First: Background on GAB:

The inception of (GAB) dates back to 1391,H Corresponding to 1971 in line with the dictates provided in the Royal Decree No: R/9 of 11.2.1391.

The GAB’s Charter had distinctly spelt out the GAB’s functions in respect of Post Financial Audit, Performance Audit and Compliance Audit. The latter type of Audit Seeks to ascertain commitment to and application of systems, Regulations and operational procedures/practices in the course of operations.

The Charter had asserted on the need to maintain complete independence while discharging Financial Audit Assignments .

Article(1) of the Charter states that the GAB is an independent institution with a direct line of reporting to the Prime Minister, His Majesty the King, While Article (3) states that the appointment of the GAB’s President is promulgated by a Royal Directive and may not be deposed or placed on pension unless it has been announced by a Royal Directive. In terms of the monthly salary and after-service remuneration, the President of GAB is treated according to the Provisions Provided for Senior Government Staff on the Ministerial Status.

Article(4) of the Charter states that a Vice President is appointed by Virtue of a Royal Directive. Such Appointment bears an implicit indication of the degree of independence the legislature desires to allocate for the GAB. The organizational Hierarchy Shows two Assistant Vice-President Positions.

The first one shown is entrusted with and responsible for the management of the Financial Audit sector as well as the compliance Audit sector. Four Departments are associated with this sector as follows:
- The General Administration for the Audit of Government Civil Sector Accounts.
- The General Administration for the Audit of Military Sector Accounts.
- The General Administration for the Audit of Public Corporations and Company Accounts.
- A number of Departments and Branches ( a copy of GAB’s Hierarchal Chart is Attached).

The other Assistant Vice-President is responsible for the management of the Performance Audit sector. To this Sector two Departments are affiliated:
- The Performance Audit Department for Corporations and Companies.
- The Performance Audit Department for Ministries and Government Departments.

The GAB’s Charter had established it mandatory that GAB’s Auditees Should provide all accounting records, financial statements and other documents and information available at the disposal of GAB’s auditors to enable the auditors discharge the Audit tasks with impartiality and objectivity. The GAB’s Auditees are further required to offer all possible facilities needed by GAB’s Auditors and inspectors in the course of discharging their duties. The Charter had imposed it on the Auditees to provide replies on GAB’s observations within a specific timeframe not to exceed a month of-date of reporting such findings.

The Charter had firmly emphasized the importance of independence of GAB’s staff to ensure their neutrality to stay aloof from any external influences that might impair or tarnish their professional integrity.

In this context, the Charter prohibits the GAB’s president, the vice-President or any other staff of GAB to work at any other government or non-government Institution during their term of office, with or without pay.

The GAB’s Functions:

1- The GAB is responsible for the execution of Post-auditing on the state’s revenues, expenditures, current and fixed assets and to oversee the proper utilization and maintenance of these resources.
2- For the implementation of the provisions contained in the preceding Article, the GAB shall develop the relevant executive regulations subject to the approval of the Prime Minister. The GAB undertakes as well, to identify the necessary agencies and the executive organs capable to fulfill the following objectives:
- To provide assurances that the state’s revenues and due amounts in cash or kind or services have been appropriately collected and entered into books according to the prevailing regulations and that expenditures have been consumed in accordance with the provisions contained in the annual budget and in accordance with prevailing regulations.
- To provide assurances that the state’s fixed and curvet assets are being employed to achieve the objectives of their allocation and that the concerned agency Possesses the ability to preserve the safe-custody and appropriate deployment of such resources to remain immune from abuse or deployment to achieve objectives other than those originally designated by the Auditee.
- To ensure that GAB’s respective Auditees referred to in the provisions of Article(9) of GAB’s Charter consistently and comprehensively realize the application of their internal financial and accounting regulations and that their financial behavior is devoid of actions that contravene with such internal financial and accounting regulations.
- To establish a follow-up strategy to ensure the competency and viability of the financial and accounting rules and regulations in force and their potency to cope with any possible managerial development that night take place in the Kingdom and to identify areas of inadequacies together with the relevant proposals for development or proposals for substitute rules and regulations.

