Presentation on theme: "Papua New GuineA Auditor-General’S Office"— Presentation transcript:
1Papua New GuineA Auditor-General’S Office Audit to Detect Fraud and Corruption10th ASOSAI Research ProjectPresenter:Joan Arni, Director Legal.
2PNG KEY FACTSPopulation: 6,587,000 approx Capital: Port Moresby; 275,000 Area: 462,840 sq km (178,703 sq ml) Language: 715 indigenous languages Religion: Protestant, indigenous beliefs, Catholic Currency: Kina Life Expectancy: 57 GDP per Capita: U.S. $2,100 Literacy Percent: 66
4PNG Physical Environment Mountains in Morobe Province.
5PNG Physical Environment Ramu River, Kainantu, Eastern Highlands Province..
6Role of the Auditor-General’s Office (AGO) Established under the PNG Constitution and operates under the Audit Act 1989Independent external auditor to the PNG ParliamentProvides assurance over management of public sector entitiesInspects and audits, and reports at least once each yearConduct audits, evaluations and investigationsAssess matters of economy, efficiency, effectiveness and/or accountabilityWork closely with the Public Accounts Committee
7AGO Audit Activities Key audit activities include: Financial audits of agency financial books and recordsPerformance audits of agency programs, projects or activitiesDistrict Services Improvement Program (DSIP) auditsInvestigationsOver 600 different entities are subject to audit, including National Departments, Provincial and Local-level Governments, Statutory Bodies, Hospitals, Trust Accounts, etc.
8AGO StructureThe AGO has three operational audit branches and a corporate services branch:National GovernmentProvincial GovernmentStatutory BodiesCurrently 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)
9Audit 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 guidelinesAssist SAIs to introduce and integrate fraud and corruption procedures into standard audit practices and audit methodologiesAvoid significant surveys and questionnaire and the subsequent research and analysis that would followNot include any information that would soon be out dated or is available from more information sources
10Audit to Detect Fraud and Corruption (cont) The AGO has proposed the following structure for the guidelines to be developed:IntroductionWhat is meant by fraud and corruption; Why there is a need to focus attention on fraud and corruption; The objectives of these audit guidelinesIncreased Audit Focus on Fraud and CorruptionRole 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 issuesFraud and Corruption Control StrategiesSignificance of fraud and corruption control strategies; Essentials of internal control: Prevention; Detection; Response; Monitoring, Reporting and Evaluation
11Audit to Detect Fraud and Corruption (cont) The Role of Audit to Detect Fraud and CorruptionKey stakeholders in fight against fraud and corruption; Defining the role and responsibilities of audit; Reporting and investigation arrangementsFraud and Corruption Audit PracticesMethods 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; PayrollMeasures on Improving Audit Detection of Fraud and CorruptionInfluencing behaviours e.g. newsletter, workshops, presentations; Training programs; Evidence collection and data analysis; Sampling methodologiesReferencesSurveys and research on fraud and corruption; Links to fraud and corruption websites; Journals, articles and books on fraud and corruption
12Audit to Detect Fraud and Corruption (cont) Fraud is addressed in audit. The essence the role of the Office of the Auditor-General is :-PreventiveDetective