recent years, Tanzania has made significant strides in infrastructure development, energy production, and social services, which have collectively bolstered economic growth. Despite these advancements, the country continues to grapple with challenges related to corruption and financial crimes.  The government has intensified efforts in combating these issues, corruption remains a significant impediment to development and poverty reduction. The country’s ranking on international anti-corruption indexes reflects ongoing challenges, with Transparency International placing Tanzania at 94th out of 180 countries in its Corruption Perceptions Index (CPI) for 2023.

Real-time audits can complement and add to the scope of work undertaken by national, state and local audit organizations, providing timely insights and enhancing oversight and decision-making. As reflected in the INTOSAI Journal’s recent discussion of responses to the COVID-19 pandemic, real-time audits helped to track contracts, funding, and services. Against the backdrop of the pandemic as well as tracking government interventions after financial crises and responding to natural disaster recovery efforts, real-time auditing experience offers lessons learned about how Supreme Audit Institutions (SAIs) can contribute to good governance and accountability for public funds. 

Like many people, when I travel, I often take a taxi from the airport into the city center where I’m visiting or working. In my experience, taxi rides are a fantastic opportunity to learn about the local culture, find out which sights are worth a visit, or get recommendations about where to eat. What’s more, these drives are a prime opportunity to find out some more nuanced (and personal) information: how people perceive their government. In many instances, issues of corruption, inefficiency, and waste are openly shared by the driver, alongside personal perceptions of particular politicians. It’s a great, albeit anecdotal, way to get a feel for what local people are thinking or feeling. 

Effective public financial audits are vital tools in promoting transparency, accountability, and good governance in the public sector. Supreme Audit Institutions (SAIs) play a key role in evaluating how public funds are managed and ensuring that public officials act in accordance with laws, policies, and ethical standards. This article outlines best practices for conducting public financial audits, grounded in the International Standards of Supreme Audit Institutions (ISSAIs).

This paper examines the integration of performance audit perspectives into financial audits on the Audit Board of the Republic of Indonesia’s (BPK) by using the Financial Audit with Performance Audit Perspective (FAPA) framework. This paper demonstrates how FAPA approach, documented through Long-Form Audit Reports, enhances audit impact by evaluating both financial accuracy and operational effectiveness. Despite challenges in methodological alignment, stakeholder management, timing, and coordination, we present a structured workflow model for effective implementation of the FAPA framework. The paper advocates for further integration of sustainability and foresight elements to promote long-term value creation in public financial management, better meeting evolving stakeholder expectations and supporting Sustainable Development Goals.

In response to public demand and global trends, the State Audit Office of Latvia (SAI of Latvia) has initiated the most significant transformation in its audit operations in the past two decades.

Undoubtedly, evidence is the cornerstone that auditors rely on to substantiate their findings during financial audits. A critical question for auditors is whether the quantity and quality of the evidence gathered during testing unequivocally support their conclusions. 

Public finances are like the lifeblood of a country – they fund social programs, build infrastructure, and provide essential services that people rely on every day. Keeping public administration efficient and transparent is key to earning people’s trust – it’s about more than just good governance; it’s about showing citizens that their institutions truly work for them. Financial audits are the main instrument used by Albania’s Supreme Audit Institution (ALSAI) to guarantee efficiency, accountability, and transparency in the administration of public funds.