Audit scope of supreme audit institutions

Abstract

Nowadays the scope of supreme audit is of great importance to decision-makers. The main reason for this is that citizens, members of legislature, international operators like to know how public resources are being used. By this means citizens determine their public preferences; with their representative authority, members of legislature control the activities of executive; international investors shape their investment decisions and credit institutions shape their lending decisions. The supreme audit results are used as the main source of reference for these determinations and decisions. In this respect, the scope of supreme audit should be kept as wide as possible in order to have an effective supreme audit. Public revenues, expenditures and assets and/or the institutions using the public resources directly or indirectly can be taken as a reference for the determination of the scope. According to first distinction public expenditures in general, all public revenues and public estate and assets are within the scope of supreme audit. The central government, provincial organization, self-regulation public organizations, public enterprises, social security institutions and local authorities which use these resources directly are generally within the scope of supreme audit. If it is to become effective, the supreme audit should cover other legal structures that use public resources in addition to the relevant public institutions. In these respects, private sector organizations, political parties, associations and foundations which use public resources directly or indirectly should be considered within the scope of supreme audit.