Audit Types conducted by the NAO
The NAO conducts financial, performance and compliance audit of the entities subject to its audit based on the constitutional and legal framework of its establishment and in accordance with the standards of the International Organization of Supreme Audit Institutions (INTOSAI).
The entities subject to the NAO’s audit are specified in the NAO’s law. However, as per article (4) (g) of its law, the NAO may audit other entities that are not included in its audit mandate if His Majesty the King has authorized the NAO to do so.
The NAO’s audit mandate does not cover entities whose confidential affairs must be respected in accordance with the Constitution or the Law.
Furthermore, confidential budget expenses relating to national security at the Ministry of Interior, the National Guard, the National Security Agency and other entities are exempted from audit by the NAO.
With some entities, such as political societies, the NAO’s audit is limited to the audit scope specified in their law of establishment, (article 15 for political societies). Within that scope, the NAO carries out an audit of the society’s account books, documents, income, expenditure and other financial matters to verify the soundness of the society’s resources and the legality of its expenditures.
The NAO audits entities subject to its audit either on its own initiative or at the request of these entities.
The audit carried out by the NAO may be comprehensive or selective according to the guidelines set out in the work plan (Article 7).
If the NAO discovers any financial and administrative violations, it cannot lead the investigation into these violations as this does not fall under its jurisdiction. Instead, it notifies the concerned entity subject to its audit about the violations and requests it to correct the procedure in question. Furthermore, the NAO has the right to refer the issue to the concerned authority to take criminal proceedings, if it has material evidence that a crime has been committed (article 11).
Likewise, if any entity subject to the NAO’s audit discovers any financial or administrative violation, it must provide the NAO with a report on such violation and must immediately refer these violations to investigation (article 17).
In addition, under article (29) of the Constitution, any individual may contact the NAO in writing and with his/her signature, if he/she has evidence of financial or administrative violations with regard to the soundness and legality of the use of public funds. A Group approach to the NAO can only be made by statutory bodies or Corporate Persons.
If there is compelling evidence of serious financial or administrative violation, the Auditor General may instruct the concerned directorate within the NAO to carry out a special audit and submit a report on the findings to the concerned authorities (article 21).