The Board of Audit and Inspection of the Republic of Korea

Contents History and Organization Ⅰ Ⅰ International Cooperation Ⅲ Ⅲ Reform of the National Audit System Reform of the National Audit System Ⅳ Ⅳ Audit Activities II

History and Organization History and Organization

in 1963 History of the Board of Audit and Inspection The Board of Audit The Commission of Inspection - 4 -

Legal Status Article 97 of the Constitution - 5 -

AuditInspection Improve Public Services Examination of the works of government agencies and the duties of their employees Responsibilities Audit of the accounts of the State, provincial governments and government-invested organizations Settlement of the accounts of the State Report its findings to the President and the National Assembly - 6 -

Organization Chart Chairman Council of Commissioners Secretary General (SG) Secretary General (SG) 1 st Deputy SG 1 st Deputy SG 2 nd Deputy SG 2 nd Deputy SG Deputy SG for Inspection of Public Service Deputy SG for Planning & Mgt. Audit & Inspection Training Institute Audit & Inspection Research Institute 2 Bureaus & 2 Groups (12 Divisions) Organization 4 Bureaus & 1 Group (20 Divisions) 3 Bureaus & 3 Group (22 Divisions) 4 Divisions

Highest Decision-Making Body Council of Commissioners - 8 -

Secretariat Audit/Inspection Operations Bureaus  Financial Management and Economy Audit Bureau  Financial Markets and Funds Audit Bureau  Construction and Environmental Audit Bureau  Public Institutions Audit Bureau  Social Welfare Audit Bureau  Government Administration and Cultural Audit Bureau  Provincial and Local Governments Audit Bureau  Special Investigations Bureau  Audit Requests Investigation Bureau  Strategic Programs Audit Group  Education Audit Group  National Defense Audit Group  Provincial Construction Audit Group  Inspection Information Group  Public Internal Audit Support Group

Secretariat Supporting Offices  Planning and Management Office - Planning & Management, Evaluation & Statistics, Performance Management & Institutional Improvement, and International Cooperation  Office of the Inspector General  Legal Affairs, Claims Review and Reexamination Office  Public Information Office  Audit Quality Management Office  Administration Support Office

BAI’s Training and Research Institutes Audit and Inspection Training Institute Audit and Inspection Training Institute Audit and Inspection Research Institute Audit and Inspection Research Institute

Doctoral Degree Holders Doctoral Degree Holders 44 Lawyers 35 CPAs 68 Professional Engineers Professional Engineers 16 Total 1,074 Personnel 6 6 Tax Accountants Professionals in BAI Audit Staff 897 Audit Staff 897 Supporting Staff

Audit Activities

Types of Audit Financial AuditSpecial Audit Performance Audit Management Audit

Entities subject to BAI Audit Examination of Accounts Submitted by Auditees Examination of Accounts Submitted by Auditees 64,375 Entities About 1,000 Entities every year 약 400 여개 Field Audit and Inspection

Entities subject to BAI Audit Audit Universe 14 % Central Government Agencies 37 % Provincial /local Governments Provincial /local Governments 8%8% 8%8% Public Entities 41 % Government-Supported Entities and Others Government-Supported Entities and Others

Goals of Audit Activities Supporting Successful Government Operations and Increasing the Benefits to Citizens Supporting Successful Government Operations and Increasing the Benefits to Citizens BAI helps government use taxpayer’s money in frugal and transparent manner

International Cooperation

Served INTOSAI as its Chairman (2001~2004) International Cooperation

Serving ASOSAI as its Secretary General (2009~ ) International Cooperation

Reform of the National Audit System Reform of the National Audit System

Reform of the National Audit System Legislative Basis Presidential Decree, and Internal Rules Presidential Decree, and Internal Rules Constitution, BAI Act Internal audit lacks independence and professionalism. Independent, External Audit Non-independent, Part of Internal Controls Non-independent, Part of Internal Controls Unclear role division between BAI audit and internal audit caused overlapping audit and other inefficiencies. Unclear role division between BAI audit and internal audit caused overlapping audit and other inefficiencies. Audit by BAI Internal Audit Criticism Character

Background and Purpose of the Enactment  The Act governs the whole public audit system, thereby strengthening the legal basis for internal audit in the public sector.  The Act, as general law for public sector internal audit, purports to promote the effectiveness of internal audit by strengthening independence and professionalism, and establishing audit standards and procedure. Reform of the National Audit System - Public Sector Audit and Inspection Act of

Background and Purpose of the Enactment  The Act also aims to make clear the role division between the BAI and internal audit units, and establish a cooperation structure between them, thereby enhancing the efficiency of internal audit in the public sector. An enhanced cooperation structure will work for the benefit of knowledge-sharing and coordination of audit planning.  The Act also stipulates that BAI provides capacity-building support for internal audit. Reform of the National Audit System - Public Sector Audit and Inspection Act of

Leading by example in bringing changes to the government, we will always do our best for the benefit of the people. Leading by example in bringing changes to the government, we will always do our best for the benefit of the people

Thank you!