Country Paper by the SAI Pakistan on

1. The First ASOSAI_EUROSAI Joint Seminar on“Challenges for ensuring transparency and accountability in public financial management” Country Paper by the SAI Pakistan on “The importance of enhancing the quality of SAI Reports, and their impact on Parliament with reference to ensuring accountability and transparency” Asia Sherazi,Director Audit, SAI Pakistan

2. Sequence • Introduction • Accountability paradigm in Pakistan • Initiatives taken by the SAI Pakistan for enhancing the quality of Audit Reports • Impact of the SAI Reports • Way forward

3. Parliamentary financial control (Select committees)

4. Importance of SAI reports • A tool for the Parliamentary financial control and oversight • Comprehensive and competent external audits required for effective scrutiny by the legislature • Quality audit reports vis-à-vis enhanced accountability and transparency in governmental operations

5. Accountability paradigm in Pakistan

6. SAI Pakistan • Known as Auditor General of Pakistan • Appointed by the President under Article 168 of the Constitution • Conducts audit of all (Federal, Provincial , District) government entities • Submits audit reports to the President and Governors to be laid before the National/Provincial Assemblies and discussed in Public Accounts Committees

7. Initiatives taken by the SAI Pakistan for enhancing the quality of Audit Reports • Project to improve financial reporting and auditing (PIFRA) • Financial Audit Manual (FAM) and guidelines • Quality Management Framework(QMF) • Code of ethics

8. PIFRA • Launched in 1994 • Audit Component facilitated Department of Auditor-General of Pakistan to modernize its auditing processes: • Financial Audit Manual was prepared and implemented • Risk based audit methodology was introduced at all the three tiers of government • Certification audit cycle was reduced from 22 to 8 months • Audit Command Language (ACL) was introduced in field audit offices, and • AGP staff had been equipped with modern working accessories

9. FAM & Sectoral Guidelines • Launched in 2006 • Introduced methods and approaches based on INTOSAI Auditing Standards & international best practices • Provides guidance throughout the Audit Cycle

10. QMF • Launched in 2010 • Draws on ISSAI 40, which is an adaptation of the International Standard on Quality Control • Provides for quality assurance procedures at all stages through quality assurance, control & improvement mechanisms

11. Code of Ethics • Adoption of COE was formalized in 2002 • COE Plan being made to ensure adherence to Integrity, Independence, Objectivity and Impartiality, Professional Secrecy & Non disclosure , Competence • Its impact would be widespread awareness of COE among the staff of DAGP and its strict implementation

12. Impact of SAI reports(Audit activity 2010-2011)

13. Impact of SAI reports(Recovery made at the instance of audit)

14. Impact of SAI reports(Systemic improvements)

15. Way forward For SAI Reports to create rightful impact, continuous efforts are required: • The code of ethics should be made a part of staff contracts • Accountability in the Supreme Audit Institution be ensured • Internal audit function be strengthened • Necessary dissemination arrangements for the audit reports should be clearly laid down in the legislation • Public Accounts Committee processes be improved • An effective channel of communication between the civil society and the accountability institutions should be maintained

16. Thank You