Asian Organisation of Supreme
Audit Institutions (ASOSAI)
Presentation by Mr. Shankar Narayan,
ASOSAI representative (SAI India)
During
AGM of ARAPAC, October 2012
ASOSAI
• Established in : 1979 with 11 members
• No. of Member SAIs : 45 SAIs (as of October 2012)
• Objectives :
1) To promote understanding and cooperation
through exchange of ideas and experiences;
2) To provide facilities for training and continuing
education for government auditors; and,
3) To serve as a regional link with other relevant
organizations in the field of public audit, etc.
2
Organisation

Governing Board- 11 Members
SAIs of India (Chair), Korea, Bangladesh, China, Japan,
Malaysia, Pakistan, Philippines, Russia,Saudi Arabia, &
Thailand

Secretary General
SAI Korea

Training Administrator
SAI Japan

Audit Committee Members
SAIs of Turkey & Jordon
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Role of SAI India in ASOSAI
Comptroller
& Auditor General of India hosted the 12th
ASOSAI Assembly and became the Chair of ASOSAI,
Governing Board on 29 Feb. 2012
Publishes the ASOSAI Journal of Government Audit
twice (April & October) in a year
Member of ASOSAI, Working Group on Environment
Audit (WGEA)
Member of 10th ASOSAI Research Project (ARP) on
“Audit to Detect Fraud and Corruption: Evaluation of the
Fight against Corruption and Money Laundering”
4
Institutional Set-up for
Capacity Building Activities
•
Article I, the Charter of ASOSAI:
- “To provide facilities for training and continuing education for
government auditors with a view to improving the quality of their
performance.”
•
The ASOSAI Strategic Plan for 2011-2015:
- Goal 1: “Institutional Capacity Building”
- Goal 2: “Knowledge Sharing and Knowledge Services”
•
The ASOSAI Budget:
More than 95% of the budget has been used for ASOSAI-sponsored
capacity building activities since 1992 when ASOSAI launched capacity
building programs for its member SAIs with its own funds.
5
ASOSAI and ARAPAC
All the countries represented in ARAPAC
also represented in ASOSAI except Timor
Leste
 Common goal of promoting accountability,
transparency and good governance
 ARAPAC Secretary General,
Parliament of Bhutan made a presentation
during 12th ASOSAI Assembly in India

6
UN General Assembly Resolution

Adopted by 66th General Assembly
Resolution no. A/RES/66/209 on 22nd Dec.
2011

Promoting the efficiency, accountability,
effectiveness and transparency of public
administration

By Strengthening SAIs
7
Emphasis of Resolution

Need to improve the efficiency,
accountability, effectiveness and
transparency of public administration.

Need for capacity-building as a tool

Cooperation of the INTOSAI and UN
8
Emphasis of Resolution
Necessity of SAIs independence
 Important role of SAIs in promoting
efficiency, accountability, effectiveness and
transparency of public administration.
• Appreciate the work of INTOSAI
• Appreciate Lima Declaration & Mexico
Declaration

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SYNERGY Defined
 Interaction
or cooperation of
two or more organizations,
substances or agencies to
produce a combined effect
greater than the sum of their
separate effects. (COD)
Democracy and Accountability

Democratic governance and
accountability basic principles of Indian
Parliamentary system

Accountability of the executive to
legislature is required as legislature
embodies the will of the people.
Accountability and oversight invariably
signify good governance.
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Democracy and Accountability

Legislature should be able to ascertain the
manner in which public policy laid down
by it is implemented.

Public financial accountability in India is
established through two agencies:
legislative oversight committees like PAC
and CoPU and Comptroller & Auditor
General of India(CAG/SAI).
Democracy and Accountability

The legislature sanctions money to
Government through the Budget and then
supervises its expenditure, through the
Public Accounts Committee and
Committee on Public Undertakings.

CAG’s audit was envisaged as part of the
system of Parliamentary oversight over
national finances.
Democracy and Accountability

The Public Accounts Committee is often
called the mother of all committees.

PAC is the oldest committee of
Parliament and is constituted every year
under Rule 308(1) of the Rules of
Procedure and Conduct of Business in
Lok Sabha
Objectives of PAC
To see that

Money voted by Parliament was actually spent by the
executive for the purpose decided by Parliament.

All re-appropriations were done under the rules
framed for the purpose.

All excesses/savings are regularized
(Constitutional Responsibility- Art. 115).
Functions of PAC

Examination of accounts appropriated by
the executive as certified by CAG

Study the SAI’s Audit Report on accounts
SAI of India (CAG)

Comptroller and Auditor General of India is
the Supreme Audit Institution (SAI) of
the country.

An officer of the Constitution, his duty is to
audit all expenditure and receipts of
the Union and the States, and UT
Governments, and also various bodies and
authorities set up by Government.
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CAG’s Functions
Duties of CAG

Sole auditor of Federal & State governments

Sole auditor of urban and rural local bodies

Sole/auditor of govt. authorities –statutory

Auditor of government companies
Relationship between PAC and
CAG

A legal relationship as spelt out in Rules
of Procedure & Conduct of Business.

CAG of India is a constitutional authority
mandated to audit expenditure and
receipts of government and place the
Audit Report in Parliament
PAC and CAG

CAG’s reports form the basis of the
Committees’ working, though they are
not precluded from examining issues not
brought out in the reports.

In actual practice very rare. Only a few
cases of CoPU, in India, commissioning
studies and doing work independent of
CAG.
PAC Procedures
PAC and CAG decide upon course of action
for the year and selection of material for
oral examination
 PAC summons witnesses (Secretaries to
Government) for oral examination. CAG
briefs the PAC and also gives a list of
questions (Memorandum of Important
Points).
 PAC questions the witnesses.
 After examination is complete PAC finalizes
recommendations.

