In its 31st meeting held in Manila in 24 October 2002, the Governing Board of ASOSAI established an ad hoc Working Group and a Core Member Task Force to develop regional guidelines for dealing with fraud and corruption. While the Working Group comprised nominees of the SAIs of Bangladesh, India, Japan, Korea, Malaysia, Nepal, Pakistan, Philippines, Thailand and Turkey, the SAIs of India, Japan, Pakistan and Philippines were represented on the Core Member Task Force.

The work for developing the Guidelines was initiated by the SAI of Japan by conducting a questionnaire-based survey on existing approaches and practices followed by member SAIs. The survey was conducted from December 2002 to January 2003.

The SAI of Japan also developed a Base Document for the Guidelines taking into consideration the responses to the survey questionnaire and related professional material. A Working Draft of the Guidelines was developed by the Working Group during a two week Workshop [The workshop was funded by JICA] held in Tokyo from 12th to 23rd May 2003. The Working Draft was refined into the First Exposure Draft of the ASOSAI Audit Guidelines on Fraud and Corruption by the Core Member Task Force. The First Exposure Draft was sent to all the Governing Board members for their comments in 23 July 2003.

Taking into consideration the comments of the Governing Board members on the First Exposure Draft, the Core Member Task Force prepared a Second Exposure Draft, which was sent to all the ASOSAI members as advance information for the 9th ASOSAI Assembly in 9 October 2003. After that, further efforts had been made by the Core Member Task Force to refine the Draft into the Final Draft of the ASOSAI Guidelines for Dealing with Fraud and Corruption.

The Final Draft was discussed and supported by the Training Committee on 19 October 2003, and approved at the 32nd Governing Board meeting on 20 October 2003, and the 9th Assembly on 22 October 2003.

In the ASOSAI Guidelines for Dealing with Fraud and Corruption, 30 specific audit guidelines on fraud and corruption are included. Each guideline refers to an auditing principle / standard and guidance prescribed by the INTOSAI auditing standards. The guidelines also include a chapter dealing with understanding fraud and corruption by auditors of the member SAIs.