Supreme audit institutions are national agencies responsible for auditing government revenue and spending. In the past the World Bank and other donors often established parallel auditing systems for their projects, undermining developing countries’ supreme audit institutions, on whose work they could not always rely. In recent years the Bank has tried to strengthen oversight agencies such as supreme audit institutions.
This PREM Note, produced for The World Bank, argues that supreme audit institutions can curb corruption by reinforcing legal, financial and institutional frameworks and by reducing the arbitrary application of rules and laws. This note is intended to help Bank staff appreciate the role and nature of these institutions, particularly in managing public spending, ensuring financial accountability and strengthening public institutions. The Note examines different types of supreme audit institutions, types of audits, audits within the budget cycle and the role of parliament. It goes on to discuss conditions for successful supreme audit institutions and concludes with the limitations of supreme audit institutions and their role in curbing corruption.
