Musa KAYRAK Principal Auditor, CISA August, Ankara

 A problem beyond national borders  Dissemination of knowledge and experience by seminars, conferences, RPs…  Joint and parallel audits: NACSs, neighbor countries…  Follow-up/audits of international conventions

 A database of the detected cases of corruption;  gain knowledge of successful and/or bitter experiences  create a list of high risk areas and develop related methodologies;  take necessary measures in international law; e.g.: egov.nik.gov.pl

 Not possible to give one unique answer  Investigation  scrutinizing lifestyles, public behaviors and relations of officials… hidden cameras to record bribe-taking…  Audit:  financial records. Not easy to launch full-fledged investigations: ◦ Extend of audit evidence ◦ The available audit resources (budget and human resources)

 SAIs without investigation power ◦ No need but necessary to improve preliminary investigations  unnecessary involvement of judiciary ◦ Case of the TCA  SAIs with investigation power ◦ Forensic audit unit for knowledge creating and management

 Not equipped with the mandate to develop anti-corruption standard for public servants as it is the case in Turkey.  Two possible ways of contribution: ◦ review implementation of such standards as a part of the examination of internal controls ◦ The by-laws and regulatory processes in the nature of by-laws, to be prepared on financial matters  consultative opinion of the TCA.

 Responsibility rests with regulatory agencies  Case of state enterprises

 No regular statistics provided to the public on the content of the suspected cases of corruption  The area of public constructions such as public buildings, roads etc.  Mostly related with the crime of fraud during the fulfillment of contractual obligations.

 Physical observation and site visits,  Risk analysis  Analysis of complaints and referrals received and  Cross control of data obtained especially from different sources.

 NA  Anti-corruption Strategy of the TCA  to prepare the audit strategies and annual audit programs by considering the areas with high risk of fraud and corruption  Sources for RF &FI:  Frequently mentioned subjects in the official reports of criminal act written by auditors to the Presidency of the TCA,  Analysis of the inherent and control risks  Main issues highlighted in the denunciation letters,  Hot topics or alleged cases of corruption in the media  Suggestions to be made by the auditors and  Legal conflicts which involve auditees of the TCA.

 General risk assessment methodology of the TCA  certain risk criteria related to corruption ◦ Number of denunciation letters about the auditee received by the TCA ◦ Number of alleged cases of corruption concerning the auditee

 Denunciation and/or complaint letters via e- mails, post office and a web-based application developed to implement the right for information of citizens.

 A dedicated web-based complaint system by the help of a robust business process and document management system ◦ Automation every single step concerning the evaluation of the complaints ◦ Producing regular or on-request management reports ◦ Analyzing the complaints and assessments of the auditors so as to create fraud indicators and/or red flags for the future audits ◦ Better meeting the expectations of external stakeholders ◦ Complying with the legal requirements of confidentiality and security

 No such units at TCA  Detecting corruption already embedded in the regular audit services  A preliminary review to gather sufficient information and evidence

 Article 35 of the Law on the TCA  ISSAIs  Main standards for TCA audits  ISSAI 1240 “The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements”  Language barrier

 Analysis of; ◦ risks ◦ audit findings which involves a certain amount of public loss and ◦ corrupted cases revealed during regular audits  Using IT systems in launching general risk assessments  Publication of audit reports  deterrent role

Musa KAYRAK Principal Auditor, CISA