The SAI is establishment under the constitution. Head of SAI is appointed by head of State. The procedure for terminating the appointment of the Head of the SAI is:
There are no qualifications or fixed tenure for appointment of the head of SAI. The head of SAI is appointed for a age limit of 60 years and can be extended to 65 years.
The various conditions of service of the head of SAI to secure independence are:
SAI has full independence (functionally, organically, financially) from executive. SAI is attached to Federal National Council (Legislature). The chairman of the Disciplinary Council of Financial Contraventions founded by SAI is presided by a judge selected by Judiciary. SAI President prepares the budget draft of SAI, with the agreement of the Speaker of the Federal National Council who forwards the draft to the Minister of Finance, who inserts the draft as it is forwarded to him by the Speaker in the State Budget. SAI President has all powers authorised to Minister of Finance regarding preparing estimates of SAI expenditures, and use of SAI appropriator allocated to SAI in the budget, without being subject to control of the Cabinet, Minister of Finance or the council of Civil Service. SAI is obliged to send a report about its activities to the legislature every year.
The SAI's jurisdiction extends to following
There are some limitations imposed on SAI's jurisdiction in this regard. The State should have a share no less than 25% in the capital of the auditee. SAI cannot audit provincial or local government unless a written request from the ruler of the Emirate (State).
SAI has powers of requisitioning all records of the auditee department/organisations to discharge its mandate. SAI is entitled to scrutinize any document, record papers and to request it when SAI deems necessary for its proper performance of audit. SAI has powers to enforce or initiate enforcement action to secure access to needed records, which are not produced. SAI Law considers "Not providing the SAI with the accounts and their supporting documents, any required papers or any other documents for and it purposes" as a financial contravention subject to responsibility rules mentioned in SAI Law. SAI can seal, search and seize documents and other related items where it is considered necessary for its audit and inspection. It has powers to seek testimonials of the person concerned (Article 27 of SAI Law). They do not have 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. SAI has powers of instructing government investigating agencies to perform activities considered necessary. SAI has no authority of re-examining its own adjudication. It cannot decide on claims of interested persons in connection with official actions, duties and behaviours of person subject to audit and inspection. SAI can look at it as a more information only without taking any decision. 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. SAI investigates financial contraventions and the SAI President adopt one of the following decision regarding it:
a. To set processes if the act has not constituted a
financial contravention or if it proved not committed by official.
b. To demand from concerned administration to inflict
disciplinary penalty deemed by SAI on the isolator if inflicting it is within
its jurisdiction.
c. To submit a case before the disciplinary council
stipulated in SAI Law to settle it according to Law.
SAI has powers to access the computer systems of the auditees and the power to download and use electronic data either in site o off site. The SAI also has power to review the development of computer systems by auditees and suggest/enforce any controls. SAI has no role in the appointment of other external auditors engaged by the auditeed for meeting any statutory requirements. If such external auditors are engaged, SAI has powers to supervise and regulate their work. SAI can examine the report presented by external auditors through its auditing.
The SAI prescribes Financial Compliance and Performance Audits in its scope of Audit. The powers to perform these audits are mandated by the law governing the SAI (Article 1,7,10,11 of SAI Law as well as regulation issued according to Law). The SAI conducts Pre-audit and Concurrent audit:
1) Auditor : It is auditing according to audit program and sends a report to
the controller.
2) Controller : It studies the report of the auditor and submits its views.
3) Director : It studies the report and sends it to controller with its views
which are final.
4) A preliminary report is sent to the auditor which should reply with in
30 days.
5) SAI will study the report and send its comments till the demands are
implemented.
If the Auditee does not respond/ willfully delays against the SAI findings these are considered financial violations and rules of these violations are applied upon. 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 can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit eg. exchange of views with UNO experts in performance auditing and with Canadian SAI in computer matters.
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 SAI requires that any fraud or embezzlement be reported mandatorly by the auditees. The SAI presents an interim report on the matters of great importance to the Legislature, President, Cabinet and Federal Supreme Council. It has an active role on disposal or action taken on its findings. The SAI has no powers to share its audit reports with public or media. It has powers to amend accounts in case of financial statements audit. The SAI has no advisory role to the Government.
The SAI is constituted as an audit office with monocratic status ie. with an auditor general or equivalent as head. It is empowered to engage external auditors/agencies/consultants as required.
The SAI can expend resources independently. SAI President prepares the budget draft of SAI, with the agreement of the Speaker of the Federal National Council who forwards the draft to the Minister of Finance, who inserts the draft as it is forwarded to him by the Speaker in the State Budget. SAI President has all powers authorized to Minister of Finance regarding preparing estimates of SAI expenditures, and use of SAI appropriator allocated to SAI in the budget, without being subject to control of the Cabinet, Minister of Finance or the council of Civil Service It has full independence in forming its workplan. SAI has special cadre for its staff and has special personnel affairs committee with same jurisdiction as Public Service Council in the state. The SAI is subject to an independent Financial audit. Its accounts are audited by the authorized department of auditing government accounts in SAI. The SAI is required to submit a report on its activities to the Federal National Council. The report is also sent to the President of the state, cabinet as well as Federal supreme council.