SAI Afghanistan: Changes and recent developments
The Supreme Audit Office is endeavoring to keep pace with the requirement of the updated ISSAIs framework; meet the conditions set by the development partner’s benchmarks and achieve and effective basis of an independent SAI to deliver quality audit products. The following changes are noteworthy –
Monitoring mechanism for status of implementation of audit recommendations by the auditee - a mechanism for the following up on the audit findings has been developed to monitor, collect and analyse the status of implementation of the audit recommendations by the audit entities. This is also a benchmark under development partners’ agreements. The information base of follow up provide basis for verified status of implementation of the audit recommendations. It highlights the value added by audit.
Professional Capacity Development – on the basis of the overall framework of the INTOSAI Capacity Development Committee (CDC), the SAO has put in place a long term professionalization and capacity development plan and strategy. The strategy seeks to capacity development through a multi-pronged approach which includes in-house training and training with the support of other SAIs, professional certification, recruitment of already professionally qualified personnel. The SAO in 2019 has set up Training and Capacity Development Centre. The Centre is responsible for conducting an annual programme for about 100 fresh entrants / auditors with syllabus based on standard materials and courses comprising papers of accounting, audit and assurance, public financial management, Afghanistan Business and Administrative Laws, IS / CAATS, etc.
Additionally, SAO has also undertaken the following for capacity development and training. o English proficiency classes for 122 staff based on need analysis through MoU with an English teaching Institute.
o Foundation in Accountancy class for 139 staff who are proficient in English.
o IPSASs class for 13 staffs to enable them to pursue IPSAS based certification / diploma.
o The SAO has recruited 20 ACCA students as Internees for six months.
Functional Review of the SAO - As per a Government-wide initiative, the SAO has undertaken functional review to assess its organisational structure, operation and processes, adequacy of the staff and skill-sets, their efficiency and effectiveness and to identify redundancies, duplicacy, non-aligned processes and structures, and adequacy to meet the SAO’s mandate as an institution of public trust and contribute to accountable, transparent and effective public financial management in the country. It also seeks to assess how best to meet the requirement of the ISSAI framework. An international functional review expert is at advance stage of completing the work.
According to the ISSAIs framework, the SAO shall carry out its functions and responsibilities as a Supreme Audit Institution, and as a member of INTOSAI, ASOSAI, ECOSAI, and INCOSAI.
Research, Development and Training Committee (RDTC)– The SAO set up a research, development and training committee with the prime objective of conducting research and studying the best / good practices and applicable standards and emerging changes and innovations in the field of auditing, financial reporting, IT audit, internal control system and internal audit, CAATTs, etc., and to provide inputs for development, updating and innovating the SAO’s audit approach, methodology, audit process and management and quality control and for training and capacity building of the SAO staff through training.
The RDTC, based on the ISSAIs and ISSAI implementation Handbooks has developed manual and audit toolkits for financial audit and compliance audit to provide standardised and ready-to-use toolkits and templates including for availability of audit working papers and absorb principles, practices, standards and guidelines of the ISSAIs.
Financial Audit within SOEs & SOCs Audit Directorate -Due to inadequate capacity and skills, earlier, the SAO was not able to undertake audit of the financial statements of the State owned Enterprises / Corporations (SoEs/SoCs) for which the SAO is mandated. In 2019, SAO has undertaken and completed audit of three (03) SoEs/SoCs. One of these, was piloted by including SAOstaffs who underwent training conducted by the Swedish National Audit Office. The SAO has planned at least 10 SoEs/SoCs audit in 2020.
Establishment of IT Audit Directorate – Though SAO Afghanistan started conducting IT audits in 2017, it was conducted by staff within the IT Department which mainly dealt with IT infrastructure and equipment. In 2019, however, a full-fledged IT Audit Directorate has been set up. This was a significant achievement, and a first step to separate IT audit professional work from IT support and administration. This is also based on the recognition of the importance of IT audit in achieving SAO’s strategic objectives in providing assurance on IT governance, integrity, security, effectiveness and efficiency of IT systems/programs in light of emerging technology risks faced by Government of Afghanistan (GoA).
To this end, SAO Afghanistan is committed to building sustainable capacity to conduct quality IT Audits in Government Sector, and achieving the following goals and objectives:
- To Have Adequate IT Audit Capacity, Organizational and Professional Development
- To Expand Coverage of IT Audit
- To Provide Timely, Effective and High-Quality IT Audit Services
Audit Report Proof Reading Committee - The SAO is seeking to assure quality audit products through several means. One being dedicated team to go through the draft audit reports, which have already travelled through the audit teams and the middle level supervision but pending final approval. A Proof Reading Committee (PRC) established in June 2019 under the supervision of Professional Deputy Auditor General is responsible for review and value addition through assurance about quality of audit reports.
Design and Preparation of Stakeholders Engagement Strategy and Action Plan - The SAO recognizes the importance of demonstrating relevance to citizens and other stakeholders in order to strengthen the SAO capacities and effectiveness in holding the government to account for the use of public resources. We acknowledge that by communicating simply and clearly with our stakeholders, they will have clear expectations, a greater understanding of our work and responsibility. We believe this approach involves not just agreeing with our stakeholders, but also understanding and recognizing their beliefs, ideas, values, and perceptions. Developing stakeholder relationships that demonstrate this shared understanding provides a foundation upon which interactive communication can exist with stakeholders whose interests are vested in our work.
The Objectives of the Stakeholder Engagement Plan are:
Identifying and categorizing stakeholders based on their degree of influence on the decision-making process and degree by which they are directly impacted by the result Listen to the need and concern of all stakeholders Providing the necessary information that stakeholders need to understand the options and that decision-makers need to make informed decisions. Consulting with decision-makers to determine options for addressing stakeholders need and considering and easing their concerns Engaging or preparing with stakeholders in the decision-making process Attract public confidence on SAI for better transparency and accountability Enhance CSO's and citizen's participation in promoting legitimacy, transparency, accountability, and independence of SAO. Strengthen Strategic communications with Stakeholders and obtaining their strategies and policies. Strengthen the quality and efficiency of audit through cooperation with development partners and other entities. Improve Government’s Accounting services and General Administration by Transparency and enhance support to operations of SAO.
