What are Supreme Audit Institutions (SAIs)?

About Supreme Audit Institutions (SAIs):

• They are public oversight institutions responsible for the audit of government revenue and expenditure.
• They are a critical link in a country’s accountability chain.
• By scrutinizing public financial management and reporting, they provide assurance that resources are used as prescribed.
• Most SAIs derives their mandate from the constitution and/or legislation.
• SAIs undertakes financial audits of organizations’ accounting procedures and financial statements, and compliance audits reviewing the legality of transactions made by the audited body. 
• They also conduct performance audits to scrutinize the efficiency, effectiveness, or economy of government’s undertakings.
• The independence of the SAI from the executive bodies it audits is fundamental to its role in holding governments to account and building trust between the organs of the state and society.
• The Comptroller and Auditor General of India (CAG) and the Indian Audit and Accounts Department (IAAD) functioning under him constitute the SAI of India. 
• Nearly every SAI from a United Nations-member country is a member of the International Organization of Supreme Audit Institutions (INTOSAI).

Key Facts about International Organization of Supreme Audit Institutions (INTOSAI):

• It is a voluntary, non-political organization that works to promote auditing standards, good governance of SAIs, and SAI independence, among other work.
• The INTOSAI was founded in 1953 and has grown from the original 34 countries to a membership of over 192 SAIs. 
• It operates as an umbrella organization for the external government audit community.
• INTOSAI has numerous committees and working groups which examine issues of particular relevance to SAIs, such as developing professional standards for public sector auditing, knowledge sharing, and capacity building.
• It has special consultative status with the Economic and Social Council (ECOSOC) of the United Nations.
• Structure:
  • The International Congresses of Supreme Audit Institutions (INCOSAI) is the supreme organ of INTOSAI and is composed of all the members. On a triennial basis, it holds regular meetings, which is chaired by the hosting SAI.
  • The INTOSAI Governing Board meets annually to provide strategic leadership, stewardship, and continuity of INTOSAI activities between INCOSAI.
  • The CAG of India is a member of the Governing Board of the INTOSAI.

Q1: What is auditing?

An audit is the examination of the financial report of an organisation – as presented in the annual report – by someone independent of that organisation. The financial report includes a balance sheet, an income statement, a statement of changes in equity, a cash flow statement, and notes comprising a summary of significant accounting policies and other explanatory notes.

Source: President Murmu emphasizes role of Supreme Audit Institutions in public funds integrity

‹ ›