The Audit Directorate (SAI Bahrain) is established by Head of State. The Head of the SAI appointment has no fixed term, age and qualifications. The removal of Head of SAI is by the Head of State. The SAI is part of Executive body. It will be made part of the the parliament which is to be formed before the end of 2003. The SAI is not financially independent. The SAI suggests the required budget to Ministry of Finance and National Economy who gives the final approval.
The SAI's jurisdiction extends to following
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate. The SAI does not have powers to enforce or initiate enforcement action to secure access to needed records which are not produced. The SAI does not have power to seal, search and seize documents and other related items considered necessary for audit and inspection. Further, it does not have powers to seek testimonials of the persons concerned . The SAI is not empowered to seek co-operation of persons other than the agencies subject to audit and inspection.
The SAI has no powers to instruct government investigating agencies to perform activities considered necessary. Ministry of Finance &/or Concerned Ministry will be responsible for this. The SAI does not have powers to decide on claims of interested persons in connection with official actions, duties and behaviour of persons subject to audit and inspection. The SAI has no authority to dispense with, in whole or part, the audit of Federal, Provincial and local Governments accounts and other related matters.
The SAI does not have powers to take punitive action and/or impose surcharges. The SAI has the powers to access the computer systems of the auditees and download and use electronic data either in site or off site. The SAI has the powers to review the development of computer systems by the auditees and suggest controls. The SAI does not have any role in the appointment or supervision of the other external auditors engaged by auditees for meeting the statutory requirements.
The SAI prescribes Financial, Compliance, Performance and EDP Audits in its scope of Audit. The powers to perform these audits are mandated as per Budget law of 1975. The SAI conducts Pre Audit, Concurrent Audit and Special Audit. The Methdology/procedures followed for these audits are as per International Standards. The SAI does not discharges judicial functions. The procedures in following up and enforcement of audit findings are the same as the audit itself is handled.
The SAI is required to follow specific standards, practices and guidelines in conducting audit and reporting. The SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit depending on situation. The SAI can not engage consultants and/or obtain professional services in conducting audit. It reports on acts that infringe upon state economic interests like mass embezzlement of state assets etc. SAI does not requires that any fraud or embezzlement be reported mandatorly by the auditees. The SAI does not have powers to share its audit reports with public or media or to amend accounts in case of financial statements. The SAI has an advisory role.
The Director of Audit is Responsible for day to day functioning. The SAI is empowered to engage external auditors/ agencies/ consultants.
The SAI can expend resources budgeted independently and has full independence in forming its workplan. It has got full powers in recruitment of Audit and other Staff. The SAI is not subject to an independent audit. The SAI is required to submit a report on its activities to the H.H the Prime Minister.