Financial Crime World

Financial Compliance Audit Procedures in Brunei Darussalam Under Scrutiny

Brunei Darussalam’s Financial Audit Institution has undergone significant changes since its establishment in 1935. In this article, we’ll explore the current state of financial compliance audit procedures in the country and the role of the Supreme Audit Institution (SAI) in ensuring transparency.

History of the SAI

The SAI was established by law with its Auditor General appointed by the head of state. Prior to 1989, the auditor general position was held by foreigners. In 1989, however, the position was handed over to locals, marking a significant shift in the institution’s history.

Authority and Responsibilities

The SAI has investigative powers and is responsible for auditing entities owned or managed by the royal government. It also reviews the finance of the royal government and can request all financial records from institutions or organizations under its purview. While it cannot seal documents, experts may be called upon to provide testimony in support of the audit, and cooperation with relevant parties is also permitted.

Audit Procedures

The SAI conducts audits on finance, performance, compliance, and electronic data processing (EDP) in accordance with the Audit Law. The institution has autonomy in designing its workplan but does not have authority to recruit its own staff. Reports are submitted to the Ministry of Finance for approval, and interim audits are not conducted.

Limitations

While the SAI has investigative powers, its financial independence is limited as it does not control the state budget. The Auditor General must submit a budget proposal to the Ministry of Finance for approval. Additionally, reports are not publicly presented or shared with the media, which may limit transparency.

Head of SAI

The Head of SAI, Haji Yusop bin Haji Mahmud, is responsible for leading the institution’s efforts in ensuring financial compliance and transparency in Brunei Darussalam. Under his leadership, the SAI plays a crucial role in maintaining accountability and preventing fraud.

Conclusion

In conclusion, while the SAI has undergone significant changes over the years, its authority and responsibilities remain limited by law. The institution’s autonomy in designing its workplan is a positive step towards ensuring transparency, but more needs to be done to increase public trust and confidence in financial compliance audit procedures in Brunei Darussalam.

Key Takeaways

  • The SAI was established in 1935 with its Auditor General appointed by the head of state.
  • The institution has investigative powers and is responsible for auditing entities owned or managed by the royal government.
  • Reports are submitted to the Ministry of Finance for approval, and interim audits are not conducted.
  • The Head of SAI, Haji Yusop bin Haji Mahmud, is responsible for leading the institution’s efforts in ensuring financial compliance and transparency.