The SAI is established under a constitution. SAIs head is appointed by Parliament and by Election. The head of SAI, can not be dismissed from office for the reasons other than those mentioned in the Law specific to the Turkish Court of Accounts, which is in general, behaviour not compatible with the honour and dignity of his office. The first step of prosecution takes place on a committee within the TCA. The Committee prepares a reports and submits it to another in-house unit entitled Board of Chambers, which decides whether the accused should be tried at Constitutional Court. Section 4 of TCA Law requires that the candidate for head of SAI must be a graduate of a four-year higher education institution (University) have previously served as a/an:
The Head of SAI is appointment for a fixed 7 years tenure And/or upto a prescribed age limit of 65 years. The various conditions of service of the Head of SAI to secure independence are:
The SAI is completely independent of other branches of Government in the conduct of its duties. The TCA prepares its own budget that it submits to the legislature without the intervention of the Ministry of Finance. The President is the sole authority to authorize expenditures from the TCA's budget.
The SAI's jurisdiction extend to the followings:
Auditors through TCA Presidency have powers of requisitioning all records of the auditee departments/organisations to discharge its mandat. SAI (Presdential Office) has powers to enforce or initiate enforcement action to secure access to needed records. It also has powers to seal documents and other related items where it is considered necessary for its audit and inspection. SAI has no powers to search and seize document and other related items where it is considered necessary for its audit and inspection. SAI has powers to seek testimonials (appearances and answers) of the persons concerned under sections 29 and 49 of the TCA Law. In carrying out its mandate prescribed by this Law and others, TCA is empowered to communicate directly with ministries, boards, institutions, administrative heads, accountants and other responsible officials; to access to the documents, ledgers and records needed for examination by dispatching its staff or having them brought over to any location it deems appropriate; to summon officials of all categories and levels to obtain information; and to call in representatives from ministries, government offices and institutions.
SAI has powers to seek co-operation of persons other than the agencies subject to audit and inspection for presenting materials or provide testimonials necessary for its audit and inspection. It has powers of instructing government investigating agencies to perform activities considered necessary. SAI also has authority of re-examining its own adjudication. Decisions of the TCA chambers, which are account courts, may be appealed against at the Board of Appeal and the "Board of chambers" within the TCA. SAI can decide on claims of interested persons in connection with official actions, duties and behaviors of person subject to audit and inspection. SAI has no the authority to dispense with, in whole or part, the audit of Federal, Provincial and local Governments accounts and other related matters.
SAI has powers to take punitive action and/or impose surcharges. Accountants who fail to submit their accounts by the time assigned in the law and officials who fail to furnish any required information or to submit required documents in the course of audit or trial are punished by salary cut by the relevant agency on the request of TCA. SAI has powers to access the computer systems of the auditees and the power to download and use electronic data either in site or off site. SAI has no powers to review the development of computer system by auditees and suggest/enforce any controls. It also has no role in the appointment of other external auditors engaged by the auditees for meeting any statutory requirements. SAI has no powers to supervise and regulate their work.
The SAI is prescribed Financial audit, Compliance audit and Performance audit in its scope of audit. Section1 of the TCA Law states that it is charged with auditing on behalf of Parliament revenues, expenditures and property of government office financed by general and annexed budgets and the section annex 10 of the same provides that the TCA is authorized to carry out examinations into the extent to which institutions and establishments come under its jurisdiction have used their resources economically, effectively and efficiently.
SAI conduct Pre-audit of -:
The audit methodology/procedures followed for each main type of audit conducted by SAI are:
SAI can discharge judicial functions. Account are assigned to auditors by the President to be examined and reported. Completing the examination, the auditor writes a letter of inquiry to the responsible officials for their defense on the matters she/he thinks that are not compliance with laws and regulations or rules. Upon receiving their defense statements the auditor prepares a report including her/his opinion and the statements. The report is sent to the assigned chamber to be tried. The chamber upon trial decides whether the responsible officials to be acquitted or held liable for the amount spent unlawfully.
The audit court is assisted by auditors who conduct field works. Trial takes place on the auditor's report. Summoning witness is not a usual practice. Expenditures that are decided to be unlawful, with their interest, are collected from the responsible officials in accordance with the provisions of the "Execution and Bankruptcy Law". Section 65 of TCA Law states that in the event of encountering an action of guilt in the course of a pre or post audit, the auditor should immediately gather all the evidence and convey it to the President of TCA. If the chamber assigned by the President to look into the matter decides that the incidence to be prosecuted as a public case, the related documents or related part of the account is handed over to office to which responsible official is attached or the office of prosecutor for necessary action. Decisions given by the general courts shall be without prejudice to the TCA's audit and trial of accounts and transactions.
Amounts decided by TCA to be paid back to Treasury by responsible officials due to non-compliance to the law are to be paid within 3 months from the date they are notified, The official highest in standing of the office which the writ (TCA decision) is sent is responsible for follow up of enforcement.
The TCA isnew in VFM auditing and has only completed two examinations. Therefore whether performance audit reports should be dealt by judicial chambers or by the President only has not been decided yet.
SAI is required to follow any specific standards, practices and guidelines in conducting audit and reporting. SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit (i.e. NAO, GAO SAI of Pakistan, INTOSAI, ASOSAI and EUROSAI). SAI can engage consultants.
SAI can report on acts that infringe upon State economic interests like mass embezzlement of State assets, serious losses and wastes being restricted to the institutions subject to its audit. SAI does not require that any fraud or embezzlement be reported mandatorly by auditees. SAI does not present an interim report before rendering an annual report on the examination of the closing of accounts of Federal, Provincial and Local governments. SAI has powers to share its audit reports with the public and media after reporting process. In the case of Financial Statement audits SAI has no the powers to amend accounts. SAI has an advisory role. SAI is the Government required to consult SAI before taking decision invloving substantial consequences. The regulations on financial matters issued by the ministries and other administrations that fall within the Jurisdiction of TCA go into effect after having obtained Court of Accounts advisory opinion.
SAI is constituted as an Court/Tribunal Audit/Accounts/Collegiate. The SAI is a Court of account /Audit. The President of TCA is elected by Parliament for a 7-years term and may be eligible for reelection. Members of the Court are also elected by the Turkish Grand National Assembly (Parliament). The president and the members of TCA have tenure until the age of 65. Auditors are recruited and appointed by the President of TCA and have permanent tenure like members of the Court. The remuneration and conditions of employment of the professional personnel (the president members and auditors) are more favourable than those of other members of the public service. SAI is empowered resources budgeted independently or is there exchequer control of any external kind.
SAI can expend resources budgeted independently . SAI has full independence in forming its workplan. Having passed a competitive examination, the candidates for the auditorship appointed by the President of TCA as candidate assistant auditors. Following the appointment they are required to attend a two year vocational training course and take a proficiency examination upon the completion of the mentioned course. The president appoints the other staff as well but their appointment, remuneration and other rights are subject to and regulated by the Law of State Employees while those of auditors are governed by the TCA Law. SAI is not subject to an independent audit. SAI is required to submit a report on its activities to Parliament.