Board of Supreme
Audit
The Historical development:
The Board of supreme audit has passed through four successive stages
each one represented by issuance law of the laws of financial audit .
The first stage 1927-1968:
According to the
law no .(17)1927 office of auditing general accounts established which was
known later as ``Board of accounts auditor general`` two amendments made on
this law for extending the duties of the Board of accounts auditor general .
The following items show the defaults of the board performance during
the above mentioned period:
A-The scope of the Board work was not absolute as the second article of
the law defined the bodies and the fields by which the Board can fulfil the
audit activities while the other required legal provision .
B-Some of the administrative and financial specialties of the Board
bounded to a certain degree because they subjected to the provision and
supervision of the ministry of finance as the election of the accounts auditor
general about the board staff and his conducting of the budget is submitted to
the audit and approval of the ministry of finance.
C-The Board had no jurisdiction which assisted the executive auditing of
not being concerned about the Board reports that consist of highly serious
violations.
D-The law provided that the appointment of the accounts auditor general
made according to the recommendation of the prime minister and the approval of
the cabinet likewise in case of transmitting or removing him so the Board
didn’t have the independence to insure practicing its tasks away from any
influence by the executive authority .
E-The intense weakness which was characterized the Board staffs in
number and qualification because it didn’t go along with the great expansion
which the state actions and activities had been witnessed and the scientific
progress that occurred in the occupation of accounting and audit through the
communication and interaction with the scientific and vocational
associations and the institutions .
In spite of all that what the legislation is mentioned above can be
regarded as advanced step having great influence in making the general
independent audit in Iraq on the upright manner which matches in its trend what
is the most modern adopted in the advanced countries in this field.
The second stage 1968-1980:
The socialist developments that the country witnessed after February
revolution 1963 and its resultant of wide development plans led the country to
work on developing the audit institution in Iraq by broadening its authorities
and specializations elevating its efficiency so that it could match with
the occurring development in the state functions the transitional law provided
of establishing the authority of financial audit which is called The Board of
Supreme Audit related to the revolutionary command council and substituted of
auditing the actions of the executive authorities and organized its affairs by
a special law .
The law No. (42) 1986 is legislated and enabled of determining the
following key features :
1-The law enlarged the Board frame work for the institutions which
subjected to its audit from the types of transactions proceeding from these
institutions.
2-The law granted the Board juridical technical administrative and
financial powers which surpassed the powers provided in the previous law which
stipulated the following :-
A-Restricting the preparation and execution of the Board budget to the
audit council.
B-Restricting the appointment of employers in the Board and organizing
their affairs to the audit council.
C-The law granted the council the authority of referring the offenders
to a discipline committees and competent courts after putting them under
investigation.
d- The council of financial control is empowered by the law to suspend
the violator or remove him temporarily.
e-The significance habilitation and development of the Board staffs is
asserted by the law.
f- Employees of the Board are endowed with some privileges like allowances
and auditing allocations.
g- Board of supreme Audit is empowered pursuing the different kinds of
audit and it asserted the significance of practicing of performance and
efficiency.
h- Council of financial control is authorized by the law to claim an
amendment to be made to laws , regulations and instructions if the Board deemed
that the lack of efficiency is resulted from the deficiency of legislation .
I-The Board is authorized by the law to reporting to different
administrative levels in addition to submitting a special annual report to the
legislative authority.
j-Authority of financial control is granted some legal immunities by the
law.
Phase 3 (1980-1990)
As a result the wide economic development and practical difficulties
accompanied the application of act (42)-1986, and they are:
a-The Board was empowered with jurisdiction powers that weren't
practiced while the act was valid.
b- The deficiency of the Board’s organizational structure and its
incompatibility with that of the state.
c- The Board’s indistinctive area of responsibility .
d- The indistinctivity and inaccuracy in determining the Board’s
objectives .
e- Inexistence of necessary stability to the chairman and members of the
council and the hardness of committing to the conditions of appointing a
president and members to the council of financial control .
f-Not providing enough flexibility to make changes to the components in
away that secures apprehension of variables in work .
