10 th ASOSAI Research Project “Audit to Detect Fraud and Corruption ： Evaluation of the Fight against Corruption and Money Laundering” SAI India.

10th ASOSAI Research Project “Audit to Detect Fraud and Corruption ： Evaluation of the

Fight against Corruption and Money Laundering”

SAI India

Delegate

P.K.TiwariAccountant General (A&E)- I UP, AllahabadIndia

Delegate

Kulwant SinghDirector (Personnel) Office of the Comptroller & Auditor General of IndiaNew Delhi.

About the SAI India

• SAI India is headed by the Comptroller and Auditor General of India (CAG)

• CAG is a Constitutional Authority• Independence secured through Parliamentary

enactment; DPC Act• Expenses of his office are charged on the

Consolidated Fund• Fixed six year term and removal is possible only

through Parliamentary process.

About the SAI India

• Indian Audit and Accounts Service

• Constituted in 1919 and forms the senior management cadre.

• Assists the CAG in carrying out its constitutional mandate

• Supported by over 47,000 Audit and Accounts professionals

About the SAI IndiaOver 146 offices throughout India for Auditing •Union and State Government

– Expenditure – Receipt – Public Sector Undertakings

•Rural and Urban local bodies We also compile and prepare State Government Accounts and perform entitlement functions relating to provident fund, pension and pay.

Types of Audit

• Performance Audit

• Compliance Audit

• Financial Audit

• Environmental Audit

• Information Technology Audit

Audit Reports

• Union Audit Reports are laid before each house of Parliament – Civil, Autonomous Bodies, Scientific

Departments, Defence Services, Railways, Direct taxes, Indirect taxes and Commercial

• State Audit Reports are laid before respective legislatures– Civil, Revenue, Commercial and Local bodies

Professional Standards Governing Auditing and Accounting

• Regulation on Audit and Accounts

• Auditing Standards

• Good practice guides

Capacity Building

• National Academy of Audit and Accounts

• International center for Information Systems and Audit

• Regional Training Institutes

• In house training

International Relations• INTOSAI

– CAG is a member of the Governing Board– Chair of the Committee on Knowledge Sharing and Knowledge Services

– Chair of the Working Group on IT Audit

• ASOSAI

– CAG is the Chair of the ASOSAI Governing Board– Asian Journal of Government Audit

• CAG is a member of Global Working Group of Auditors General

• Experience of Auditing UN, WHO, FAO, WFP, IMO, WTO, OPCW, ICGEB etc

• MOUs with SAIs of Afghanistan, Bhutan, Bangladesh, Cambodia Brazil, China, Iran, Kuwait, Maldives, Mongolia, Oman, Poland, Russia, South Africa and Venezuela

Role of Audit in Relation to Cases of Fraud and Corruption

• Responsibility for prevention & detection of fraud and error rests primarily with the management of audited entity

• Audit, however ,evaluate and report on the adequacy of systems in place with the auditee to prevent, detect, respond and take remedial measure in relation to fraud & corruption.

• This is integral part of all kinds of audits.

Role of Audit …• Fraud examination is a part of normal auditing

procedure.

• Audit findings include the cases of presumptive and suspected frauds when the evidence is clear.

• Audit team put red flags which needs further investigations by appropriate agencies.

• Audit teams do not make legal determinations of whether fraud has actually occurred.

Role of Audit …

• Audit teams maintain a attitude of professional scepticism (questioning mind and critical assessment of audit evidence) throughout the audit.

• Audit teams carry out independent risk assessment and prioritise audit planning.

• Based on risk assessment, they design the audit objectives & audit procedures so as to secure reasonable assurance of detecting material irregularities arising from fraud and corruption.

Role of Audit …

• SAI India has a dedicated training institute as Centre of Excellence in ‘Audit of Fraud, Fraud Detection Techniques and Forensic Audit’

• It acts as a repository of information on the subject through developing quality reading material, case studies research papers .

Thank you