Office of the Auditor
General of the Union
www.oagmac.gov.mm

POLICY, OBJECTIVE AND FUNCTIONS OF THE OFFICE OF THE AUDITOR GENERAL OF THE UNION

Policy

1.       The Auditor General of the Union has to audit the accounts of receipt and payment of the Union and submit the audit report to the President of the Union and the Pyidaungsu Hluttaw simultaneously.

Objective

2.       The office of the Auditor General of the Union has to audit whether or not Union Level Organizations, Union Ministries, Government Departments, Government Organizations and Nay Pyi Taw Council manage their money, prepare and keep the accounts properly; it has to prescribe the accounting system for them and inspect whether or not it is applied as prescribed, inspect the work implementation of them and submit the report transparently.

Functions

3.       Functions are as follows:

(a) The Office of the Auditor General of the Union has to draw up Annual Audit Plans and Quarterly Audit Plans for a fiscal year, and audit functions are to be carried out in accordance with the policy and objective by reviewing and implementing Monthly Progress Reports and Annual Performance Reports.

(b) The Office of the Auditor General of the Union draws up the annual Training programme, and conducts Basic, Intermediate and Advanced level Accounting and Office work Proficiency Training Courses for the Government staff of other Ministries. For the staff of this office and Offices of the Auditor General of the Region or State, In-house Proficiency Training Course for Auditors and Senior Auditors, Refresher Course for Township and District Audit Officers and Assistant Directors, In-house Proficiency Computer Training, Internal Control and Internal Audit Special Upgrade Courses are conducted. Moreover, under the supervision of Myanmar Accountancy Council, in order to augment accounting technicians and accounting professionals, Diploma in Accountancy Part (I) and Part (II) Training School, and Certified Public Accountant Part (I) and Part(II) and Diploma in Accountancy Part (I) and Part (II) Training Courses in Yangon Training School.

(c) It has to increase momentum in implementing the process of e-Government. (to increase implementing the process of department-to-department works by means of online system.)

Functions of Audit

4.       The Auditor General of the Union empowers the Deputy Auditor General, the Auditor Generals of the Region or State and Audit Officers at various levels of Audit Office in performing the duties under the Auditor General of the Union Law.

5.       The primary objective of the audit is to examine whether or not there is fraud and error, and as the consequence of audit improvement, the audit objective is not only to detect fraud and errors and to check the manufacturing, trading, profit and loss account and balance sheet which are presented by the audited entity as financial statements, to provide an audit opinion whether or not they are prepared under the existing laws and regulations and the operational result and the capital position on financial condition of the entities show true and fair view but also to evaluate to what extent the operation of the entity has the effect on the Union and the people. So, the audit comprises examining not only accounting records and documents but also performances.

6.       The Office of the Auditor General of the Union conducts the audit work by means of the following three types of audit;

          (a) Financial Audit: Examination of financial statements to express auditor's opinion on whether the entity's financial statements are consistently prepared using Generally Accepted Accounting Principles and whether these financial statements present true and fair position of operational result and financial position of the entity.

          (b) Performance and Operational Audit: Examination on whether the entities manage and utilize the resources such as means (personnel), money (finance) and material economically, efficiently and effectively.

          (c) Compliance Audit: Examination on whether the entities comply with prescribed law, rules, regulations, directives and orders in conducting its activities and financial transactions.

7.       Financial audit, compliance audit and performance audit (examination of economy, efficiency and effectiveness) mentioned above being integrated; comprehensive audit is being performed for the purpose of identifying to what extent there is effect on the Union and the people by managing and controlling the resources such as man (staff), money and materials which the entity has already utilized economically, efficiently and effectively within the framework of law, rules and regulations.

8.       The System and Function of Audit of the Auditor General of the Union are Regular or Annual audit, Functional Audit/ Specialized Audit or Audit in Depth and Audit of Special Assignment on Duty. In implementing these audit functions, in order to present timely audit reports more effectively, actions to be taken promptly by the relevant organizations on audit findings, audit winding-up activities are carried out, and the audit report is written, issued and dispatched.