Thus, act no. (194) was enacted to be known with the following features:
a-The clarity of goals established in Article (2) of the law .
b-The Board’s area of responsibility is established in a clear and
accurate way that was defined in Article (3) of the
law .
c-The Financial independence of the Board is
promoted through the law (especially when
related to its budget).
d-The Board’s area of responsibility was widened by the law and as
provided in Articles (3) and (4) .
e-The law eliminated some unapplicable provisions in the old law
including some jurisdictions .
f-The law handled administrative formations in a way that goes
along with the nature of the Board’s activity and the administrative divisions
of the government institutions.
g-The condition of appointment to primary positions in the light of the
new law gives more stability to the board and brings people with the required
qualifications and experiences to practice the activities of the Board .
h-The law widened the financial privileges of the Board employees.
The law asserted the importance of developing the Board
staffs by arranging courses, giving chances for habilitation and
increasing knowledge .
Phase 4 (1990 – up to now)
Article (6) – (1990) ,(The Board of supreme Audit law) was enacted
and still into force the purposes of:
Setting the role, duties, and specialties of the Board of supreme Audit
and enhancing it’s role to participate in improving the performance of the
state’s institutions . to enable this Board to secure the auditing requirements
and its needs of resources ,civil equipments , and information whether to say
an opinion about the truth of the financial situations and the activity results
or to evaluate the performance of executive institutions under its
review . to find administrative and organizational structures that go along
with the phases of the development of national economy and gives enough
flexibility to the Board in planning and assigning duties and specialties .
To secure the required central supervision to direct
controlling tasks and developing the bases principles ,means and
ways of implementation and assess the results In addition to enabling the
Board to cover all the services and institutions of the state in the
governorates with auditing and supervision with the highest level of competence
and efficiency .
● Strategic Goals of the Board
These are represented in the following:
1. Keeping the public fund.
2. Support of the public accountability.
3. Enhancing economy.
Below we shall survey tasks and authorities of the Board and the scope
of its control in the light of the Board by-law No. 6 of 1990 and its
amendments.
A. Article 2 of the by-law
explained the tasks done by the Board which are as follows :
1. Controlling and auditing accounts of parties subject to control and
making sure of applying financial laws, regulations and instructions
2. Controlling and assessing performance
3. Offering technical support in the audit and control fields
4. Disseminating accounting & audit systems based on internationally
approved standards
5. Through auditing and performance assessment, uncovering evidence of
corruption, fraud, wasting, mal-tackling, inefficiency in receiving, expending
and dealing with public wealth
6. Investigating & informing of expending efficiency, and use of
public wealth as it is officially required by the national legislative
authority.
7. All claims of corruption, fraud, wasting, bad use or
inefficiency in expending or using the public fund are referred to the General
Inspector of the relevant Ministries or directly to the Integrity Commission as
it is deemed suitable.
8. Imposing systems and procedures to act as a supreme audit body in
Iraq.
B. The Board Specialties and Authorities
1. Checking & auditing state revenues and
expenditures and all other financial obligations in a planning or taxing or
expending manner.
2. The Board has the right to be acquainted with
the documents and dealings relevant to the financial control tasks be they
ordinary or secretive
3. Doing audit & control according to rules
and independents standards and customary ways and methods.
4. In case of non availability of necessary
records for the Board to do audit and performance assessment, it can
submit a written request to the General Inspector of the relevant Ministry which
in the span of two days has to furnish the records to the Audit Board or
explain the reasons that were conducive to non availability , yet in case of
the Board being not convinced the whole matter is referred to the
Integrity Commission.
5. The Board has the authority to audit the
secretive programs and to issue secret reports since the auditor has the proper
security authorization.
6. The Board has the authority to do financial
evaluation of the state contracts
C. Scope of the Board Work
It comprises the following parties:
1. State offices and Govt. sector which deals
with the public wealth in taxing , expending , planning, exchanging, trading,
or service producing are subjected to the Financial Control.
2. Courts are exempted from the rule of Para (A)
concerning their legal specialties.
3. Mixed sector companies, societies and consultant offices.
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