Audit Bill presented to Parliament

Much delayed Audit Bill which defines the powers of Auditor and which provides provisions to set up an office of national audit was presented to Parliament yesterday

The Bill presented by Chief Government Whip Gayantha Karunatileke also provides provisions to appoint an Audit Service Commission and to set up a state audit service.

As per the Bill a national audit office will be set up to assist the Auditor General in discharging of his duties and functions. It shall consist of the Auditor General himself, a staff comprising the members belonging to Sri Lanka Audit Service established under the section 30 of the legislation.

An audit service commission will be established under the article 153A 9 (1) of the constitution consisting of the Auditor General and four other members appointed by the President on the recommendation of the Constitutional Council.the commission will have the power to appoint committees to assist it, introduce schemes to enhance the quality of performance of the staff of the national audit office, give directions on carrying out internal audits and make rules for which specific provision that as has been given in the Bill.

According to the Bill the Minister in charge of public corporation, business or other undertaking vested in the government under any written law and companies registered or deemed to be registered under the Companies Act No 7 of 2007, in which the government or a public corporation or a local authority hold 50 percent or more shares of that company may, with concurrence with the Minister of Finance in consultation with the auditor general will appoint a qualified auditor or auditors to audit the accounts of such entity. The auditor general may in writing inform the auditor or auditors that he proposes utilize his or their services for the performance or discharge his duties and functions under his direction and control.

However the Auditor General will be bound to obtain the permission from the relevant magistrate’s court, examine and audit any account, transaction or an activity of a financial institution, of any person where he feels that money belonging to an entity has been fraudulently, irregularly or wrongfully paid into such a person’s account. He is also bound to obtain views from the governing body of an entity on the results of the audit carried out.

As per the Bill a national audit office will be set up to assist the Auditor General in discharging of his duties and functions