9.       Independence is very important to auditing. Independence means being separately free from the audited entities. Thus, the responsibilities of the audit are segregated from the administrative work and the auditing can be done separately and freely from the administration of the audited entities, then the audit findings can be objectively reported to the relevant organization for the benefit of the Union and the people and the audit objectives will also be achieved. If the administrator is assigned in auditing without segregating the duties of auditing and administration, it may imply reviewing its performance by itself. Thus, according to the Principle of Independence of Audit, auditors should not be assigned even temporarily in finance, accounting and management of the ministries. Only if so, the conflict of interest can be avoided and independence can be maintained.

10.     Moreover, the function of audit of the Office of the Auditor General of the Union is separated from internal audit function of audited entity. Internal audit is the division assigned by the management of the entity for examining the entity's operations.

11.     In order to represent the auditor's questions in the course of audit and take necessary action on the audit findings, audit report is issued. After issuing audit report, it is necessary for the relevant entity to reply with regard to taking action within appropriate time limit.

12.     Auditing can be mistakenly viewed as finding fault. The objective of the audit is not to find fault, but to help to be more effective in the performance of the entities, to raise and acquire more Union funds and to use systematically and effectively without wasting the funds that is allocated by the Union. The reduction of the interest to the Union and the entities can be prevented by correcting audit findings of irregularities and the weaknesses of internal control in time. The interests to the nation and the entities can be improved.

13.     According to Section (4) of the Myanmar Accountancy Council Law (1994), the Auditor General of the Union is the chairman of the Myanmar Accountancy Council and then it is constituted with (16) members by the Union Government. The tenure of the Myanmar Accountancy Council is four years.

14.     According to the Section (7) of the Myanmar Accountancy Council Law, the duties and power of the Council are as follows:

a.       giving advice to government departments and organizations on matters concerning Accountancy, if such advice is sought;

b.       conducting, managing, and supervising training course in Accountancy conferring diplomas and certificates therefor;

c.       arranging for practical training pertaining to Accountancy, prescribing the period of apprentice service and recognizing the accountants who can provide training;

d.       scrutinizing and recognizing certificates and degrees in Accountancy from foreign countries, and stipulating requirements for citizens who hold such certificates or degrees to be registered;

e.       appointing a suitable person as the Registrar and prescribing his duties and responsibilities;

f.        communicating and cooperation with international accounting institutions with a view to promoting development of Accountancy;

g.       forming the Apprenticeship and Training Supervisory Committee with Council members and other suitable citizens;

h.       prescribing and/or altering the list of government departments and organizations which can provide training in Accountancy, and delegating such powers to the Apprenticeship and Training Supervisory Committee;

i.        reviewing as may be necessary whether the training provided at the Accountancy courses conducted under this Law is up to specified standards;

j.        forming necessary committees and boards and prescribing the duties thereof;

k.       scrutinizing and allowing the establishment of professional institutions for development of Accountancy profession and providing guidance and supervision thereon;

l.        taking action against the Practicing Accountants who are negligent of their duties or who violate their code of professional ethics;

m.      carrying out measures for the successful fulfillment of the objectives of this Law.

15.     To participate in ASEAN Economic Community (AEC) and ASEAN Free Trade Area (AFTA) in 2015, we are planning to present the bill amending Myanmar Accountancy Council Law (1994) in December 2013.

16.     All organizations perform their activities mainly with the noble purpose of promoting public interest, and the duty of the office of the Auditor General of the Union is helping to keep them upright in performing these activities in accordance with financial rules, not to deviate from the policy, ways and objectives that have been laid down. Especially, in implementing to establish a modern developed democratic nation, according to the Auditor General of the Union Law, audit functions are to be carried out efficiently and effectively in accordance with the policy and objectives by giving special consideration to the interest of the Union and the people for the emergence of Good Governance and Clean Government.