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GAC Hub Training Addis Ababa 4-7 June 2007

GAC Hub Training Addis Ababa 4-7 June 2007. External Audit 4-7 June 2007. External Scrutiny and Audit. PI-26 Scope, nature and follow-up of external audit Scope and nature of audit performed Timeliness of submission of audit reports to legislature

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GAC Hub Training Addis Ababa 4-7 June 2007

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  1. GAC Hub TrainingAddis Ababa4-7 June 2007 External Audit 4-7 June 2007

  2. External Scrutiny and Audit • PI-26 Scope, nature and follow-up of external audit • Scope and nature of audit performed • Timeliness of submission of audit reports to legislature • Evidence of follow up on audit recommendations

  3. Contd. • PI - 28 Legislative scrutiny of external audit reports • Timeliness of examination of external audit reports by legislature • Extent of hearings on key findings undertaken by legislature • Issuance of recommended actions by the legislature and implementation by executive

  4. Diagnozing external audit • External audit is more than capacity of SAI. Consider components of effective external audit system: • Ministry of Finance: responsible for producing annual accounts and financial statements, setting FM rules and ensuring compliance • SAI: providing comprehensive external audit • Legislature: authorization and oversight of revenue and spending • Effective audit system is crucial to GAC

  5. Some questions • Does the MF provide annual accounts and financial statements in a timely way, and allow in-year access to books for SAI? • What is legal mandate for SAI? • Pre-audit? • Financial statements • Regularity/compliance • Value for money/performance • Is SAI sufficiently independent? • Anglo/Franco models

  6. Contd. • Does it have sufficient capacity? • Audit methodology • Skills and skill mix • Code of conduct • Staff pay and conditions • Work environment • Annual work plan – risk based? • Tackle procurement?

  7. Legislative oversight • Are SAI reports timely, relevant and readable? • Does PAC have skills? • Are PAC reports timely with clear recommendations? • Are hearings and reports in public domain?

  8. Executive follow up • Does MF take action on SAI/legislature findings and sanction errant officers, remove accounting officer – is stewardship of public finances a factor in career development?

  9. What’s happened? • Extensive updating of colonially inherited audit laws • New laws give SAI greater control over staffing, pay and budgets, and widen scope of audit • Are they using new powers vigorously or does the old culture of avoiding controversy prevail? • Are annual accounts more timely? • Any signs that the MF is taking its stewardship role more seriously?

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