NCJ Number
67473
Journal
GAO Review Volume: 15 Issue: 1 Dated: (WINTER 1980) Pages: 14-17
Date Published
1980
Length
4 pages
Annotation
THE DIVERGENT PRACTICES AND FUNCTIONS OF SUPREME AUDIT INSTITUTIONS (SAI'S) SERVING THE GOVERNMENTS OF DIFFERENT COUNTRIES ARE DISCUSSED FROM A SOCIOCULTURAL AND A MANAGEMENT AND ACCOUNTABILITY PERSPECTIVE.
Abstract
IN THE INTERESTS OF FOSTERING THE GROWTH OF AN INTERNATIONAL AUDIT COMMUNITY TO FACILITATE COOPERATION AND UNDERSTANDING AMONG GOVERNMENTS, THE ADOPTION OF SOME FORM OF UNIFORM GOVERNMENT ACCOUNTING AND AUDITING STANDARDS IS URGED. SAI'S MUST RECOGNIZE THAT WHILE THEIR NATIONS' ACCOUNTING AND AUDITING PRACTICES ARE ADAPTED TO THE SPECIALIZED NEEDS OF THEIR PARTICULAR ECONOMIC, CULTURAL, AND POLITICAL SYSTEMS, EACH CAN BENEFIT FROM THE MUTUAL EXCHANGE OF EXPERIENCES, JOINT TRAINING ACTIVITIES, AND AGREEMENT ON GOALS AND STANDARDS. SAI FUNCTIONS CURRENTLY IN PRACTICE, MANDATED EITHER BY THE LEGISLATURE OR THE EXECUTIVE, RANGE FROM EXPENDITURE PREAUDITS, VOUCHER AUDITS, AND ADJUDICATION OF PUBLIC OFFICIALS' FINANCIAL ACCOUNTS TO THE MORE RECENT EXTERNAL FINANCIAL AUDITS, ECONOMY AND EFFICIENCY REVIEWS, AND PROGRAM EVALUATION. MOST SAI'S EMPLOY A MIX OF THESE TECHNIQUES; FEW EMPLOY ALL OF THEM, AND MANY ARE LIMITED TO THE FIRST THREE TYPES. REVIEWS OF INTERNAL CONTROLS, ECONOMY AND EFFICIENCY, AND PROGRAM EVALUATION ARE PRACTICED BY SAI'S IN A FEW DEVELOPED COUNTRIES SUCH AS THE U.S., CANADA, THE UNITED KINGDOM, AUSTRALIA, AND THE SCANDINAVIAN COUNTRIES. DIFFERENCES ARE HAVE ECONOMIC, POLITICAL, AND CULTURAL ORIGINS. LESS SOPHISTICATED AUDITING APPROACHES MAY STEM FROM THE ABSENCE OF CLEARLY DELINEATED SEPARATION OF POWERS IN THE GOVERNMENT OR SIMPLY TO AN AGRICULTURALLY BASED ECONOMY WITH LESS COMPLEX ECONOMIC REPORTING NEEDS. SYSTEMS GOING BACK TO COLONIAL ADMINISTRATIONS FOLLOW THE CONTINENTAL EUROPEAN MODEL, ORIENTED TO THE LEGALITY OF INDIVIDUAL TRANSACTIONS WITHOUT AN INTEGRATED SYSTEM OF ACCOUNTS AND REPORTS. INDEPENDENCE OF THE AUDIT ORGANIZATION IS VITAL BUT FREQUENTLY LACKING IN COUNTRIES WHERE THE AUDITOR GENERAL'S APPOINTMENT IS POLITICALLY DETERMINED. MOREOVER, LEGISLATURES TEND TO ASSIGN SAI'S TO PETTY, TIME-CONSUMING AUDIT TASKS THAT CONTRIBUTE LITTLE TO SOUND FINANCIAL MANAGEMENT POLICIES. IN THE PAST 25 YEARS, THE FINANCIAL ACCOUNTABILITY FIELD HAS DEVELOPED TECHNIQUES AND METHODOLOGIES ADVANTAGEOUS TO COUNTRIES AT ALL STAGES OF INDUSTRIAL DEVELOPMENT. EDUCATIONAL OPPORTUNITIES EXIST IN CERTIFIED PUBLIC ACCOUNTING, WITH FULL PROFESSIONAL RECOGNITION, GOVERNMENT AUDITING WAS STANDARDIZED BY THE GENERAL ACCOUNTING OFFICE OF THE U.S., AND ORGANIZATIONS EXIST INTERNATIONALLY FOR FOSTERING THE DEVELOPMENT AND DISSEMINATION OF MUTUALLY ACCEPTABLE AUDITING STANDARDS AMONG THE COUNTRIES OF THE WORLD. FOOTNOTES ARE PROVIDED. (MRK)