1. Working with Supreme Audit Institutions in Central Asia
Opportunities & Challenges
FIDUCIARY FORUM
MARCH 2008

2. SAIs in CA – Control Vs Audit
Control & Revision – Soviet legacy
Ex-ante activity rather than Ex-post audit
No certification role in respect of year-end financial statements
Emphasis on expediency and effectiveness of public spending – compliance with budget law
Responsible to the President
No scope limitation, BUT Limited independence
Inadequate legal & institutional framework

3. Audit Requirements in Bank-financed Operations
Annual Financial Statements audited in accordance with acceptable auditing standards – ISA & INTOSAI
Traditionally:
Reliance on Private Sector Auditors
Focus on Financial Audit – Fiduciary Compliance
However:
Increasing emphasis on Country Systems
Reliance of public sector auditors – SAIs
Blend of Financial & Performance Audit

4. WB- SAI Relationship Engagement with SAIs in CA:
Audit of Bank-financed Operations – Kyrgyz Health SWAp – Twinning with UK NAO
Capacity Development:
PFM Reform – Kyrgyzstan, Tajikistan
IDF Grants – Kyrgyzstan, Tajikistan, Uzbekistan
Support to legal reform – Kyrgyzstan, Tajikistan, Uzbekistan
Very limited success

5. CA SAI Challenges SAIs in CA still face a number of challenges:
Weak institutional & legal framework
Independence – limited resources, composition & selection, tenure, reporting, scope
Capacity – Limited professional expertise/technical knowledge, access to information, mandate, adversary relations between SAI and audited objects
Impact – No public availability of findings, inappropriate focus, lack of follow up, inadequate legislative oversight

6. Conditions for Successful SAIs (Kenneth M
Conditions for Successful SAIs (Kenneth M. Dye & Rick Stapenhurt: Pillars of Integrity Importance of SAIs in Curbing Corruption)
Supportive environment – permitted to conduct their work and their reports are used to promote accountability
Clear mandates – Auditing mandates should be anchored in rules set by legislation
Independence – reporting directly to legislature without interference from other branches of government
Adequate funding, facilities, and staff
Sharing of knowledge and experience

7. SAI Capacity Building Strategy
Three Dimensions:
Stronger support for role & performance of SAI to promote increased reliance on Country systems
Increased partnership with SAIs to promote capacity building initiatives
Progressive Reliance on audits conducted by SAIs

8. THANK YOU FOR YOUR ATTENTION