The Auditor General (SAI Pakistan) is established under the Constitution. Auditor General is appointed by the Head of State. The Auditor General can be removed by the recommendations of the Supreme Judicial Council in the same manner as a judge of the Supreme or High Court. The Auditor General does not require any specific qualifications. There is a fixed tenure of 5 years or 65 years of age whichever is earlier.
The various conditions of service of the Head of the SAI to secure independence are:
The SAI is independent of all other agencies. The SAI is fully financially independent. The budget proposed by the SAI is allocated by the Ministry of Finance. The Auditor General has full control over the approved Budget. There is no mechanism to secure accountability of the SAI. However the Auditor General gets an assurance on this account through audit of the expenditure of this office from senior officers of the Military Accounts department or Railway Accounts Department.
The SAI's jurisdiction extends to following and there are no limitations imposed on this jurisdiction.
SAI also has Jurisdiction over fallowing if government owned
The SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate as per section 14 of the Auditor General's ( Functions, Powers and terms and condition of service) Ordinance, 2001. The SAI has powers to enforce or initiate enforcement action to secure access to needed records which are not produced as per section 14 of the Auditor General's ( Functions, Powers and terms and condition of service) Ordinance, 2001. The SAI does not have power to seal, search and seize documents and other related items considered necessary for audit and inspection. It has no power to seek testimonials of the persons concerned and it can not seek co-operation of persons other than agencies subject to audit and Inspection.
The SAI does not have 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 has 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 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 Law does not limit the definition of audit to any specific type of audit. The SAI conducts Special Audit. The SAI follows the international best practices in conduct of audits. The SAI does not discharge judicial functions. The audit findings are examined by the Public Accounts Committees of the Federal and Provincial Governments and the Executive departments are responsible for enforcement of directions of the Public Accounts Committee. SAI reports to the PAC on follow up actions. The SAI is required to follow specific standards, practices and 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 audit reports are submitted to the President/Governor of a Province who causes them to be laid before the National/ Provincial Governments. The SAI can share audit reports with public and media after formal reporting. It does not have powers to amend accounts in case of financial statements. SAI has got an advisory role.
The SAI is constituted as an audit office with monocratic status ie. with an auditor general or equivalent as head. The Regional audit offices are directly under the Auditor General. It is empowered to engage external auditors/agencies/consultants as required.
The SAI can expend resources budged independently as per section 19 of the Auditor General's ordinance, 2001, and it has full independence in forming its workplan. The staff in basic scale 1 to 15 is recruited by Auditor general and in BPS-16 and 17 by Federal Public Service Commission. Standard terms and conditions fixed by the government are followed by the SAI. The SAI is not subject to an independent audit. The SAI is not required to submit a report on its activities.