Transcript Data Analysis – Concepts & Principles

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PAPUA NEW GUINEA
AUDITOR-GENERAL’S OFFICE
Audit to Detect Fraud
and Corruption
10th ASOSAI Research Project
Presenter:
Joan Arni, Director
Legal.
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PNG KEY FACTS
Population:
Capital:
Area:
Language:
Religion:
Currency:
Life Expectancy:
GDP per Capita:
Literacy Percent:
6,587,000 approx
Port Moresby; 275,000
462,840 sq km (178,703 sq ml)
715 indigenous languages
Protestant, indigenous beliefs, Catholic
Kina
57
U.S. $2,100
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Where in the World is PNG
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PNG Physical Environment
Mountains in Morobe Province.
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PNG Physical Environment
Ramu River, Kainantu, Eastern Highlands Province..
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Role of the Auditor-General’s
Office (AGO)
 Established under the PNG Constitution and operates under
the Audit Act 1989
 Independent external auditor to the PNG Parliament
 Provides assurance over management of public sector entities
 Inspects and audits, and reports at least once each year
 Conduct audits, evaluations and investigations
 Assess matters of economy, efficiency, effectiveness and/or
accountability
 Work closely with the Public Accounts Committee
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AGO Audit Activities
Key audit activities include:
 Financial audits of agency financial books and records
 Performance audits of agency programs, projects or
activities
 District Services Improvement Program (DSIP) audits
 Investigations
Over 600 different entities are subject to audit, including
National Departments, Provincial and Local-level Governments,
Statutory Bodies, Hospitals, Trust Accounts, etc.
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AGO Structure
The AGO has three operational audit branches and a corporate
services branch:



National Government
Provincial Government
Statutory Bodies
Currently there are 160 full time staff with approximately 120 of
these being audit staff.
All audit staff have an appropriate tertiary qualification and all
are encouraged and supported to undertake further professional
qualifications (such as CPA)
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Audit to Detect Fraud and
Corruption
The AGO believes the project needs to be a manageable and
feasible activity.
We have proposed an approach to the project that should:

Focus on the development of practical audit guidelines
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Assist SAIs to introduce and integrate fraud and corruption procedures
into standard audit practices and audit methodologies

Avoid significant surveys and questionnaire and the subsequent research
and analysis that would follow

Not include any information that would soon be out dated or is available
from more information sources
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Audit to Detect Fraud and
Corruption (cont)
The AGO has proposed the following structure for the
guidelines to be developed:
Introduction
What is meant by fraud and corruption; Why there is a need to focus attention
on fraud and corruption; The objectives of these audit guidelines
1.
Increased Audit Focus on Fraud and Corruption
Role for audit to detect fraud and corruption; Legislative, ethical, risk
management and Auditing Standards requirements; Causes and characteristics
of fraud and corruption; Strategic overview of fraud and corruption issues
2.
Fraud and Corruption Control Strategies
Significance of fraud and corruption control strategies; Essentials of internal
control: Prevention; Detection; Response; Monitoring, Reporting and Evaluation
3.
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Audit to Detect Fraud and
Corruption (cont)
The Role of Audit to Detect Fraud and Corruption
Key stakeholders in fight against fraud and corruption; Defining the role and
responsibilities of audit; Reporting and investigation arrangements
4.
Fraud and Corruption Audit Practices
Methods of auditing fraud and corruption; Integration of fraud and corruption
audit practices into audit activities; Audit templates and checklists; Better
practice examples; Case studies: Procurement; Financial Management; Payroll
5.
Measures on Improving Audit Detection of Fraud and Corruption
Influencing behaviours e.g. newsletter, workshops, presentations; Training
programs; Evidence collection and data analysis; Sampling methodologies
6.
References
Surveys and research on fraud and corruption; Links to fraud and corruption
websites; Journals, articles and books on fraud and corruption
7.
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Audit to Detect Fraud and Corruption
(cont)
• Fraud is addressed in audit. The essence the role of the
Office of the Auditor-General is :-
1. Preventive
2. Detective
3. Preventive
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Questions
Thank you for your time