International Journal of Government Auditing–October 2004
VIII ARABOSAI General Assembly Held in Jordan
Senior ARABOSAI officials convene a session at the Amman General Assembly.
From June 7-10, 2004, delegates from SAIs throughout the Middle East met in Amman, Jordan, to attend the 8th General Assembly of the Arab Organization of Supreme Audit Institutions (ARABOSAI), hosted by the Audit Bureau of Jordan. Participating SAIs were Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates, and Yemen. Guests and observers included Mr. Tawfeeq Bin Ibrahim Tawfeeq, former President of the General Auditing Bureau of the Kingdom of Saudi Arabia; Mr. David M. Walker, the Comptroller General of the United States; and staff of the General Secretariat of the Cooperation Council of the Arab Gulf States, the INTOSAI General Secretariat, the INTOSAI Development Initiative, and this Journal.
Opening Ceremony
The opening ceremony took place in the Royal Hotel in Amman. Mr. Salem Al Khazaleh, President of the Audit Bureau of Jordan and the incoming President of ARABOSAI, gave a heartfelt welcome to all participants. The meeting was held under the auspices of His Majesty King Abdullah Il Ibin al-Hussein, who was represented by Prince Faysal Ibin al-Hussein. Also present were the Prime Minister, ministers and other senior Jordanian officials, and a number of ambassadors to Jordan from the Arab states.
Mr. Al Khazaleh opened the plenary by addressing many of the challenges to auditing public funds in the context of international changes. He called upon the Arab SAIs to further the Arab “joint action system,” particularly with regard to disseminating technical knowledge and sharing experiences.
Dr. Ahmed El Midaoui, first president of the Supreme Board of Accounting in the Kingdom of Morocco and the outgoing president of the ARABOSAI Governing Board, reminded the participants of ARABOSAI’s objectives and praised the organization’s continuous efforts to pursue those objectives, which have enabled it to hold a prestigious position within INTOSAI and the regional SAI organizations. Ms. Faiza Kefi, First President of the Court of Accounts of the Republic of Tunisia and Secretary General of ARABOSAI, also expressed her satisfaction with the achievements of ARABOSAI, citing especially its seriousness and perseverance in the implementation of training programs and other activities.
Technical Theme Presentations
The 8th ARABOSAI General Assembly was organized around two technical themes. Plenary addresses introduced each theme and were followed by delegate debates on the professional and technical issues discussed in the principal papers and other presentations. Conclusions and recommendations were developed and approved for each theme.
Theme 1: Modernizing SAI Auditing Methods
The SAI of Kuwait served as president of the session while the SAI of Jordan served as the coordinator. Saudi Arabia prepared the comprehensive theme paper, and 11 other SAIs—Jordan, Tunisia, United Arab Emirates, Sudan, Iraq, Qatar, Kuwait, Lebanon, Egypt, Morocco, and Mauritania—also presented papers on the topic.
Conclusions and recommendations on this theme included the following.
- SAIs should be provided with complete management and financial independence.
- SAIs should be provided with financial and moral incentives so that they can (1) attract and retain staff who possess the necessary qualifications, competence, and specialized expertise to conduct audit work and (2) encourage others to participate in audit work.
- SAIs should pay attention to planning, executing, and setting standards for audit work as well as conducting the studies and research necessary to define and address the impediments to audit work.
- SAIs should be interested in the outputs of universities and specialized professional institutions in the auditing and accounting fields with a view to linking auditing and accounting education more closely with advances in the field of information technology.
- An ARABOSAI work team, composed of member SAIs, should be established to keep up with innovations in auditing, share knowledge with member SAIs, encourage staff secondments in order to be better acquainted with other SAIs, and define priorities.
- Member SAIs should modernize the systems and instructions governing the financial conduct of their respective governments and their own institutions.
- Member SAIs should apply the comprehensive auditing approach used by more advanced SAIs to replace the traditional auditing approach.
Theme 2: Relations and Complementary Functions of SAIs and Internal
Audit Entities
Egypt served as president of the discussion session while Jordan served as coordinator.
Iraq prepared the main study, and nine other countries—Jordan, Saudi Arabia, Sudan,
Qatar, Kuwait, Lebanon, Egypt, Mauritania, and Yemen—submitted papers on this
theme.
Conclusions and recommendations on this theme included the following.
- The laws governing SAIs should have language that compels the agencies being audited to implement recommendations put forth by audit agencies.
- SAIs should show appropriate concern for internal audit entities given the importance of the latter and the role they play in implementing auditing tasks and protecting public funds. If internal audit entities do not exist, SAIs should strongly encourage and support their creation or the integration of financial audit entities into the management structures of executive agencies.
- Internal audit entities should have an appropriate level of authority and independence in the executive agencies within which they operate. Executive laws and regulations should guarantee this authority and independence so that these bodies can carry out their tasks and achieve their objectives.
