Transcript Slide 1
MOSCOW, NOVEMBER 12 – 14, 2013 THE RESEARCH 1. Respondents 8 respondents from SAI Indonesia : auditor, investigator, R &D 2. Time 3 weeks (Sept to Oct 2013) : distribution, collection, process Results – Corruption Results – Corruption Q1 Legal status of SAI Constitution Q2 Organizational Structure of SAI Q3 Fixed term of Board or Head of SAI Q4 Relationship of SAI with government Board or collegiate model Yes Independent Q5 Fiscal or financial independence of SAI No Results – Corruption Q6 Legal mandate of SAI Central & local government, state-owned enterprises, social undertakings Q7 Audit Services of SAI Q8 Specific articles about role on anticorruption Q9 SAI’s anticorruption strategy Yes : When finding • Establishing a special unit Financial, fraud for forensic performance, indications, an audit compliance, auditor report • Capacity environmental to law building for enforcement forensic audit authorities Q10 SAI’s strategic goals & actions Capacity building for forensic audit Results – Corruption Q11 Q12 Detecting corruption embedded in regular audit services Special departments of SAI assigned to anticorruption activities Yes, incidental Yes, Forensic audit unit Q13 How long such departments have been in place? 5 – 10 years Q14 SAI has adequate audit personnel Very few Q15 SAI provides regular antifraud & anticorruption training to auditors • Fraud awareness; • Fraud auditing; • Fraud risk assessment Results – Corruption Q16 SAI has specific manual or guidelines Yes : Forensic audit guidelines Q17 SAI’s approach in anticorruption Both Proactive & Reactive Q18 SAI’s course of action upon discovery of red flags The red flags will be referred to the special department Q19 SAI’s facilities or mechanisms Q20 SAI’s mandate, tools or techniques Anti-corruption educational/trai ning programs Governing Code of Ethics for Government Accountants and Auditors • Illegal gratuities • Extortion • Asset misappropriation • Nepotism • Illegal activities in procurement Results – Corruption Q21 Q22 Q23 The most instrumental audit services in the detection and prevention of corruption Audit tools & techniques performed to detect corrupt activities & transactions The most high profile corruption case uncovered 1. 2. 3. 4. Fraud Audit Financial Audit Compliance Audit Performance Audit 1. 2. 3. 4. 5. Data collecting Risk Assessment & analysis Data analysis Interviews & inquiries Case analysis Cases 1. Infrastructure (sport center) case; 2. Bank bailout; 3. Procurement of Police driving simulator device; The best audit practices 1. Data analysis; 2. Interviews Q24 SAI’s reporting detected corrupt activities SAI issues a special report Q25 Parties to whom SAI submits report containing findings on corrupt activities Law Enforcement Body Results – Corruption Q26 Q27 Q28 Legal Actions SAI can initiate Mechanism to ensure that the audit findings and recommendation s are properly acted upon Field of the anticorruption efforts that SAI contribute best Recommendations 1. 1. 2. Monitoring on audit recommendati on follow-up Coordination with law enforcement body Detective actions 2. Preventive actions Q29 SAI’s performance Fair Q30 SAI’s method to obtain objective information about the effectiveness of its anticorruption policy and performance 1. In-house research and studies 2. Third-party satisfaction surveys Results – Corruption Q31 Q32 Q33 Q34 Q35 Implementation of IntoSAINT Methodology Controls having sufficient maturity level Changes in the legal framework and organizationa l structure of your SAI Factors hampering SAI’s role in the fight against corruption Laws, rules & regulations guarantee those conducting fraud/forensic audits the rights to the following 1. Yes : Establish a permanent unit dealing with forensic audit 1. Collusion between law enforcers and corrupt people 2. Authorized officials lack commitment 3. Some superiors cover up for their subordinates 4. Lack of competent and experienced staff to handle corruption cases Access to government offices’ accounting records, financial statements, contracts and other legal instruments Yes 2. 3. Management attitude Vulnerability/ risk analysis Recruitment & selection Results – Corruption Q36 Q37 Q38 The role of SAI towards creating awareness and promoting good governance SAI’s cooperation with foreign counterparts SAI’s legal instrument for a joint undertaking 1. Focus on preventive actions regarding fraud or corruption, 2. Promote fraud control system as a tool of fraud prevention; 3. Recommend improvements on internal control; 4. Uphold personal ethics and integrity; 5. Detect red flags 6. Proceed them to law enforcement agencies 1. USAID 2. ASOSAI 3. INTOSAI WG FACML Yes : Agreement or Memorandum of Understanding with law enforcement bodies Results – Money Laundering Results – Money Laundering Q1 Specific article in constitution or law Q2 SAI’s antimoney laundering strategy No No Q3 Embedded detecting money laundering in audit services 1. Yes, but incidental 2. No, not a concern Q4 SAI’s special unit dealing with money laundering Q5 SAI’s special unit in place No, SAI does not deal with money laundering None Results – Money Laundering Q6 SAI’s approach 1. Not in mandate 2. Limited to red flags Q7 SAI’s action upon red flags Q8 Mechanism to promote detection of money laundering Red flags will be Governing Code of referred to anti- Ethics for Government Accountants and ML agency Auditors Q9 The most accessible ML’s basic steps 1. None 2. Placement Q10 SAI’s Specific manual No Results – Money Laundering Q11 SAI’s personnel Q12 Regular training for auditors Very few No Q13 SAI Report money laundering No special report Q14 Parties whom SAI submit audit report Q15 SAI’s legal actions Law enforcement agencies Recommendation Results – Money Laundering Q16 SAI’s antimoney laundering efforts 1. None 2. Detective Q17 SAI’s performance in combating ML No Mandate Q18 SAI’s method to obtain informationa bout the effectiveness of its anti-ML policy and performance None Q19 SAI’s access to bank records No Q20 Hampering Factors to SAI’s role 1. 2. Authorized officials lack commitment Lack of competent and experienced staff to handle money laundering cases Results – Money Laundering 1. Q21 Q22 Q23 Q24 Improvement to SAI’s role Exchange of information & experience Legal Instruments providing for a joint undertaking among SAI & anticorruption agencies Cooperation & attachment of officers No No No Laws & regulation 2. Reorganization Thank You Very Much For Your Attention..