New audit legislation
New audit legislation to replace the Audit Act 1901 was introduced in the Commonwealth Parliament in June 1994. This followed a recommendation of the Parliament's Joint Committee on Public Accounts, which concluded that the existing Audit Act was out of date and needed to be replaced with more modern legislation. The legislation comprises of three Bills :-
The Auditor General Bill 1994, which provides for the appointment and conditions of the Office of the Auditor General, functions and powers of the Auditor General, information gathering powers and secrecy provisions, and the audit of the Australian National Audit Office.
The Financial Management and Accountability Bill 1994, which provides a framework for the management of public money and public properly. This Act applies to Commonwealth Departments of State and equivalent Agencies - those who operate on the central bank account.
The Commonwealth Authorities and Companies Bill 1994, which regulates the activities of Commonwealth Authorities, companies and subsidiaries - those who are separate legal entities and hold money in their own right.
The above legislation is expected to come into effect from July 1, 1996, after being passed by Parliament.
First Audit Act
The Audit Act of the People's Republic of China was adopted on August 31, 1994 by the Ninth Plenary Session of the Standing Committee of the Eighth National People's Congress of the People's Republic of China, and has come into effect from January 1, 1995. It is the first Audit Act in China and is an important milestone in China's audit legislation. The Act takes note of auditing experiences acquired over the past eleven years in China, and provides a legal framework for establishing a system of audit supervision compatible with a socialist market economy system.
In accordance with China's Constitution, the Act stipulates in detail the principles of auditing supervision, audit institutions' structure and audit staffing, scope and mandate of audit institutions and audit procedures and legal responsibility. It also provides legal sanctity for audit institutions to carry out their auditorial responsibilities with independence and strengthens auditing supervision in accordance with law.
The Act stipulates that the Audit Administration of the People's Republic of China (AAPRC) (now renamed as the National Audit Office of the People's Republic of China) would be in charge of nation-wide auditing work. It also defines the legal status of internal audit and private audit in the Chinese audit system and their relationship with the government audit institutions.
Auditing Standards
The Comptroller and Auditor General of India has issued Auditing Standards, which lay down the basic principles and practices which Government auditors are expected to follow in the course of audit. The standards have been grouped into three categories :-
These standards are supplemented by the guidelines contained in the different manuals governing work in the Indian Audit and Accounts Department.
Indo-China Joint Seminar
An Indo-China Joint Seminar on "Performance Auditing" was held at Bangalore, India from March 7-11,1994 under the Memorandum of Understanding between the SAIs of India and China signed in January 1992. The Indian side was headed by Mr. Dharam Vir, the then Additional Dy. Comptroller and Auditor General, while the Chinese side was headed by Mr. Cui Jianmin, Deputy Auditor General.
At the Seminar, the Indian delegation presented papers on the following topics :-
The Chinese side presented papers on :-
The next Indo China Seminar on "Audit of Public Utilities" will be held in Beijing in June 1995.
UN Audit
Mr. C.G.Somiah, Comptroller and Auditor General of India , who has been a member of the United Nations Board of Auditors from July 1993, became the Chairman of th£ Board from January 1995. During the year, SAI-India deputed a number of its staff members for audit of five organisations, for which it bears primary responsibility, namely the United Nations Headquarters, United Nations High Commissioner for Refugees (UNHCR), United Nations Environment Programme (UNEP), United Nations Habitat and Human Settlements Foundation (Habitat) and United Nations University (UNU). It also deputed a special party to conduct audit of the Integrated Management Information System (IMIS) of the United Nations at the request of the General Assembly. The reports of the U.N. Board of Auditors for the period ended 31 December 1993, were presented to the General Assembly in 1994 and have received general acclaim.
Annual Reports for 1991-92 and 1992-93
Since its appointment on August 11,1993, the Supreme Audit Board for the period 1993-98, has submitted the Annual Reports for 1991-92 and 1992-93 to the Parliament. Both reports cover the results of audit of the financial statements of the national budget, as well as audit of the implementation of the national budget, regional budget and budgets of national and regional-owned enterprises. To provide Parliament with more current information on budget implementation, the Board plans to also issue semester reports in the future.
Visit of foreign delegation
A three member delegation from the Board of Audit and Inspection of the Republic of Korea headed by Commissioner Jong Chul Kim, visited the Office of the Supreme Audit Board of Indonesia in the second week of May 1994. The objective of the visit was to study and exchange experiences in diverse areas of auditing, including anti-corruption, audit of expenditure (with emphasis on efforts to minimise budget appropriations), audit of efficiency in organisational and manpower management and audit of faulty construction works and irregular practices adopted by construction contractors.
Issue of Audit Report
The Audit Bureau of Jordan presented its 1992 annual report to the Parliament in accordance with Article 119 of the Constitution, which states that the Audit Bureau shall submit a general report to the Parliament at the beginning of the ordinary session of the Parliament or when requested by it. The report includes the Bureau's observations on the audited departments, a description of the violations committed and consequent responsibilities therefor. It also contains the recommendations arising from these observations, for discussion in the Parliamentary sessions being held this year.
Manual on Certificate of Settlement and Balances
The Commission on Audit has issued the 1993 revision of the Manual on Certificate of Settlement and Balances (CSB). The use of the Manual on CSB was prescribed by the Commission, pursuant to the constitutional mandate vested in it to examine, audit and settle all accounts pertaining to the revenues and receipts of , and expenditures or uses of funds and property, owned or held in trust by or pertaining to the Government, and to promulgate accounting and auditing rules and regulations. The latest revision follows the 1985 revision of the manual, and addresses many of the problems and delays in issue of CSBs.
Issue of General Report for 1993
The State Audit Institution has issued its Ninth General Report for the year 1993 and submitted it to the Federal National Council (in its capacity as the legislature of the Federation). The Report focusses on the results of regularity audit and performance audit conducted by the SAI during 1993.
Preparation of Audit Guide
The SAI has formed eight Committees, each headed by a Director, to formulate a detailed plan for preparing the SAI's Audit Guide. The Guide will consist of four major sections on :-