The SAI Chile is established under the constitution. Head of the SAI is appointed by Parliament and Government. The Head of the SAI can be terminated by impeachment in the parliament or age limit of 75 years. The Head of SAI must be a lawyer. The Head of SAI is not appointed for a fixed tenure but an age limit of 75 years.
The various conditions of service of the Head of the SAI to secure independence are:
SAI is independent of other branches of the government. It has relationship with the government through ministry of finance. No, SAI is not financially independent. The budget is approved by ministry of finance and the Parliament.
The SAI's jurisdiction extends to following:
SAI does not have jurisdiction on central bank and state bank. SAI also has Jurisdiction over following
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate as per the special law on SAI. The SAI has powers to enforce or initiate enforcement action to secure access to needed records which are not produced the special law on SAI. The SAI does not have power to seal but can search and seize documents and other related items considered necessary for audit and inspection. Further, it has power to seek testimonials of the persons concerned in the matter of audit and inspection. It can seek co-operation of persons other than agencies subject to audit and inspection as SAI law has established that no body could deny to cooperate with the SAI.
The SAI does not have powers to instruct government investigating agencies to perform activities considered necessary. The SAI has 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 does not have the 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. When the trial is finished ,the SAI recommends to the government authority the sanctions. The SAI neither has the powers to access the computer systems of the auditees and download and use electronic data either in site or off site nor the powers to review the development of computer systems by the auditees and suggest controls. The SAI has no role in the appointment and 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 by the special law on the SAI and the auditor law (state basic law for civil management). The SAI conducts Pre audit, Concurrent and Special audit. The SAI conducts pre audit in advance, which is a legal opinion about the legality of decrees and resolutions of the government authorities. The procedure followed by each type of main audit is
The SAI discharges judicial functions. Financial and legal audit if the auditors find an irregular situation they prepare report to be presented to the court of account. Audit court is not assisted by the auditors who conduct field work. Procedure being followed by the audit court is as under
Conduct of Performance audit: The special court has a special procedure to manage the "Reparos".
The findings of the audit court are presented to the Parliament. The SAI is required to follow INTOSAI 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. The SAI can engage consultants and/or obtain professional services in conducting audit. The SAI reports on the acts that infringe upon State economic interests like mass embezzlements of state assets etc. The SAI requires that any fraud or embezzlement be reported by the auditees mandatorly. The findings and recommendations are reported to the civil authorities and government in relation with their importance. In some cases findings are reported to the Parliament or President directly. The SAI presents the interim report. It has powers to amend accounts of financial statement audits. It has an advisory role to the government.
The SAI is constituted as an audit office with monocratic status ie. with an auditor general or equivalent as head. The Comptroller General is responsible for day to day functioning of the SAI.
The SAI can expend resources budgeted independently. The SAI has full independence in forming its workplan.. The SAI is not subject to an independent audit. The SAI is not required to submit a report on its activities