The State Audit Office (SAI Finland) is established under the Constitution. The Head of the SAI is appointed by the Parliament for a 6 year and can be re-elected. The age limit is 65 years. The court decides on the dismissal of the Head of the SAI.
The Auditor General must have a higher university degree suitable for the post, a good understanding of the public economy and state administration, practically displayed management skills and leadership experience.
The various conditions of service of the Head of the SAI to secure independence of the SAI are:
Regarding the relationship of the SAI with other branches of the government, the Finland SAI is not subordinate or tied to administration. Parliament handles (chancellery commission) the office's budget proposal and decides on the SAI's budget in the state budget (separate section under Parliament's main division).
As regards the mechanism to secure accountability of the SAI, it is subject to external audit. The SAI also submits a report on its activities to Parliament each year by the end of September.
The SAI's jurisdiction extends to following:
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate. It has the right to obtain from authorities and other parties without delay documents, reports and other information necessary for the SAI to perform its prescribed task. Further, it has powers to enforce or initiate enforcement action to secure access to needed records, which are not produced. It has powers to take punitive action and/or impose surcharges. It may impose a conditional fine to back up the obligations stipulated above and to get accounts in the form required for auditing. Payment of a conditional fine may be ordered by the conditional fine board.
The SAI does not have power to seal, search and seize documents and other related items considered necessary for audit and inspection. It does not have the powers to seek testimonials of the persons concerned (appearances and answers) of the persons concerned or those who are deemed to have been involved in the matter subject to audit and inspection. As regards the powers to seek co-operation of persons other than agencies subject to audit and inspection, the SAI may use experts to assist in audits.
The SAI does not have powers of instructing government investigating agencies to perform activities considered necessary, but the SAI accomplishes such requirements by producing audit results to supervising bodies; who then can take necessary steps. The SAI can not decide on claims of interested persons in connection with official actions, duties and behaviour of persons subject to audit and inspection. This duty belongs to other government officials.
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. Provincial and local government accounts are not within the audit limit of the SAI.
The SAI has powers to access the computer systems of the auditees and to download and use electronic data either in site of off site. Further it can also review the development of computer systems of the auditees and suggest/enforce any controls. The SAI does not have any role in the appointment of other external auditors engaged by the auditees for meeting statutory requirements. Further if such external auditors are engaged, the SAI does not have powers to supervise and regulate their work.
The SAI prescribes Financial, Compliance, Performance & EDP Audits in its scope of Audit. The powers to perform these audits are mandated by the law governing the SAI. By the act on the State Audit Office; under the law, the task of the SAI shall be to ensure the legality and effectiveness of the state's financial management and compliance with the budget. The SAI conducts Pre-audit, Concurrent and Special audit; the performance audit starts with a pre-audit.
Regarding audit methodology/procedures followed:
The SAI does not discharge judicial functions.
The SAI is not required to follow any specific standards, practices and guidelines in conducting audit and reporting; it has set its own standards based on the auditing standards of the INTOSAI and the European Union.
The SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit e.g.
Regarding engaging consultants and/or obtain professional services in conducting audit, SAI may use experts to assist in audits.
The SAI can report on acts that infringe upon State economic interests like mass embezzlement of state assets, serious losses and wastes. The auditors must immediately report any abuse of funds or property which it manages or for which it is responsible to the SAI regardless of confidentiality regulations. Audited units and other experts are provided an opportunity to state their own opinion on the preliminary results of the audit. Audit reports are sent to the auditee and the appropriate ministry, other concerned parties, the Ministry of Finance and the Parliamentary State Auditors. Copies of each performance audit report and the collected financial audit report are also sent to the members of the parliament.
The SAI does not have any role on the disposal or the action taken on the audit findings. The SAI does not present an interim report before rendering an annual report on the examination of the closing of accounts of the Federal, Provincial and local governments. The Reports are shared with public and media mainly after the formal reporting. In case of Financial Statements audit, the SAI does not have the powers to amend accounts. The SAI does not have advisory role.
The SAI is constituted as an audit office with monocratic status. The SAI is empowered to engage external auditors/ agencies/ consultants as required.
The SAI can expend resources budged independently; SAI is responsible for its own payments and accounting and approves its own financial regulations. It has full independence in forming its workplan.
With the exception of the Auditor General, the SAI appoints officials, grants them leave, gives notice or discharges them, suspends them, cautions them or temporarily dismisses them. Officials are mainly subject to the Act on Parliamentary Officials. Officials are covered by the negotiating and cooperation procedures by Parliament.
The SAI is subject to an independent audit, and the scope of such audit is the accounting and financial statements. The SAI submits the annual report on its activities to the Parliament.