GAB’s Application of Functions:

All GAB’s Auditees are required to submit all accounting data and documents to enable GAB:
1- Assume its functions according to the Charter. Auditees are also required to provide every possible facilities needed by GAB’s auditors and inspectors in line with the executive regulations that might be issued in this respect.
2- Report its audit findings to the subject Auditees demanding the implementation of the necessary actions within a month of-date of reporting such findings.

Second: Auditees subject to GAB’s Audit:

1- All Ministries, Government Departments and their Branches.
2- Municipalities, Rural Communities and water Departments.
3- Public Corporations and other Departments with independent budgets for which the State appropriates part of the state’s money either by way of subsidy or investment.
4- Every Private Enterprise or company or Corporate body and public corporations, in which the Government Contribute to its capital share or guarantees a minimum level of profit.

5- Every other body or organization the GAB is nominated to audit its accounts following a directive from the custodian of the Two Holy Mosques or by virtue of a resolution from the council of Ministers.

Fourth: Types of Audit GAB Conducts:

GAB discharges its Audit Tasks Within the scope of its jurisdiction for the following types of Audit:
1- Financial Audit.
2- Performance Audit.
3- Compliance Audit (Regularity Audit).
4- Comprehensive Audit.

Fifth: GAB’s Reports:

1- The Annual Report:
In the end of each Fiscal year the GAB submits an Annual Report to the Custodian of the Two Holy Mosques The King of The Kingdom of Saudi Arabia and a copy to the Council of Ministers. The Report contains a global comprehensive evaluation of the State’s Financial Management. It also contains individual assessments on the Financial performance of each Auditee together with a statement on the Final Account for the Fiscal Year providing as well a brief statement on GAB’s activities during the subject Fiscal year.

Subsequently, The Annual Report is referred to the Consultative council for review and detailed discussion in the presence of GAB’s senior staff invited to account for and respond to enquiries, “Should it be so required”.

The Report, is thereafter submitted by the Consultative council before the Custodian of The Two Holy Mosques The Prime Minister, duly supplemented with the Councils recommendations and resolutions concluded on the topics of the Report.

2- Reports on GAB’s Audit Findings:
The GAB reports on the Audit Findings and Results/Conclusions revealed during the Audits in respect of its Auditees’ Accounts.

The GAB reports as well, on the Performance Audit activities either in a comprehensive form for Auditees’ with no specific branches or Alternatively, the GAB reports its findings on the basis of specialized sectoral classification in respect of Auditees having numerous branches to facilitate replies on the subject findings.

3- Other Reports:
The President of GAB is authorized to submit before the Supreme Royal Authority other reports which could be monthly, quarterly or half yearly during any given fiscal year. Such reports may be of a general or special nature on a Specifie topic during the subject fiscal year.

Six: GAB’s Professional Manuals:
- Audit of Accounts and Government warehouses.
- Comprehensive Auditing Standards Manual.
- Administrative Contracts Audit Manual.
- Administrative Communications Audit Manual.
- GAB’s Preparation of Auditors for Review of Accounts and budgets Manual.
- Expenditures and Government Accounts Audit Manual.
- Performance Audit Manual.
- EDP Audit Manual.
- Revenues Audit Manual.

Seven: Committees and working Teams Contributing on behalf of GAB to International and Regional organizations:

1- The ARA Bo SAI:
- Manuals and Auditing Terminologies Committee.
- Training and Scientific Research Committee.
- International Journal of Government Auditing.
- Environmental Affairs Auditing sub committee.
- Strategic Planning Team for the Arab Group.
- Strategic Planning Team for Information Technology.

2- The ASOSAI:
- ASOSAI Training Committee.
- ASOSAI Environment Committee.

3- INTOSAI:
- INTOSAI, Finance and Administration Committee.
- Privatization Audit Working Group.
- Environment Audit Working Group.
- Auditing Standards Committee.
- International Organization Audit Working Group.
- Subcommittee for SAI Independence.

4-Gulf Cooperation Council:
- Committee of SAI Deputies of Gulf Cooperation Council.
- GCC SAIs Committee for Training and Human Resources Development.
- Task Force For Development of Draft Auditing Standards.