Our SAI in cooperation with the Secretariat General for the Gulf Cooperation Council had organised the said seminar from 12-16th September, 1998 in Abu Dhabi. 21 Directors and Senior auditors had participated.
Discussion were based on papers prepared by the hosting SAI and the participants and included the following headings:
Recommendations:
Eighteen recommendations were reached included among other recommendations the following:
- There should be continued national and regional training programmes, and incentives be given to SAIs personnel to encourage them to participate in training programmes.
- Efforts should be taken to strengthen regional cooperation and exchange experts and audit reports on the final account of the State.
Our SAI has issued its twelfth General Report and send it to the Federal National Council in its capacity as the legislature in U.A.E. The Report had focused on the activities of the SAI during 1996, including the results of Regularity and Performance Audits.
The president of the SAI has issued the Fourteenth Work Plan of the SAI for the period from 1/5/1998 to 30/4/1999.
The plan has contained the detailed objectives in the light of the aggregate target of our SAI, as well as the means and the standards to implement those objectives in regularity and performance audits and in pre-audit, concomitant and post audits.
1. Annual Report Submitted
The Auditor General of Nepal Bishnu Bahadur K.C. submitted thirty fifth report of the Auditor General to His Majesty King on August 28, 1998. The report contains matters highlighted in the audit of fiscal year 1996/97. The report is divided in four parts. First part deals with Government Agencies, Courts, Royal Nepal Army and Nepal Police and Auditor General's overall observations. Part-2 contains report of Performance Auditing. Part-3 comprises reports on autonomous bodies (boards, councils, universities) and corporate bodies. Part-4 contains certified statements of revenue and appropriation prepared for each budget sub-head. The report has been tabled in the Parliament as commanded by His Majesty the King.
2. Guide-lines Issued
The Auditor General of Nepal has issued guidelines to audit entities. The guidelines were issued as per the Audit Act, 1991 which states that the Auditor General may issue guidelines to ensure regularity in maintaining books of accounts, submitting statements for audit and clearance of audit findings. The guidelines are expected to ensure consistency in the systems to be followed in auditing, certification of book of accounts, financial statements and follow-up of audit findings.
ITEM-I
Pak-China Seminar
Pak-China Seminar on "Audit of Foreign Aid" was held in Lahore from 27-30 March 1998. History of Pak-China Seminars goes back to October 1989 when the first such seminar was held in Beijing on the theme of "State Audit Planning and Certification". Since then, four more seminars have been held either in China or Pakistan including the latest.
The theme of the present seminar was chosen with a particular reference to the policies of the present government on accountability. The purpose of the seminar was to explore and investigate the extent to which the use of foreign aid had been optimized to contribute to the lot of the common man. The idea was to identify the areas of common concern for the auditors to make their contribution to the better use of foreign aid and thus assist in governments efforts to improve the quality of life of the masses in the two countries.
Objectives Of The Seminar.
China and Pakistan got independence in a space of three years of each other. In the ensuring process of national reconstruction and development both nations resorted to foreign aid as a source of funds, albeit the difference in the manner and level of dependency on foreign aid. The main goal of this seminar was to explore ways and means to assess the efficacy of foreign aid hitherto obtained and to do groundwork for laying down some permanent evaluative framework in future. The specific objectives included
To learn about each SAl's philosophy, methodology and techniques of audit and their respective contribution to the accountability process.
To share experiences in the realm of Audit of Foreign Aid.
To understand audit environment in each country and learn about the latest changes taking place in the role and functions of the two SAIs.
To promote cooperation between the two SAIs in professional areas.
Seminar Recommendations
Item-ll
Visit Of The Chinese Auditor-General Mr. Li Jinhua, To The Audit & Accounts Training Institute, Department Of The Auditor-General Of Pakistan Lahore On 05-11-1998
Auditor General of China Mr. Li Jinhua, visited Audit & Accounts Training Institute of the Department of the Auditor-General of Pakistan in Lahore. Mr. Li Jinhua, who enjoys the status of a State Minister visited Pakistan with a seven members delegation from the Chinese National Audit Office (CNAO). Mr. Li has recently been elected by the Peoples' Congress for the august office. During their visit the members of the Chinese Delegation were briefed about the activities of the Audit & Accounts Training Institute and the Performance Audit Wing by Mr. Suhail Safdar and Mr. Iftikhar Hussain Tariq the Directors-General of the two institutions. The presentation made to the Chinese Auditor-General particularly focused on the International Training Courses held by the Pakistan Audit Department. Pakistani audit experts have been training their Chinese counterpart in modern auditing techniques like Performance Audit and Certification Audit by holding courses, seminars, workshops, both in China and Pakistan. The members of the high level delegation were also briefed on potential avenues of future cooperation between the Supreme Audit Institutions of the two countries. Mr. Li Jinhua, Auditor General of China expressed deep thanks for the warm welcome extended to him. He hoped that mutual cooperation in training will prove the key to help improve the performance of the two countries. It will help their economies to perform better he and his delegation asked many questions about the nature and working of the training institutions of the SAI of Pakistan. Afterwards, the Chinese Auditor-General planted a sapling in the premises of the Audit & Accounts Training Institute at Gulberg Campus, Lahore. The Chinese Auditor-General's exploratory visit was termed very successful, as bilateral cooperation will be furthered deepened and strengthened through this visit.
