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Audit Profile Saudi Arabia General Auditing Bureau

Historical Background

The General Auditing Bureau in the King­dom of Saudi Arabia was established in 1954 within the jurisdiction of council of Ministers. In 1971, a Royal Decree recognised the Bu­reau in its present form.

GAB'S Independence

In terms of its Constitution, the GAB is an independent body reporting directly to the Prime Minister (the Custodian of the two Holy Mosques). The Bureau is administered by a President "State Minister" appointed by a Royal Decree. He cannot be pensioned off or discharged except by a Royal Decree. He enjoys the status, privileges and salaries etc., as that of a minister. The Vice President is also appointed by a Royal edict.

GAB's Jurisdiction

The GAB is entrusted with the task of con­ducting post audit of all the state revenues and expenditures and that of the appropriate use and preservation of movable and perma­nent assets. The Bureau has been endowed with prerogatives consistent with its role and mandate. This has been done to enable the GAB to satisfy itself and present its findings on the following aspects :

1. All state revenue and entitle­ments, movable and immovable assets and services, have been ac­counted for in accordance with the regulations in effect and that all expenditures have been made in accordance with the provisions of annual budget and the administra­tive and financial regulations in force.
2. All state assets, movable and immovable, are used for the purposes for which they were intended.
3. All the auditees implement the financial and accounting rules and regulations and that their financial actions are not in contradiction with such rules and regulations.
4. Follow-up of the applicable financial and accounting rules and regulations to ascertain their compatibility, efficiency and adequacy to new developments in the public administration in Saudi Arabia, pointing out deficiencies therein and proposing adoption of better procedures or alterations in the existing rules and regulations.

GAB's Audit Mandate:

All the Ministries, Government departments and their branches, Municipalities, manage­ments of water springs and water depart­ment, Public Corporations and departments having separate budgets and all private estab­lishments or companies for which the Gov­ernment has either contributed to the capital or has given a guarantee of a minimum profit, are subject to audit by the GAB for bringing out significant findings on the four broad as­pects outlined falling within its jurisdiction.

Auditing Procedures:

In order to audit these diverse activities, the GAB adopts both desk and field auditing based on samples selected and determined on technical basis and according to statistical methods. However, in the light of need and depending on weaknesses detected in the internal control systems of the auditees, the auditor has the discretion to increase sample size and institute in-depth inspection to get the needed audit evidence, in adequate measure.

Reporting

According to article 21 of the GAB's Constitution, its President submits an annual report to the King "Custodian of the two Holy Mosques", with copies to the Ministry of Finance and National Economy and to the Council of Ministers. This annual report must include:

1. A general evaluation of the state's financial administration.
2. An evaluation of the financial administration of each audited authority.
3. A statement of the state's final ac­ count.
4. A brief statement of the GAB's work achieved during the respective year.

GAB's Organisation

The organisation set-up of the GAB is shown in the attached chart.

- An inscription from The Kautilya Artha Sastra
(Book 6.1.4) in Accountants General
Office, Allahabad,India