The SAI is established under the constitution. SAI's head is appointed by Head of State. In terms of section 105(3) of the Constitution of Zimbabwe, a person shall not be qualified to hold or act in the office of Comptroller and Auditor-General unless he has held the post of Secretary of, or Deputy Secretary or Under Secretary in, a Ministry or a post in the Public Service of a grade equivalent to or higher than that of Under Secretary for periods which in the aggregate amount to at least five years. The Head of SAI is appointed for a fixed tenure. A Period of tenure is not specified in the Constitution or an act of Parliament. It has been the practice to fix this period to three years in the conditions of appointment of the Comptroller and Auditor-General. This period is renewable at the discretion of the Head of State/Government. There is no prescribed age limit for the head of SAI. The Head of SAI can be terminated
The various conditions of service of the head of SAI to secure independence are:
The relation ship with various branches of the government are
Executive-: The SAI submits a copy of its annual report to the Minister responsible for finance for tabling in Parliament. The Minister responsible for finance also administers acts of Parliament relating to the Office of the Comptroller and Auditor-General.
Legislature-: The SAI's reports are tabled in Parliament. The legislature has power to direct the Comptroller and Auditor-General in the exercise of his duties.
Judicial-: The SAI has no direct relationship with the judiciary
Investigating agencies-: The SAI can bring to the attention of investigating agencies any acts of omission or commission, which the SAI believes warrants prosecution of the prepetrators of those acts.
The SAI does not have financial independence. The treasury has the right to decide what allocation the SAI should get before the allocation is debated in Parliament. Parliament has the final approval of the allocation before money can be spent. The SAI has the power, like any other Government ministry, to negotiate its bid with the Treasury. The SAI has also the ability to spend what has been allocated to it in accordance with Treasury and legislative authorities. The SAI is accountable to Parliament on the use of its resources as accounting officer, just like any other Government ministry. The SAI is also accountable to Parliament on results of his audits. The SAI works closely with the Committee of Public Accounts.
The SAIs jurisdiction extend to the following-:
The SAI's jurisdiction is limited to the audit of State/Central Government, designated public enterprises and companies or other entities in which the State has a controlling interest. It does not extent to local authorities or any institution falling directly under local authorities. It is not allowed to audit such documents as are subject to determination by the Commissioner of Taxes of any amount upon which any tax leviable under the Income Tax Act [Chapter 23:06] is chargeable.
The SAI does not audit accounts of a private nature which include Government Schools General Purpose Funds, Teachers College amenities funds, uniformed forces mess funds, regimental institute funds, welfare funds, grants accounts, recreational funds and club funds.
The SAI is not entitled to question the merits or the terms of the policies of any Government ministry or designated public enterprises or companies.
SAI has jurisdiction over: Regulatory bodies (e.g, Privatisation, Environment, Pollution Control, telecom etc.)
SAI has powers of requisitioning all records of the auditee departments/organisations to discharge its mandate under Section 106(3), 106(6) of the Constitution. SAI has powers to enforce or initiate enforcement action to secure access to needed records under Section 8(2) of the Audit and Exchequer Act [Chapter 22:03]. SAI has powers to seal, search and seize documents and other related items where it is considered necessary for its audit and inspection. SAI has powers to seek testimonials of the persons concerned under Section 9 of the Audit and Exchequer Act [Chapter 22:03]. 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 under Section 9 of the Audit and Exchequer Act {Chapter 22:03].
SAI has no powers of instructing government investigating agencies to perform activities considered necessary. As outlined in Section 8(2) of the Audit and Exchequer Act [Chapter 22:03] the SAI brings the matter to the notice of the investigating agency concerned. The SAI expects the agency concerned to start investigations within a reasonable period. The SAI follows up the matter in writing with the investigating agency. If the agency does not take steps to investigate the issue in terms of the law under which the agency falls, the SAI can then bring this matter to the notice of higher authorities or Parliament.
SAI has the powers to decide on claims of interested persons in connection with official actions, duties and behaviours of persons subject to audit and inspection. SAI has the authority to dispense with, in whole or part, the audit of Federal, Provincial and local Governments accounts and other related matters in terms of section 106(1) of the Constitution. SAI has power to take punitive action and/or impose surcharges. The SAI's power to impose surcharges is limited to losses, deficiencies and improper payment under the circumstances. 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. It also has role in the appointment of other external auditors engaged by the auditees for meeting any statutory requirements. If such external auditors are engaged, SAI has powers to supervise and regulate their work.
