Audit of Mangrove Management in the Strait of Malacca Cooperative Audit SAI of Indonesia (BPK RI) and SAI of Malaysia (JAN Malaysia)

Audit of Mangrove Management in the Strait of Malacca

Cooperative Audit SAI of Indonesia (BPK RI) and SAI

of Malaysia (JAN Malaysia)

AGENDABackgroundThe Audit

Why Strait of MalaccaForm of Cooperation and the LocationAudit Objective and Output Audit Design Matrix, Audit Methodology,

Approach, Technique and toolsThe Impact of Cooperation

Background

Memorandum of Understanding between BPK RI and JAN Malaysia was signed in 4 Nov 2007 in Mexico (INCOSAI)

The implementation areas are audit on taxation, environmental audit and training.

The Environmental Audit :First Cooperative Audit : Management of Forest (2007-2009)Second Cooperative Audit : Management of Mangrove in the Strait of

Malacca (2009-2011)

BackgroundFirst Technical Meeting at Kota Kinabalu, Sabah,

Malaysia on October 8, 2009We will develop report about how we conduct parallel audit (The Report).

The contents of the report including Audit Planning Memorandum (APM), Audit Methodology, Audit Approaches, Objectives, Audit Findings and Lesson Learned from conducting parallel audit.

The main issue : Mangrove Management in The Strait of MalaccaThe Second Technical Meeting in Jogyakarta

Indonesia (24-26 May 2010)The Planning MeetingThe output : Audit Objective, Audit Design Matrix, Audit Approach,

Audit Methodology, Audit tool and Audit procedures

The AuditWhy Strait of Malacca?

The Strait of Malacca is located between three countries, Indonesia, Malaysia and Singapore. From economic and strategic perspective, the Strait of Malacca is one of the most important shipping lanes in the world. The density of shipping in Malacca Strait has developed significantly and made it the second densest strait in the world after Dover Strait located between England and France.

The strait is the main shipping channel between the Indian Ocean and the Pacific Ocean. The heavy traffic makes it prone to pollution especially from oil spill. Pollution also comes from the island of Sumatra and Malacca Peninsula. The polluted water from the Strait of Malacca and other kind of water pollutions endanger the quality of the mangrove and its ecosystem.

Therefore, the Government needs to increase the effort to decrease the pollution in the straits of Malacca in order to improve the quality of the mangrove and its ecosystem along the coast lane of the straits of Malacca.

SAI of Indonesia and Malaysia conducted its Parallel Audit in order to persuade the Government to improve the quality of their management through our audit.

6

Strait Of M

alacca

Perlis

Kedah

Penang

Perak

Selangor

Negeri Sembilan

Melaka

Johor

The AuditForm of Cooperation :

Performance Audit A seperate audit team : 1) National audit report will be

submitted to each government and parliament. 2) Each SAI may adopt a different approach suited to its national needs , and,

Information exchange is the most important aspect of this form of coopretaion.

The Location :Mangrove forest area along the Strait of Malacca :

Indonesia : North Sumatera, Riau and Kepulauan Riau

Malaysia : Peninsular Malaysia of eight states consists of Perlis,

Kedah, Penang, Perak, Selangor, Negeri Sembilan, Malaka and Johor.

The AuditAudit Objective :

To assess whether the management of mangrove have been implemented efficiently and effectivelly in accordance with the relevant laws and regulations as welll as achieved its stated objectives with consideration to environmental impact.

The Output :Report about how we conduct parallel audit.

The content of the report including Audit Planning Memorandum (APM), Audit Methodology, Audit Approaches, Audit objectives, Audit Findings and Recommendation, and lesson learned from conducting parallel audit.

The AuditAudit Design Matrix

BPK RI and JAN Malaysia will refer the Guidance Material (Auditing Forests : Guidance for Supreme Audit Institutions) in designing each National Audit Plan Memorandum.

Criteria : The Approved Audit Design Matrix has had audit criteria but each SAI is allow to use additional criteria from their own law, regulation and other criteria

The AuditAudit Methodology

Examining the documents and records, Review, Sampling and Focus Group

Audit TechniqueObservation, Data Collection, Analyzing,

Interview, Questionaires and Site Visit.Audit Approach

Risk Based Audit and Expert Involvement (Professional Briefing)

Audit Tool :Geo Spatial Technology (GPS, GIS and Remote

Sensing) and other relevant technology.

The Impact of the Cooperation

Build the capacity of the auditor in auditing the forest.Training “how to use GIS and GPS as tool in

auditing the forest” for the auditor.

Exchange information and experienceAudit methodology, strategy, and findings

including the recommendation.Information about the condition of the forest of

each country, the management practice in the forestry sector etc.

The End