Federal Law No. 7 was promulgated in 1976 to establish SAI as a supreme Audit Institution. The Law guarantees its independence functionally and financially from the executive, and authorized it to exercise external financial Audit in the state. The SAI is attached to the federal council in its capacity as the legislature in U.A.E.
The SA! conducts financial Audits of public funds. It also ensures the legality and safety of the implementation of development projects. It does this by conducting financial Audits of Ministries, Federal Government Departments, public Corporations, Companies, or any bodies in which the state or any public artificial person has a share of not less than 25 percent, or of which the state guarantees minimum limit of profit or offers financial subsidy.
In addition to these Audits, the SAI also approves draft government contracts above 500,000 DH. which equals US$ 1,36,000. The SAI also exercises control during contract implementation, and has full post control. The later includes inspection and Audit of public expenditures, public revenue, reconciliation accounts, loans accounts, investments, stores, final and appropriation accounts of all authorities controlled by the SAI as well as balance sheets, profit and loss accounts operating and trading accounts of the economic sector's corporations and companies subject to the SAI control and documents to identify the exact financial position of these authorities, corporations and companies.
In addition to legality and efficiency audits, the SAI oversees the accountability of all officials who are responsible to it for settling funds. If necessary, the SAI takes action against officials who commit a violation.
The president of SAI has to forward an annual report about each final account of the bodies subject to SAI's control, but he can also forward other reports during the fiscal year about cases which he may see of major importance obliging perusal of the concerned authorities.
SAI is composed of the president of the SAI, vice president, the Advisor and the following Departments.
Each department is presided by a Director assisted by a controller. Under their supervision, many auditors work. Their qualifications and number have been limited according to the nature and need of work in the department.