I. Conducting the Audits
1. The Office of the Auditor General of the Union and the regional Audit Offices conduct Financial Audit, Compliance Audit and Performance Audit, and submit the audit reports in line with the Auditor General of the Union Law.
2. The audits are conducted after preparing the Annual Audit Plan and Quarterly Audit Plan. Risk areas of the audited entities are identified, materiality of the subject matters is determined, and the requested data and information are reviewed, compared and analyzed, and audit programs are prepared for each audited entity. After that, executing the audit processes, preparing the draft audit report, and issuing the audit report are conducted. And then actions taken by the audited entities on the audit report are reviewed. Then the audit reports including significant findings sent by Offices of the Auditor General of Regions/States are reviewed, necessary follow-up actions are taken, and audit processes of Offices of the Auditor General of Regions/States are overseen and guided.
3. Regarding the information needed for the audits, the following processes are performed:
(a) Discussing with the responsible persons from the audited entities (Discussion);
(b) Interviewing the responsible persons from the audited entities regarding the information which need to be confirmed (Interview);
(c) Reviewing the documents provided by the audited entities (Document Review) and Analysing them (Analysing);
(d) Asking with questionnaires (Questionnaire);
(e) Conducting physical examination in the areas where physical confirmations are necessary (Physical Examination);
(f) Obtaining writing confirmations from responsible persons (Confirmation);
4. During the course of the audit, the following processes are performed:
(a) Preparing the draft audit report after the discussion within the audit team,
(b) Modifying the draft report in accordance with the instructions of each level of the audit management after preparing and submitting it to each level of the audit management,
(c) Sending the draft audit report to respective audited entities for getting confirmation,
(d) Winding-up the audit,
(e) Modifying after the review of the audited entities’ representations where necessary,
(f) Submitting the audit report to each level of the audit management for issuing the final report,
(g) Sending the audit report to respective audited entities and
(h) Submitting the report on the performance and audit findings of the Union Auditor General to the President of the Union and the Pyidaungsu Hluttaw simultaneously in line with the Auditor General of the Union Law.
5. Reviewing the follow-up actions on the recommendations in the audit report with supporting documents provided by the audited entities when the respective audited entity informs about the completion of the status on the recommendations in the audit report and the matters those are not accepted, completed and need to be re-audited are taken into account in the next audits which have to be performed. Sending management letters to the audited entities regarding the matters those have no informing in time on the actions taken and the incomplete recommendations in the report is also exercised. Enhancing the public financial management can be supported by reviewing the progress of taking follow-up actions of the audited entities on the audit report.
6. The types of audit being conducted are as follows:
(a) Financial Audit
Budget estimates of the Union and Regions or States of the government departments or organizations under the State Fund are implemented. Moreover, the accounts of receipts and payments of Public Debt, Deposit and Suspense relating to the Union Budget are conducted. Financial audit is to give appropriate audit opinion by the auditor after conducting the audit independently to ensure that annual financial statements for such implementation are prepared and presented consistently in accordance with Generally Accepted Accounting Principles or International Public Sector Accounting Standards or International Financial Reporting Standards, existing financial rules and instructions.
(b) Compliance Audit
Compliance Audit is an independent review of whether the activities, financial performance and information of the government departments and government organizations follow the laws, rules, procedures, orders, instructions and regulations of respective government departments and government organizations or not.
(c) Performance Audit
Performance Audit is an independent examination of the situation of economy, efficiency, effectiveness and development according to the planned objectives of work plans or activities undertaken by the government departments and government organizations. Performance Audit is an independent examination focused on the situation of effective and efficient implementation based on the planned objectives and decisions of related government departments and government organizations.
(d) Audit as per Special Assignment/ Coordination
This Audit is conducted if the President of the Union, Speaker of the Pyidaungsu Hluttaw, Speaker of the Pyithu Hluttaw or Speaker of the Amyotha Hluttaw or any union level organization, any union ministry or Nay Pyi Taw Council request in line with the Auditor General of the Union Law to audit any of its activities; and the findings are presented to the relevant organizations after auditing. And also the report shall be submitted to the Pyidaungsu Hluttaw if the Pyidaungsu Hluttaw assigns the Union Auditor General to audit the implementation of works of the union level organizations, union ministries, government departments, government organizations and Nay Pyi Taw Council.
Taking follow-up actions on the audit findings
7. The audited entities are required to give representation during the course of the audit and to take necessary action on the audit findings. They are also needed to reply within a reasonable period of time regarding taking follow-up action after the reports had been issued to them. The required period of time for the response has been set since the issuance of the report. The respective entity shall perform as per the following procedures based on the audit findings:
(a) Matters that need immediate action: An immediate action should be taken to stop at once wastage, damage, loss and embezzlement currently occurring.
(b) Matters that need legal action: A follow-up legal action shall be taken on fraud and abuse that are bound to existing laws. A parallel departmental enquiry shall be performed in accordance with the audit evidence.
(c) Matters that need departmental enquiry: According to an audit finding in the report, although legal action is invalid, action can be taken through departmental enquiry where the head of the organization assumes that the loss occurred due to the negligence and dereliction of the personnel.
(d) Issues raised for information and improvement: As some audit findings are normal, it is sufficient that follow-up actions are taken occasionally where enhancement could be made in the future.
8. If, according to the report, action that has to be taken against the staff of the audited entity occurs, no preliminary enquiry needs to be made; the finding can be assumed to be the evidence of a formal charge against them, and a departmental enquiry shall proceed.
9. If the respective audited entities do not take actions appropriately on the audit reports of the regional audit offices within appropriate period of time or there are incomplete matters, the cases are submitted level by level up to the Office of the Auditor General of the Union (OAG) and the OAG oversees the follow-up actions until the completion.
II. Replying to a request for comment
10. When comments are requested by the respective ministries and organizations, they are replied after being analyzed with Myanmar Financial Management Regulations 35/2017, orders and instructions issued periodically by Ministry of Planning and Finance, terms and conditions included in the relevant contracts, instructions issued by the former President’s Office and the Union Government Office, orders and instructions issued by the State Administration Council, instructions of the Central Committee on Prevention, Control and Treatment of Coronavirus Disease – 2019 (Covid-19) and notifications of the Office of the Auditor General of the Union. In addition, the requested comments related to accounting also are reviewed and replied after being analyzed with relevant accounting standards.