Auditor General
Ugyen Chhewang The Auditor General told Kuensel that performance auditing was appropriate and timely, especially to discharge the constitutional responsibilities of the authority.

Performance audit would be an integral part of the overall audit approach of the authority to report on the economic, efficient and effective use of public resources, according to the Auditor General.

“Performance auditing is one of the most important tools in promoting public accountability,” he said.

“Though the importance of other forms of audits cannot be undermined, the authority shall increasingly direct its attention and efforts towards performance audit.”

During the three-day annual conference which ended yesterday RAA identified the lack of skilled manpower and financial constraints as some of the biggest stumbling blocks.

The authority is training auditors and drafting 12 audit manuals, which would be adopted by next year, to improve the quality of work. It will make people aware of the Audit Act of 2006.

The conference also resolved to explore the possibility of setting up one more regional office in the western region and a regional training institute to train auditors of the latest auditing techniques would be established.

Meanwhile, in his annual report to the inaugural ceremony of the 9th Annual Audit Conference on July 19, the Auditor General said that the audit recoveries for the year 2005-2006, amounted to about Nu. 33 million which was about 17 percent more than the previous year (Nu. 28 million).

The Auditor General said that the increased audit recoveries were due to improved follow-up and compliance.

He also said that the total monetary irregularities reduced significantly as compared to earlier annual audit reports. The total irregularity reported in 2005 was about Nu. 264.280 million while in 2004 it was about Nu. 369.339 million.

Irregularities pertaining to advances and procurements topped the list with Nu. 61.946 million and Nu. 35.605 million respectively.

The Auditor General said that the irregularities were mainly caused by accounting and internal control weaknesses, inadequate supervisory controls and technical persons. It was also due to outdated rules and regulations and inadequate internal auditing and planning.

The Royal Audit Authority conducted 321 audits, issued 395 audit reports and 260 follow-up reports.

The Auditor General said that about 150 auditors were provided with in-house trainings in IT related auditing, performance auditing and auditing of public utilities. Over 60 auditors also availed trainings, both long and short terms, outside the country.