A Modern Approach of the Supreme Audit Institutions: Guidance and Prevention in Public Sector

Abstract

In a constantly evolving society, a modern approach of the supreme audit institutions (SAIs) has intervened as a response to changes in the environment in which they operate. Thus, in addition to the control/audit function, some of the supreme audit institutions introduced a new concept in their work, namely guidance and prevention function. This new function allows the supreme institutions to contribute more to the strengthening of the financial discipline in the public sector and reducing cases of irregularities in the use of public funds and state resources. This article aims to analyze the compatibility of the guidance and prevention function with the independence aspects that are absolutely necessary for the proper functioning of a supreme audit institution, as required by the international auditing standards of INTOSAI for the public sector. Also, there are presented some methods used by several supreme audit institutions to provide guidance to audited entities, as well as the proposals for amending the Law no. 94/1992 regarding the organizing and functioning of the Court of Accounts of Romania regarding the aspects of guidance and prevention.