Item-Ill
An Initiative In Public Private Partnership
SAI Pakistan launched an initiative in Public Private Partnership in the field of training in 1998. It was decided to place the fresh entrants in the officer grade of the Department of the Auditor-General of Pakistan, with some renowned firms of Chartered Accountants to get exposure to the working and culture of the corporate sector. The placement included hands on training in various phases of the accounting cycle as well as exposure to incorporation and tax procedures and visits to stock exchange and Company Registrar's Office. The field placements were preceded by a four week rigorous exposure to the Accounting Procedures of Limited Companies.
Having been recruited through a nation-wide competitive examination followed by general administrative training at the Civil Service Academy, these 'Probationary Officers' join the Audit and Accounts Training Institute Lahore for the specialised phase of their training. Here they are mainly trained in the fields of Financial Accounting, Cost Accounting, Government Accounting and Auditing, MIS and Human Resources Management.
The placements with the Chartered Accountants were scheduled in the last part of the Specialised Training Programme, to ensure that the officers had orientation in the relevant fields so that they could develop a comparative perspective on the concepts and methodology of Public and Private Sector. The vision behind this initiative was to equip the public sector auditor with a board vision of accounting and auditing professions.
I. 1998 Audit Work
In 1998, the National Audit Office of the People's Republic of China (CNAO) has been implementing the Audit Law of the People's Republic of China in a comprehensive manner and earnestly carrying out its audit duties and responsibilities. Audit has been conducted centering around the core issues of government work. Major audit work includes audit of corresponding - level budgetary implementation, checkup audit review of the grain distribution system, audit of Securities companies and furtherance of experimental enterprise audit. Such work has played an important role in promoting and furthering various reform measures of the government, maintaining the state's economic order, improving macroscopic readjustment and control and reinforcing the building of a clean government.
In addition to the above major audit assignments, the CNAO has also audited agriculture funds, foreign funds application and fixed assets investment. Audit has also been conducted of power development funds, the Three Gorges Project development funds, key state construction projects, water resources finds, poverty relieving funds, housing funds tobacco companies and the petrochemical industry.
II. 15 Years' Achievements
September 15, 1998 marked the 15th Anniversary of the CNAO Over the period of 15 years since the establishment of audit institutions, auditing in the P.R. China has undergone four stages of growth, i.e.,
Auditing as a source of control has played a significant rule in maintaining the state's financial and economic laws and regulations, promoting the development of economy, intensifying the building of a clean government and ensuring the implementation of the government's macroscopic economic policies. 15 years' development has also laid a solid foundation for furthering audit in the P.R. China.
1. Establishment of a government auditing system.
In accordance with provisions of the Constitution, people's governments at and above the county level nationwide have altogether established over 3,100 audit institutions which are staffed with 86,000 government auditors. The CNAO has set up its resident offices in 16 key cities throughout the country to audit
In addition, the CNAO has dispatched 25 audit offices to departments and direct subordinate non-profit undertakings of the State Council to audit revenues and expenditures of the above departments and undertakings as well as their direct subordinates located in Beijing. Such dispatched offices are directly administered by the CNAO.
2. Comprehensive performance of audit duties and responsibilities.
In the past 15 years, audit has been carried out nationwide in an increasingly effective manner On the basis of financial audit, which has been conducted throughout the past 15 years, performance audit is gaining growing attention. Audit becomes an important source of external control over the nation's financial and economic life.
3. Completion of a Regulatory Framework for Auditing
In 1985 and 1988, the State Council promulgated the State Council's Interim Provisions on Audit Work and the Audit Rules of the People's Republic of China respectively. On August 31, 1994, the 9th Session of the 8th National People's Congress reviewed and adopted the Audit Law of the People's Republic of China, which came into effect as of January 1 1995. In the spirit of the constitutional provisions on auditing as a source of control and catering to the requirements of establishing a socialist market economy and reinforcing auditing in China, the Audit Law provides explicit legal basis for audit work. On October 21, 1997, the State Council promulgated the Implementation Rules of the Audit Law of the People's Republic of China, which further specifies China's auditing system. In order to implement the Audit Law in a proper manner, and to improve audit quality and efficiency, the CNAO formulated 38 government auditing standards including the Basic Government Auditing Standards of the People's Republic of China. On the basis of the 38 standards, the CNAO is now making necessary preparation for the formulation of 45 government auditing standards
4. Active engagement in international audit exchanges and cooperation
Since its establishment, the CNAO has set up friendly cooperative relations with supreme audit institutions of over 60 countries in the field of audit joined the International Organisation of Supreme Audit Institutions (INTOSAI) and the Asian Organisation of Supreme Audit Institutions (ASOSAI). The China Internal Audit society has joined the Institute of Internal Auditors (MA) In the recent years, the CNAO has successfully held the 5th Assembly and the 4th International Seminar of ASOSAI and the ASOSAI Workshop on Public Works Projects Audit. China chaired the ASOSAI from 1991 to 1993 and is a current member of the ASOSAI Governing Board.
