The Law on Audit of the Kingdom of Cambodia was passed by the National Assembly on the 12th of January 2000 at its third plenary session of the second legislature and approved by the Senate on all of its forms and legal concepts on the 21st of January 2000 at its second plenary session of the first legislature and was declared to be conformed with the Constitution by the Constitutional Council, except the article 40.
The National Audit Authority is established on a legal base as the supreme audit institution of the Confederation bound only by the constitution and the law. The purpose of the Audit Law is to establish a National Audit Authority, which is independent in its operations. The National Audit Authority is responsible for executing the external audit function of the Royal Government. The Auditor-General is empowered to conduct audits on accounting records, accounts, management systems, operation controls and programs of government institutions in accordance with generally accepted auditing standards and Royal Government auditing standards. This Law also established the internal audit function in government ministries, institutions and public enterprises.
The
Auditor-General and the Deputy Auditor-Generals is appointed by royal decree on
the recommendation of the Royal Government and approved by a two-third (2/3)
majority of all members of the National Assembly. The Auditor-General and the
Deputy Auditor-Generals are appointed for a term of five (5) years and may be
reappointed for another five (5) year term only upon the completion of the first
term.
The Auditor-General shall have rank and privileges equivalent to a Senior Minister and the Deputy Auditor-General shall have rank and privileges equivalent to a Minister.
The government institutions in the provisions of this Law shall include ministries, institutions, agencies, authorities, national bank, state financial institutions, state and private sector joint venture financial institutions, public enterprises, public establishments, municipal, provincial and local government offices, contractors, suppliers of goods and services to the Royal Government under contracts, and other organizations receiving financial assistance from the Royal Government in addition to their own equity and credits such as tax and duty exemptions and other concessions to non-profit organizations and private investment enterprises.
In this Law,
external audit includes the implementation of the following types of audits:
(a)
Audit on Financial statements
(b)
Audit on the management of credit project financed by external sources
(c)
Audit on management systems and operations of all institutions
(d)
Audit on evaluation, efficiency and effectiveness of operations
(e) Audit on non-profit organizations, associations, political parties and private investment enterprises as stated in article 2 of this Law
The
Royal Government submits the yearly statements of the budget settlements to the
National Assembly and Senate for debate and vote. At the same time, the Royal
Government also submits these statements to the National Audit Authority for
auditing. The National
Audit Authority certifies these statements and issues the audit reports to the
National Assembly and the Senate. The Auditor-General issues report to the
National Assembly, the Senate, the Council of Ministers, Ministry of Economy and
Finance and relevant ministries with regard to the irregularities in the
accounting records, monetary and asset management within any entity
After preparing a performance audit report of any institution, the Auditor-General sends a copy of this proposed report to the head of this institution. If the head of the institution gives the written comments to the Auditor-General within twenty-eight (28) days after receiving the proposed report, the Auditor-General considers those comments before preparing a final report. Otherwise, if the head of the institution has not replied within the time period specified above, the proposed report shall be considered valid.
The Auditor-General
may require by written notice to the head or representative of the relevant
institution to:
provide the Auditor-General or authorized official with necessary information,
cooperate and provide any evidence to the Auditor-General or an authorized
official
The
Auditor-General may direct
whether the information is to be provided verbally or in writing and be
certified that is legally accurate.
The
Auditor-General or the authorized official:
(a)
May during working hours enter and remain on the auditee’s premises
(b)
Is
entitled to fully and freely access to documents, reports or properties
belonging to government ministries/institutions
(c)
May examine, make copies or extract documents from any report.
Regardless of other possible penalties, any person who violates the article 31
or 33 of The Audit Law shall be liable to a fine from 1,000,000 (one million)
Riels to 5,000,000 (five million) Riels or be imprisoned for a term from 1 (one)
to 3 (three) months or be liable to both fine and imprisonment.
To
perform its mission and implement this Law, the National Audit Authority is
empowered to issue decisions, regulations, circulars, and other instructions.
An internal audit shall be established within each institution, ministry and
public enterprise. The internal audit shall report to the head of each
institution, ministry and public enterprise and shall submit its report and
conclusion to the National Audit Authority. The procedures for the organizing
and functioning of the internal audit shall be determined by sub-decree.
The function of internal audit is to independently examine and evaluate the
effectiveness on the implementation of the internal control system within
institutions, ministries and public enterprises.
An internal control system is the means of the Royal Government established by
the management of the institutions, ministries and public enterprises in order
to provide reasonable assurances which regard to the following:
(a) Effectiveness of operations
(b) Reliability of financial reports
(c)
Compliance with the applicable laws, regulations, policies, procedures and
implementation arrangements.
The National Audit Authority is an independent public entity and shall report
directly to the National Assembly, Senate and the Royal Government for
information purpose. The National Audit Authority shall be led by one
Auditor-General and have two Deputy Auditor-Generals.
The Auditor-General has the responsibilities to lead the National Audit
Authority, be in charge of the implementation of policies, goals and objectives
of the National Audit Authority and have authority to act in all matters
stipulated in this Law.
The National Audit Authority has its own separate budget provided by the
national budget.
The revenues and expenditures of the National Audit Authority shall be governed
by the financial system law.