sou · GPB397 · 2002-01-01 00:00:00 — 1.Supreme Audit Institutions shall have access to all records and documents relating to financial management and shall be empowered to request, orally or in writing, any information deemed necessary by the . 2.For each audit, the shall decide whether it is more expedient to carry out the audit at the institution to be audited, or at the itself. 3.Either the law or the (for individual cases) shall set time limits for furnishing information or submitting documents and other records including the financial statements to the . 1.The audited organisations shall comment on the findings of the within a period of time established generally by law, or specifically by the , and shall indicate the measures taken as a result of the audit findings. 2.To the extent the findings of the 's findings are not delivered as legally valid and enforceable judgments, the shall be empowered to approach the authority which is responsible for taking the necessary measures and require the accountable party to accept responsibility. Expert opinions and rights of consultation When necessary, Supreme Audit Institutions may provide Parliament and the administration with their professional knowledge in the form of expert opinions, including comments on draft laws and other financial regulations. The administrative authorities shall bear the sole responsibility for accepting or rejecting such expert opinions; moreover, this additional task must not anticipate the future audit findings of the and must not interfere with the effectiveness of its audit. Regulations for appropriate and as uniform as possible accounting procedures shall be adopted only after agreement with the . V. Audit methods, audit staff, international exchange of experiences Audit methods and procedures 1.Supreme Audit Institutions shall audit in accordance with a self- determined programme. The rights of certain public bodies to request a specific audit shall remain unaffected. 2.Since an audit can rarely be all-inclusive, Supreme Audit Institutions as a rule will find it necessary to use a sampling approach. The samples, however, shall be selected on the basis of a given model and shall be sufficiently numerous to make it possible to judge the quality and regularity of financial management. 3.Audit methods shall always be adapted to the progress of the sciences and techniques relating to financial management. 4.It is appropriate for the to prepare audit manuals as an aid for its auditors. 1.The members and the audit staff of Supreme Audit Institutions shall have the qualifications and moral integrity required to completely carry out their tasks. 2.In recruiting staff for Supreme Audit Institutions, appropriate recognition shall be given to above-average knowledge and skills and adequate professional experience. 3.Special attention shall be given to improving the theoretical and practical professional development of all members and audit staff of SAIs, through internal, university and international programmes. Such development shall be encouraged by all possible financial and organisational means. Professional development shall go beyond the traditional framework of legal, economic and accounting knowledge, and include other business management techniques, such as electronic data processing. 4.To ensure auditing staff of excellent quality, salaries shall be commensurate with the special requirements of such employment. 5.If special skills are not available among the audit staff, the may call on external experts as necessary. International exchange of experiences 1.The international exchange of ideas and experiences within is an effective means of helping Supreme Audit Institutions accomplish their tasks. 2.This purpose has so far been served by congresses, training seminars jointly organised with the United Nations and other institutions, by regional working groups and by the publication of a professional journal. 3.It is desirable to expand and intensify these efforts and activities. The development of a uniform terminology of government audit based on comparative law is of prime importance. Reporting to Parliament and to the general public 1.The Supreme Audit Institution shall be empowered and required by the Constitution to report its findings annually and independently to Parliament or any other responsible public body; this report shall be published. This will ensure extensive distribution and discussion, and enhance opportunities for enforcing the findings of the . 2.The Supreme Audit Institution shall also be empowered to report on particularly important and significant findings during the year. 3.Generally, the annual report shall cover all activities of the ; only when interests worthy of protection or protected by law are involved shall the carefully weigh such interests against the benefits of disclosure. 1.The reports shall present the facts and their assessment in an objective, clear and be limited to essentials. The wording of the reports shall be precise and easy to understand. 2.The Supreme Audit Institution shall give due consideration to the points of view of the audited organisations on its findings. Audit powers of Supreme Audit Institutions Section 18, Constitutional basis of audit powers; audit of public financial management 1.The basic audit powers of Supreme Audit Institutions shall be embodied in the Constitution; details may be laid down in legislation. 2.The actual terms of the 's audit powers will depend on the conditions and requirements of each country. 3.All public financial operations, regardless of whether and how they are reflected in the national budget, shall be subject to audit by Supreme Audit Institutions. Excluding parts of financial management from the national budget shall not result in these parts being exempted from audit by the . 4.Supreme Audit Institutions should promote through their audits a clearly defined budget classification and accounting systems which are as simple and clear as possible. Audit of public authorities and other institutions abroad As a general principle, public authorities and other institutions established abroad shall also be audited by the . When auditing these institutions, due consideration shall be given to the constraints laid down by international law; where justified these limitations shall be overcome as international law develops. Supreme Audit Institutions shall be empowered to audit the collection of taxes as extensively as possible and, in doing so, to examine individual tax files. 2 Tax audits are primarily legality and regularity audits; however, when auditing the application of tax laws, Supreme Audit Institutions shall also examine the system and efficiency of tax collection, the achievement of revenue targets and, if appropriate, shall propose improvements to the legislative body. Public contracts and public works 1.The considerable funds expended by public authorities on contracts and public works justify a particularly exhaustive audit of the funds used. 2.Public tendering is the most suitable procedure for obtaining the most favourable offer in terms of price and quality. Whenever public tenders are not invited, the shall determine the reasons. 3.When auditing public works, the shall promote the development of suitable standards for regulating the administration of such works. 4.Audits of public works shall cover not only the regularity of payments, but also the efficiency of construction management and the quality of construction work. Audit of electronic data processing facilities The considerable funds spent on electronic data processing facilities also calls for appropriate auditing. Such audits shall be systems-based and cover aspects such as planning for requirements; economical use of data processing equipment; use of staff with appropriate expertise, preferably from within the administration of the audited organisation; prevention of misuse; and the usefulness of the information produced. Commercial enterprises with public participation 1.The expansion of the economic activities of government frequently results in the of enterprises under private law. These enterprises shall also be subject to audit by the if the government has a substantial participation in them-- particularly where this is majority participation--or exercises a dominating influence. 2.It is appropriate for such audits to be carried out as post-audits; they shall address issues of economy, efficiency and effectiveness. 3.Reports to Parliament and the general public on such enterprises shall observe the restrictions required for the protection of industrial and trade secrets. Audit of subsidised institutions 1.Supreme Audit Institutions shall be empowered to audit the use of subsidies granted from public funds. 2.When the subsidy is particularly high, either by itself or in relation to the revenues and capital of the subsidised organisation, the audit can, if required, be extended to include the entire financial management of the subsidised institution. 3.Misuse of subsidies shall lead to a requirement for repayment. Audit of international and supranational organisations 1.International and supranational organisations whose expenditures are covered by contributions from member countries shall be subject to external, independent audit like individual countries. 2.Although such audits shall take account of the level of resources used and the tasks of these organisations, they shall follow principles similar to those governing the audits carried out by Supreme Audit Institutions in member countries. 3.To ensure the independence of such audits, the members of the external audit body shall be appointed mainly from Supreme Audit Institutions.