In 1998, the CNAO has been very active in international exchanges. Major activities include:
The sixth Indo-China Joint Seminar was held in Mumbai from December 24th -26th 1998 on "Audit of Transport Services". A six member Chinese delegation headed by Mr. Liu Hezhang, Deputy Auditor General of National Audit Office, China attended the seminar. SAI-lndia was represented by a team of 5 members headed by Mr. G.C. Srivastava - Addl. Deputy Comptroller and Auditor General of India.
During the seminar 4 papers were presented by SAI-lndia on Audit of freight on rail, road transportation, ports and comperative aspects of rail and road transportation. The Chinese side presented two papers on "Audit of Railways" in China and "Audit of Funds of Highway Construction and Maintenance". The Chinese delegation visited Mumbai Stock Exchange. The seminar was extremely useful and brought out differences and similarities in the two systems and the manner which problems were resolved.
Participants of the VI th Indo-China Seminar held in Mumbai
from 24th-26th December, 1998
The Office of the Auditor General of Thailand (OAG) is an autonomous and independent statutory body reporting directly to the Prime Minister. The State Audit Act 1979 provides a mandate for OAG to undertake both financial and performance audit functions to improve accountability in the use of public funds. The OAG and its 15 regional offices conduct audits of the activities of all government departments, agencies andenterprises, including local government bodies.
To keep up with advancing technology OAG introduces computers for its use. Computer system first installed in 1992, at both head office and its twelve regional offices (fifteen in 1996), consisted of 311 microcomputers, 1 super mini computer, and 12 mini computers. Each office has a mini computer which is connected with a group of personal computers to make a Local Area Network (LAN). All regional offices' LAN systems are linked to the mini computer in the Computer Center at the head office via telephone line on a dialing system. At present the system comprises 29 mini computers (2 at headquarters and 27 at regional offices), 470 microcomputers, and 33 notebooks. As with the network, it is being developed by using leased line and modern network equipment such as enterprise router, switching hubs and firewall. The system is operated by the OAG's Computer Center which has responsibility for developing and implementing information systems. The Center has twenty staff.
The application systems at present are:
- Personnel Information System
- Payroll System
- Procurement System
- Budget System
- Financial Statement Audit Management System
- Financial and Compliance Audit Management System
- Tax and Revenue Audit Management System
- Procurement Audit Management System
- Investigative Audit Management System
- Performance Audit Management System
- Agencies Information System
These applications are developed with the help of computer suppliers.
The Computer Center provides training for staff on general use applications such as MS Windows, MS Word, MS Excel, MS Access and Power Point.
OAG has also set up a computerized post evaluation information system (PEIS) for collection, storage and retrieval of performance evaluation findings, aiming at ensuring effective feedback of evaluation results into decision making. The OAG's PEIS is made accessible by NESDB, BOB and FPO for improving policy analysis and formulation, the process of budget allocation, and design of new projects and programs. This PEIS together with the installation of computer facilities for the purpose was made possible by the technical assistance from Asian Development Bank.
The OAG home page in Thai and English languages will be operational around January 1999.
As OAG's audited agencies, especially state enterprises, has increasingly used EDP systems. OAG is well aware that the development of EDP systems has influenced audit methods and techniques and that audit staff capable of auditing computer systems is badly needed. IT Audit Group was formed in February 1997, consisting of 8 members. It is expected that the IT Audit Group be the focal point for developing computer audit expertise and for training staff of OAG's audit divisions/offices and regional offices. The group works out OAG's use of computer assisted audit techniques (CAATS) as an audit tool. ACL (Audit Command Language) is adopted for the purpose. The group assists auditors in the use of this audit software and also encourages them to make greater use of this tool e.g. for data downloading, data extraction and analysis, sampling, etc. ACL has so far been applied to audits of various state enterprises such as Krung Thai Bank Public Co., Ltd., Thai Airways International Public Company Ltd., Petroleum Authority of Thailand, The Government Housing Bank, Bank for Agriculture and Agricultural Cooperatives, etc.
OAG finds using CAATs very helpful as it helps making efficient and effective use of its audit resources and improving quality of audit work as well.
Training for computer staff and for staff involved in CAATs work is provided through on-the-job training and external courses as appropriate. A number of staff had attended computer courses overseas, including those conducted under the aegis of ASOSAI by various member SAIs. Two staff also obtained their Master of Information Systems with scholarships from the Canadian Government and the Australian Government.
The use of computer technology in the OAG continues to grow to meet the changing environment in which it operates. The Auditor General commits himself to this as he is well aware-that computer technology helps enhance productivity of the work of the office and that advancing technology causes those without related development to be left further behind.