Value And Benefits Of Sais Exposure Draft

ISSAI X

The International Standards of Supreme Audit Institutions, ISSAI, are issued by the International Organization of Supreme Audit Institutions, INTOSAI. For more information visit www.issai.org

EXPOSURE DRAFT

INTOSAI

ISSAI X: The Value and Benefits of Supreme Audit Institutions – making a difference to the lives of citizens

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INT O SA I Pr o f e s sio n a l S t an da r dsCo m mit t e e
PSCPSC-Secretariat Rigsrevisionen • Store Kongensgade 45 • P.O. Box 9009 • 1022 Copenhagen K • Denmark Tel.:+45 3392 8400 • Fax:+45 3311 0415 •E-mail: info@rigsrevisionen.dk

INTOSAI
EXPERIENTIA MUTUA
EXPERIENTIA MUTUA

OMNIBUS PRODEST

OMNIBUS PRODEST

INTOSAI General Secretariat - RECHNUNGSHOF (Austrian Court of Audit) DAMPFSCHIFFSTRASSE 2 A-1033 VIENNA AUSTRIA Tel.:++43 (1) 711 71 • Fax: ++43 (1) 718 09 69 E-MAIL: intosai@rechnungshof.gv.at; WORLD WIDE WEB: http://www.intosai.org

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TABLE OF CONTENTS Preamble.................................................................................................................... 4 Strengthening the accountability, integrity and transparency of government and public entities....................................................................................................................... 6 Demonstrating ongoing relevance to citizens and other stakeholders ....................... 8 Being model organisations through leading by example ............................................ 9 Annexure A.............................................................................................................. 12 Annexure B .............................................................................................................. 13 Annexure C .............................................................................................................. 14

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PREAMBLE
1. Public sector auditing, as championed by the Supreme Audit Institutions (SAIs), is an important factor in making adifference in the lives of citizens. The auditing of government and public entities by SAIs has a positive impact on trust in society because it focuses the minds of the custodians of the public purse on how well they use public resources as they know that they can be scrutinised. Such awareness supports desirable values and underpins accountability mechanisms, which in turn leads to better decisions.Once the outcomes of the audits have been released, citizens are empowered to hold the custodians of the public purse accountable. In this way SAIs promote the efficiency, accountability, effectiveness and transparency of public administration.1 An independent and effective SAI is therefore an essential component in a democratic system where accountability, good governance and integrity are anindispensable part of a stable democracy. 2. In a democracy, structures are created and elected representatives are empowered to implement the will of the people and act on their behalf through legislative and executive bodies. A risk factor to consider when constructing democratic institutions is that power and resources can be mismanaged or misused, leading to an erosion of trust that can underminethe essence of the democratic system. It is therefore critical that the citizens of a country are able to hold their representatives accountable. Democratically elected representatives can only be held accountable if they, in turn, can hold accountable those who implement their decisions. As set out in the Lima Declaration2 an important part of the accountability cycle is an independent and credibleSAI to scrutinise the stewardship and use of public resources. 3. Acting in the public interest places a further responsibility on SAIs to demonstrate their ongoing relevance to citizens and other stakeholders3. SAIs can show their relevance by appropriately responding to the challenges of citizens, the needs of different stakeholders, the emerging risks and changing environments in which...