Musa KAYRAK Principal Auditor, CISA December, Tehran

Recommendation 1 Improve constitutional and legal basis in order to ensure better functioning of SAIs

 Established by virtue of the Constitution and enjoys a permanent legal status  Mentioned the first Constitution(1876 ) of the Ottoman Empire (Chamber of Accounts)  Maintained its status in 1924, 1961 and 1982 Constitutions of the Turkish Republic.  The Law on the TCA

Recommendation 2 Improve all aspects of independence of SAIs

 Independent of the legistlative, executive and judicial branches  President and members: ◦ A fixed term under the Constitution or law ◦ The fix term of office of the President of Turkish Court of Accounts shall be five years. May be elected twice at most. ◦ Members are elected until retirement.

 Enjoys financial independence without any intervention of the Ministry of Finance ◦ Within the scope of the general budget ◦ Preparing its own budget independently ◦ Does not have to follow the general budgeting procedures as it is the case for other public administrations under the general budget. ◦ According to the article 62 of the Law on the TCA, the Presidency of TCA shall submit its budget directly to the Turkish Grand National Assembly (TGNA) and forward one copy to the Ministry of Finance.  The Turkish Grand National Assembly has the final say on the budget of the TCA. ◦ However, in practice, the TCA does not face any budgetary limitation imposed by the TGNA.

Recommendation 3 Broaden audit mandate of SAIs to strengthen the external audit function in the public financial management and control system

 Central or national government agencies, bureaus, offices, instrumentalities and local government units at all levels  In addition to this, the TCA has the power to audit:  All types of administrations, organizations, institutions, associations, enterprises and companies affiliated to, or founded by public administrations  Domestic and foreign resources and funds, including European Union funds;  All public accounts, including private accounts, funds, resources and activities regardless of whether these are in the public administrations budget;  Accounts and transactions of international institutions and organizations within the framework of the principles set out in the relevant treaty or agreement

Recommendation 4 Build a strategic approach to fight against corruption

1. National Strategy for Improving Transparency and Strengtening Anti- corruption 2. Strategic Plan of TCA Anti-corruption Strategy and Action Plan of the TCA 4. Anti-fraud manual (to be prepared)

Recommendation 5 Develop methodologies and business processes to determine high risk areas and fraud indicators

1. General risk assessment methodology of the TCA 2. Implementation of audits: 1.Physical observation and site visits, 2.Risk analysis and analysis of complaints and referrals received and 3.Cross control of data obtained especially from different sources. 3. Sources for RF &FI:  Frequently mentioned subjects in the official reports of criminal act written by auditors  Main issues highlighted in the denunciation letters,  Hot topics or alleged cases of corruption in the media  Legal conflicts which involve auditees of the TCA.

Recommendation 6 Investigation power is not appropriate for the most SAIs. Yet, each SAI needs to carry out an initial review of the suspicious cases of corruption

Trial of accounts is carried by the Chambers of the TCA and TCA judgements results in four main decisions: 1. Compliance of accounts and transactions with legislation in force 2. Indemnification of public loss from those responsible 3. Matters deemed necessary are communicated to relevant public authorities 4. Cases sent directly to the Public Prosecution Office for an investigation when discovered acts involving guilt

Recommendation 7 Use technology to enhance the quality and effectiveness of audits

1. Which technology to use; 2. How to improve the productivity in audit planning and implementation; 3. IT risks that should be highlighted; 4. Dealing with BIG data 5. The better use of information and communication technologies (ITC) in improving communication with all stakeholders.

Recommendation 8 Ensure the self integrity of SAIs

 TCA Experience: Regulation on the professional code of ethics for the TCA auditors  Establishing the Ethics Committee  Implementing an INTOSAINT workshop to improve the internal aspect of transparency and accountability

Recommendation 9 Improve training and expertise of auditors regarding anti-corruption

 Regular trainings on anti-corruption, fraud indicators, provisions of criminal law, tool and techniques to detect corruption and fraud  Build a certified expert team (e.g. CFE)  Support academic thesis and researches in the field

Recommendation 10 Improve collaboration and coordination among SAIs

 A problem beyond national borders  Dissemination of knowledge and experience by seminars, conferences  A database of the detected cases of corruption;  gain knowledge of successful and/or bitter experiences  create a list of high risk areas and develop related methodologies;  take necessary measures in international law;  Joint and parallel audits  Follow-up/audits of international conventions

and finally corruption is deadly and we have to stop it at any cost

Musa KAYRAK Principal Auditor, CISA