The SAI prescribes Financial, Compliance, Performance & EDP audit in its scope of audit. The power to perform these audits are mandated by the law governing the SAI under the terms of subsections (1) and (2) of the Constitution and Section 7(1) of the Audit and Exchequer Act [Chapter 22:03]. SAI conducts Concurrent audit and Special audit. Concurrent audits are carried out on developing systems and Special audits relate largely to investigative or forensic type of audits.
Each main type of audit (i.e. financial/attest audit, EDP audit and performance audit) follow more or less the same procedures. Each audit starts with the planning phase which includes preparation and approval of operational/working/certification plans, preliminary assessment of control risk, understanding the client internal control structure or business, walk through tests, final assessment of business risks/control risks and the preparation of audit programmes or final detailed procedures work plans. Compliance tests will be carried out during the assessment of control risk. Any rules, laws, standards or recognised best practices applied during business operations or financial management will be reviewed by the SAI during this stage.
The application of substantive audit procedures on details of transactions and account balances or gathering of sufficient relevant audit evidence to support the auditor's opinion. Such procedures include analytical review procedures. Management letters/reports are complied and auditee's comments are sought. Follow up on issues raised in management letters/reports is carried out after a reasonable period has elapsed. In financial audits, this is done during the next audit when the "record of control weakness" (RCW) is being completed during the whole audit process. In performance audits, the follow-up is done when it is anticipated that by then the recommendations would have been implemented. SAI does not discharge judicial functions.
Follow up on issues raised in management letters/reports is carried out after a reasonable period has elapsed. In financial audits, this is done during the next audit when the "record of control weakness" (RCW) is being completed during the whole audit process. In performance audits, the follow-up is done when it is anticipated that by then the recommendations would have been implemented.
Material misstatements in financial statements or significant findings are introduced into the accounts as qualifications. The SAI prepares question for this Committee and the Committee uses these questions to ask accounting officers of the affected ministries. The Committee's report will contain strong recommendations for action by the Government. The Committee's report is discussed in Parliament. On acceptance executive is expected to act on those recommendations. In some cases, Parliament can impose sanctions/penalties on accounting officers who act in contempt of Parliament by not taking Parliament's recommendations seriously.
The SAI has adopted INTOSAI auditing standards as its own standards with/without modifications. SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit e.g-:
The SAI has been collaborating with INTOSAI, SAI of Canada, SAI GAO of USA, SAI RRV of Sweden, Southern African Development Community Organisation of Supreme Audit Institutions, Assembly of English-Speaking African Supreme Audit Institutions, etc.
SAI can engage consultants and/or obtain professional services in conducting audits under the Section 9(1)(b) of the Audit and Exchequer Act [Chapter 22:03]. SAI can report on acts that infringe upon State economic interests like mass embezzlement of State assets, serious losses and wastes. SAI requires that all fraud embezzlement must be reported by the auditees. SAI has powers to oversee the ultimate disposal of such cases.
The SAI writes a management letter/draft report to head of the auditee inviting comments to the findings/recommendations raised. The auditee is expected to respond to the recommendations and state what action that auditee will take to correct the anomalies raised. The SAI also expects that findings/recommendations raised in previously years would have been taken seriously by the auditee and corrected. Serious/material matters are brought to the attention of the Committee of Public Accounts through a memorandum after the SAI 's findings/recommendations have been tabled in Parliament. SAI has no role on the disposal or the action taken on audit findings. The SAI carries out interim audits on final accounts of large auditees and present interim audit management letters/reports to heads of auditees. However, the SAI has not yet presented an interim report to Parliament. It has powers to share its audit reports with the public and media. This is normally done on the day the report is tabled in Parliament. In the case of Financial Statement audits, SAI has no powers to amend accounts. SAI has an advisory role. The decision to implement still rests with the management of the auditee. There are no rules which require the auditee to consult the SAI before implementing recommendations. Usually during the audits, the auditor would have agreed on the finding and auditor's recommendations.
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.
SAI can not expend resources budgeted independently. The provisions which apply to an accounting officer of any Government ministry also apply to the head of the SAI as accounting officer of the Audit office VOTE in terms of section 18 of the Audit and Exchequer Act [Chapter 22:03]. It has full independence in forming its workplan. Section 106(6) of the Constitution guarantees this independence. SAI appoints the staff on conditions of service determined by the Public Service Commission. SAI is not subjected to an independent audit. SAI is not required to submit a report on its activities.