PAC Procedures

Printed PAC report or recommendations
placed in Parliament.

Government accepts recommendations and
takes action. This is given to PAC as
Action Taken Note (ATN).

PAC and CAG study ATN and either
conclude session if satisfied or go in for
further examination.
Synergy - Best Practices

PAC/ CoPU need the Audit Report to
work and CAG needs the PAC/ CoPU to
optimize output and effectiveness.

A convergence of interests, objectives
coterminal.
Synergy - Best Practices





A continuous dialogue between PAC and CAG
CAG should establish its reliability and integrity
- audit standards, training, peer review.
CAG to assure complete independence.
PAC and CAG to work together to set year’s
agenda and prioritize subjects.
CAG could brief PAC at beginning of year on
processes and procedures.
Synergy - Best Practices



Continuity in PAC –Chairman for two
years, half the Members to change every
year.
CAG could conduct seminars, workshops
for PAC and offer reading material to
members interested in specific subjects.
PAC could constitute sub committees to
study different departments like Fisheries,
Transport, Education, Agriculture, Mining,
Health, etc.
Synergy - Best Practices

Finally, PAC Chairman must finalize
recommendations immediately after
examination, achieve consensus, have PAC
report signed by all members and place it
before Parliament.

Till recommendations are presented to
Parliament, discussions are inconclusive.
Report could be on a department, a
programme or an Audit Report or part of a
Report.
Synergy - Best Practices

CAG seconds staff to PAC and CoPU for
manning their secretariats. The staff, being
familiar with Audit work, could help the
Chairman a great deal.

There is a lot to commend this practice,
especially when most PACs are starved of
staff.
Role of CAG vis a vis PAC

Accounts certified by CAG and Audit
Reports- the basis of PAC’s working

CAG helps the PAC select audit material
for detailed examination

CAG briefs the PAC before oral
examination
Role of CAG vis a vis PAC
CAG scrutinizes the material submitted
by government
 CAG can, with permission of the Chair,
offer or seek clarification during oral
examination.
 CAG vets the draft report of PAC for
factual accuracy
 CAG vets the government’s Action Taken
Report on PAC’s recommendations

Role of CAG vis a vis PAC

PAC and CAG thus work together with
PAC being a mini Parliament overseeing
Government expenditure and the SAI
providing the necessary inputs in the form
of certified accounts and Audit Reports.

Oversight of the executive by Parliament
is important in a democracy and that over
sight is the main function of PAC.
Role of CAG vis a vis PAC

In India PAC looks upon CAG as friend,
mentor and guide.
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PAC and CAG

Thus ,
SYNERGY
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Interaction -Board of Audit of Japan
(BAI) & Diet (Legislature of Japan)
BAI submit Audit Reports to the Diet
 Provides Explanation to Ministry of
Finance
 Training courses for auditee Ministries
 Briefing Audit Report to each Ministry
 Analyses auditees internal control

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Reporting procedure
The Board prepares Audit Report yearly
with audited final accounts
 Submits Audit Report to the Cabinet
 Cabinet submits Audit Report to the Diet
 Audit results inform public the execution
of state budget.

37
Board of Audit & Inspection (BAI),
Korea

BAI as an agency under the President

Report audit results to the President
and the National Assembly

Full audit results publishes on BAI's website
and distributed the press release

National Assembly may request the Board of
Audit and Inspection to conduct the audit
38
Board of Audit & Inspection (BAI),
Korea

BAI shall report the audit results within 3
months from the date of receiving the
request
39
Comptroller and Auditor General of
Bangladesh & PAC
CAG has fully independent audit mandate
 Submits audit reports to the President
 President causes them to be laid before
the Parliament.
• Public Accounts committee of the
Parliament acts upon the audit reports
• PAC calls upon the concerned Principal
Accounting Officer (the secretary of the
ministry)

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Comptroller and Auditor General of
Bangladesh & PAC
To account for the audit findings, audit
opinion and recommendations.
 After discussion the committee gives
directions to executives or auditee on
each audit para.
 Sometimes the PAC may ask the CAG to
make a review on the implementation of
the directions given by PAC.

41
National Audit Authority, Cambodia
NAA is an independent public entity and
has own budget
 The NAA reports directly to the National
Assembly, Senate, and royal government
 Royal Government submits budget statements to the NAA for auditing. NAA cer
tify these statements and issue the audit
reports to the National Assembly and
the Senate.

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National Audit Authority, Cambodia
If the Government fails to submit budget
settlement to NAA within a period of 9
months after the end of the financial year.
Auditor-General have to report this delay
to the National Assembly and the Senate.
 The Auditor-General issues report to the
National Assembly, the Senate, the
Council of Ministers, Ministry of Economy
and Finance and relevant ministries.

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National Audit Authority, Cambodia

•
Report to the Parliament and Senate are
discussed by the Second Commission of
finance, banking and auditing
Follow up procedure of examination on
the audit report will be done by the
Second Commission
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National Audit Office of the
People’s Republic of China (CNAO)
Auditor General is a member of the State
Council and CNAO is under the direct
leadership of the Premier of the Council
 CNAO is authorized by law to issue
circulars about their audit findings to the
relevant government departments

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National Audit Office of the
People’s Republic of China (CNAO)

The work report is submitted to the
Standing Committee of the National
People’s Congress and made available to
public at the same time except for state
secrets or business secrets of the auditees
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PAC and CAG
Thanks