State Audit Bureau
KUWAIT

Independence

The State Audit Bureau of Kuwait is established under the constitution. The Head of SAI is appointed by Parliament and by Government. The procedure of terminating the appointment of head of SAI is by vote at the Parliament. Qualifications for appointment of the head of the SAI - the followed norm is to be a lawyer or an accountant. There is no fixed tenure or age limit.

The various conditions of service of the Head of the SAI to secure independence are:

Special procedure for appointment
Special procedure for removal
Immunity/protection from actions by others in its performance of duties
Independence to frame workplans

SAI Kuwait performs the audits assigned by the Executive or Legislature authorities. There is a financial independence. The National Assembly Chairman has the right to decide on the allocation. The SAI has much control over that process. The law secures the accountability of the SAI.

Jurisdiction

The SAI's jurisdiction extends to the followings:

Provincial and local governments
Bodies not owned but substantially funded by the governments
Banks whose capital forms part of the Federal, Provincial and local government and autonomous bodies substantially funded by the government.
Entities owned or controlled by the Federal, Provincial and local governments and other entities owned or controlled by such government owned or controlled entities.
State joint ventures with foreign agencies and other enterprises.
Audit of Receipt of the Government.
Concession granted by the Government to agencies for exploitation of public resources
Audit of Government investments made in other countries as minority share holder.

The SAI has jurisdiction over:

Public utility / Agencies providing public services even if they are privately funded and managed.
Regulatory bodies
Agencies to whom performance and delivery of public services is contracted out.

Powers

The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate - Law gives SAI the right to do so. The SAI has powers to enforce or initiate enforcement action to secure access to needed records which are not produced - Law gives SAI the right to do so. The SAI has the power to seal, seize and search documents and other related items where it is considered necessary for its audit and inspection. Further it has the power to seek testimonials of the persons concerned. This happens through the SAI pre-audit mission. The SAI has powers to instruct government investigating agencies to perform activities considered necessary.

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 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.

The SAI does not have the powers to access the computer systems of the auditees and download and use electronic data either in site or off site. The SAI does not have 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.

Audit Procedures and Functions

The SAI prescribes Financial, Compliance & Performance audit in its scope of audit. Law defines audit types and methods of practice. The SAI conducts Pre-audit and Special audit. Types of transactions and activities are:

a) Tenders before contracting
b) The National Assembly assignments to SAI.

Audit methodology/procedures followed for the following each main type of audit conducted by the SAI:

Audit of Revenue, Expenditure and Inventory
Audit of Personnel/Recruitment
Audit of Performance

The procedures in following up and enforcement of audit findings - To make sure that recommendations mentioned in the finding report are followed. The SAI does not discharge judicial functions. The SAI is required to follow specific standards, practices and guidelines in conducting audit and reporting. The SAI Kuwait may engage consultants and/or obtain professional services in conducting audit. The SAI can report on acts that infringe upon State economic interests like mass embezzlement of State assets, serious losses and wastes.

The SAI requires that all fraud or embezzlement be reported mandatorly by the auditees. Further Kuwait SAI has powers to follow up such cases. SAI has a role on the disposal or the action taken on audit findings. Further it present an interim report before rendering an annual report on the examination of the closing of accounts of Federal, Provincial and Local governments - for follow up and avoid comments. The SAI has an advisory role. The SAI of Kuwait is consulted regarding law projects before these laws are issued.

Organisation

The SAI is constituted as an audit office with monocratic status i.e. with an Auditor General or equivalent as head.

Administrative functions and miscellaneous

The SAI can expend resources budgeted independently - by the Ministry of Finance. The SAI has full independence in forming its workplan. The SAI establishing law gives the President that power. The SAI is subject to an independent audit. The SAI is required to submit a report on its activities to the Head of the State, National Assembly Chairman and the Cabinet.