The Audit Office of the Republic of Maldives is established under a constitution. The Head of the SAI is appointed by Head of State. There is qualification prescribed for appointment of the head of SAI. There is no fixed tenure or age limit for the appointed head of SAI.
The various conditions of service of the Head of the SAI to secure independence are:
Audit office is under the President's office. It can send cases to courts through the Attorney General's office or to the Anti-corruption board and Police department for further investigations. Although there is no such mechanism to secure accountability of the SAI now the proposed Audit Bill contains a clause regarding this matter..
The SAI's jurisdiction extends to following and there are no limitations imposed on this jurisdiction.
But the SAI have jurisdiction over Public utility/Agencies providing public services even if they are privately funded and managed.
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate. Currently legal authority is granted by the constitution and also the proposed audit bill contains a clause rectifying this. The SAI has powers to enforce or initiate enforcement action to secure access to needed records which are not produced. It is required by the constitution to audit the accounts of state which implies the right of access. In case of difficulty final authority for access will be sought from the President's Office. The SAI can not search, seal and seize documents and other related items but where it is considered necessary such an authority could be sought from the President's Office.
It can not seek coopration of the persons other than the agencies subject to audit and inspection. The SAI does not have powers of instructing government investigating agencies to perform activities considered necessary but in cases it can refer the same to president. The SAI has the authority to dispense with, in whole or part, the audit of Federal, Provincial and local Governments accounts and other related matters. While SAI does its best to carry out yearly audits, it may prioritise or postpone audits accordingly to their risk factor. It does not have power to take punitive actions and or impose surcharges.
It has power to access the computer systems of the auditees and suggest controls and the power to download and use electronic data either in site or off site - implied by the constitution but it can not review the development of computer systems by the auditees. If external auditors are engaged, the SAI has powers to supervise and regulate their work.
The SAI prescribes Financial, Compliance, Performance & EDP Audit in its scope of Audit. The powers to perform these audits are mandated by the law governing the SAI. The constitution mainly requires an audit. SAI interpret this to mean an audit which may cover any of the above. The SAI conducts Special audit, whenever there is an instruction from the President's Office. Mainly system based audits with 5% sample for direct substantive testing depending on perceived risk. The SAI does not discharge judicial functions. For following up and enforcement of audit findings SAI sends Management letter to auditee copied to President's Office.
The SAI tries to achieve INTOSAI auditing standards in conducting audit and reporting. The SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit e.g.:
Consultants and professional services can be engaged by the SAI. Financial regulations requires that all fraud embezzlement are reported to the Audit Office. No specific power to oversee their disposal. After the audit Management letter is sent to the auditee and copied to the President's Office. SAI has no role on disposal or action taken on audit findings. The SAI can not share its audit findings with the media or general public.
In the case of Financial Statement audits SAI have the powers to amend accounts. Financial regulations state that inconsistencies found in the accounts must be remedied during the preparation of the next years accounts. The SAI have an advisory role but the Government is not required to consult the SAI before taking decision involving substantial consequences.
SAI is constituted as an audit office with monocratic status i.e. with an Auditor General or equivalent as head. The SAI is empowered to engage external auditors/agencies/consultants as required.
The SAIs budget is within the normal budget as any other Government office. Hence it is under the exchequer control. It has full independence in forming its workplan. The SAI recruits its audit and other staff in the same way as any other Government office. The SAI is not subjected to an independent audi. The SAI is required to submit a report on its activities to the President's Office.