- In those cases where SAIs rely on the results of work performed by internal audit entities within the executive agencies, the SAIs must first check the audit scope and ensure that these internal audit entities are sufficiently independent and competent and that the work can be relied upon.
- SAIs should be concerned about corrective actions and reform as well as compliance.
- SAIs should be legislatively authorized to carry out comprehensive performance auditing. SAIs should also be concerned with preparing and developing standards to establish the appropriate relationship between internal auditing and financial auditing.
- Joint meetings should be held between SAIs and internal audit institutions—possibly with the participation of legislative and executive entities—to discuss economic and management problems and find appropriate solutions to them.
- SAIs should provide assistance and advice to executive agencies to complement their institutional development, including organizational structures, laws, and regulations, while at the same time ensuring that SAIs do not become executive bodies.
- After the discussion of this theme and its recommendations, the General Assembly resolved that member SAIs should have the freedom to adopt those recommendations that suit their particular situation.
ARABOSAI Business
Dr. Ahmed El Midaoui, first president of the SAI of Morocco and president of the Governing Board, presented the board reports on ARABOSAI’s activities and financial condition as well as the actions taken to implement its organizational plan of action.
The General Assembly approved the following during its meeting:
- scientific and training workshops for 2005 through 2007;
- the Governing Board’s recommendation that the Training and Scientific Research Committee present a brief description of each workshop theme;
- three topics for the 8th scientific research competition: the role of SAIs in the accountability of public funds, SAIs and the application of electronic governance, and environmental auditing;
- continued commitment to translating INTOSAI’s International Journal of Government Auditing and encouragement of SAIs to translate guidance issued by SAIs in advanced countries;
- the draft ARABOSAI financial program for the years 2005-2007 within specified limits; and
- three technical themes for the 9th General Assembly meeting: the role of SAIs in the administrative development of states; the contribution of auditing standards and procedural guides to enhancing the quality of audit work; and the development of auditing standards in light of electronic data systems.
During the General Assembly, Dr. Osama Jaffer Faqeeh, president of the SAI of Saudi Arabia and a member of the INTOSAI Governing Board and the Strategic Planning Committee, and Mr. David Walker, Comptroller General of the United States and Chairman of the INTOSAI Strategic Planning Committee, discussed the draft INTOSAI Strategic Plan that will be presented for approval at the Budapest Congress in October 2004 and responded to delegates’ questions. Mr. Walker provided information on the extensive efforts that the Strategic Planning Committee has made to respond to member SAIs’ comments and address any concerns. He also shared with delegates a presentation on the evolving role of SAIs, the changing nature of their work, and new methods and trends.
Election of the Governing Board and Audit Committee Members
During the general business session on the last day of the assembly, a new Governing Board for the ARABOSAI was elected. In accordance with the provisions of the ARABOSAI statutes, Dr. Ahmed El Midaoui announced the transfer of the General Assembly presidency to the Audit Bureau of Jordan. Morocco, which hosted the previous ARABOSAI Assembly, is the first vice president. Yemen, which will host the next ARABOSAI Assembly in 2007, is the second vice president. Dr. Abdullah Abdullah Al-Sanafi of Yemen extended an invitation to the delegations to participate in the 9th General Assembly in the city of Sana’a. The delegates elected four member SAIs—Algeria, United Arab Emirates, Kuwait, and Egypt—to the Governing Board. They join the current members of the Governing Board—the Secretary General of ARABOSAI and the SAIs of Saudi Arabia, Bahrain, Libya, and Lebanon.
The General Assembly also resolved to set up a financial audit committee to audit ARABOSAI accounts for the years 2004, 2005, and 2006. The committee is composed of the SAIs of Sudan, Qatar, and Mauritania.
Other Activities
Throughout the conference, the President of the Audit Bureau of Jordan and his staff were gracious and hospitable hosts. Before the start of the General Assembly, delegates and invited guests toured the ancient city of Petra, a historical treasure of Jordan built over 2,000 years ago. On Tuesday evening, the participants were treated to an evening of Jordanian food and music. On Wednesday evening, delegates and guests enjoyed dinner at a hotel at the famous Dead Sea. On the last day of the conference, Mr. Salem Al Khazaleh presented delegates representing their SAIs with awards commemorating their attendance at the VIII ARABOSAI General Assembly. He also gave awards for the best articles presented at the conference.
For additional information, contact: ARABOSAI General Secretariat, c/o Ms. Faiza Kefi, First President of the Court of Accounts of the Republic of Tunisia, fax: ++71 76 78 68; e-mail: arabosai@gnet.tn.
Editor’s note: The author wishes to acknowledge the contributions of Nadera El Tayyan, Audit Bureau of Jordan, to this article.