1. Papua New GuineA Auditor-General’S Office
Audit to Detect Fraud and Corruption
10th ASOSAI Research Project
Presenter:
Joan Arni, Director Legal.

2. PNG KEY FACTS
Population: 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

3. Where in the World is PNG

4. PNG Physical Environment
Mountains in Morobe Province.

5. PNG Physical Environment
Ramu River, Kainantu, Eastern Highlands Province..

6. 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

7. 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.

8. 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)

9. 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
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

10. 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
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
Fraud and Corruption Control Strategies
Significance of fraud and corruption control strategies; Essentials of internal control: Prevention; Detection; Response; Monitoring, Reporting and Evaluation

11. 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
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
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
References
Surveys and research on fraud and corruption; Links to fraud and corruption websites; Journals, articles and books on fraud and corruption

12. Audit to Detect Fraud and Corruption (cont)
Fraud is addressed in audit. The essence the role of the Office of the Auditor-General is :-
Preventive
Detective

13. Questions
Thank you for your time