The Board of Audit and Inspection
of the Republic of Korea
Contents
Ⅰ
History and Organization
II
Audit Activities
Ⅲ
International Cooperation
Ⅳ
Reform of
the National Audit System
History and
Organization
History of the Board of Audit and Inspection
in 1963
The Board of Audit
The Commission
of Inspection
-4-
Legal Status
Article 97 of the Constitution
-5-
Responsibilities
Audit
Inspection
Settlement of the accounts
of the State
Report its findings to
the President and the
National Assembly
Audit of the accounts
of the State, provincial
governments and
government-invested
organizations
Examination of the works
of government agencies
and the duties of their
employees
Improve Public Services
-6-
Organization
Organization Chart
Chairman
Council of
Commissioners
Secretary
General (SG)
1st Deputy
SG
2nd Deputy
SG
Deputy SG for
Inspection of
Public Service
4 Bureaus &
1 Group
3 Bureaus &
3 Group
2 Bureaus &
2 Groups
(20 Divisions)
(22 Divisions)
(12 Divisions)
Deputy SG for
Planning & Mgt.
4 Divisions
Audit & Inspection
Training Institute
Audit & Inspection
Research Institute
-7-
Council of Commissioners
Highest Decision-Making Body
-8-
Secretariat
Audit/Inspection Operations Bureaus

Financial Management and Economy Audit Bureau

Financial Markets and Funds Audit Bureau

Construction and Environmental Audit Bureau

Public Institutions Audit Bureau

Social Welfare Audit Bureau

Government Administration and Cultural Audit Bureau

Provincial and Local Governments Audit Bureau

Special Investigations Bureau
 Audit
Requests Investigation Bureau

Strategic Programs Audit Group

Education Audit Group

National Defense Audit Group

Provincial Construction Audit Group

Inspection Information Group

Public Internal Audit Support Group
-9-
Secretariat
Supporting Offices

Planning and Management Office
- Planning & Management, Evaluation & Statistics, Performance Management &
Institutional Improvement, and International Cooperation

Office of the Inspector General

Legal Affairs, Claims Review and Reexamination Office

Public Information Office
 Audit
Quality Management Office
 Administration
Support Office
- 10 -
BAI’s Training and Research Institutes
Audit and Inspection
Training Institute
Audit and Inspection
Research Institute
- 11 -
Personnel
Professionals
in BAI
Audit Staff
897
Total 1,074
Supporting
Staff 177
CPAs
68
Lawyers
35
Professional
Engineers
16
Tax Accountants
6
Doctoral Degree
Holders
44
- 12 -
Audit Activities
- 13 -
Types of Audit
Management Audit
Financial Audit
Types of Audit
Performance Audit
Special Audit
- 14 -
Entities subject to BAI Audit
Field Audit
and여개
Inspection
약 400
About 1,000 Entities
every year
64,375 Entities
Examination of Accounts
Submitted by Auditees
- 15 -
Entities subject to BAI Audit
Central Government Agencies
14%
37%
Provincial /local
Governments
8%
Public Entities
Audit Universe
Government-Supported Entities
and Others
41%
- 16 -
Goals of Audit Activities
Supporting Successful Government Operations
and Increasing the Benefits to Citizens
BAI helps government use taxpayer’s money
in frugal and transparent manner.
- 17 -
International Cooperation
- 18 -
International Cooperation
Served INTOSAI as its Chairman (2001~2004)
- 19 -
International Cooperation
Serving ASOSAI as its Secretary General (2009~ )
- 20 -
Reform of
the National Audit System
- 21 -
Reform of the National Audit System
Audit by
BAI
Internal Audit
Constitution, BAI Act
Legislative
Basis
Presidential Decree, and
Internal Rules
Independent, External Audit
Character
Non-independent,
Part of Internal Controls
Criticism
Internal audit lacks independence and professionalism.
Unclear role division between BAI audit and internal audit caused
overlapping audit and other inefficiencies.
- 22 -
Reform of the National Audit System
- Public Sector Audit and Inspection Act of 2010 Background and Purpose of the Enactment
 The Act governs the whole public audit system, thereby
strengthening the legal basis for internal audit in the public sector.
 The Act, as general law for public sector internal audit, purports
to promote the effectiveness of internal audit by strengthening
independence and professionalism, and establishing audit
standards and procedure.
- 23 -
Reform of the National Audit System
- Public Sector Audit and Inspection Act of 2010 Background and Purpose of the Enactment
 The Act also aims to make clear the role division between the
BAI and internal audit units, and establish a cooperation structure
between them, thereby enhancing the efficiency of internal audit in
the public sector. An enhanced cooperation structure will work for
the benefit of knowledge-sharing and coordination of audit planning.
 The Act also stipulates that BAI provides capacity-building
support for internal audit.
- 24 -
Leading by example
in bringing changes to the government,
we will always do our best
for the benefit of the people.
- 25 -
Thank you!
- 26 -