ALRAQABA . ISSUE 16
75
always keen to create strong and constructive
relations with the entities subject to its control
through embracing the motto “Partners and
Auditors”. In addition, SAB helps these entities to
organize their accounting and financial activities
and tries to find solutions to the problems that
they face while performing their work. This is
achieved through effective cooperation with the
state’s official entities and at all levels.
The financial control of SAB shall cover all
public ministries and departments that constitute
the administrative system of the State; the
municipalities and all other local bodies that
have a public legal entity; and the public
commissions, establishments, and organizations
that are attached to the State, the municipalities,
or other local bodies with a public legal entity. It
shall also include companies or establishments
in which the State or any other public legal entity
holds a share of not less than 50% of their capital
or guarantees them a minimum profit, as well as
the companies licensed to utilize or manage one
or more of the public facilities or the companies
that have the privilege to utilize any of the State’s
natural resources.
The Establishment Law of SAB has defined the
audit functions of SAB in the government sector.
Such functions shall include the audit and review
of: revenues – expenditures - personnel affairs –
tenders, practices, and engagements – materials
entrusted to and operations in the public stores
and warehouses - settlement accounts - regular
and current accounts - imprests and loans
granted by the State or any public legal entity –
investments of the State - final accounts of the
previous fiscal year for the State and the public
bodies and establishments whose budgets are
regulated by laws - administrative, financial and
accounting regulations - and any other account
or work that the National Assembly or the Council
of Ministers assigns to SAB to audit and review.
SAB practices its functions through audit,
examination, and review. Audits can be
performed abruptly. Such audit functions shall be
carried out by SAB technical staff holding a high
qualification in law or business or any equivalent
qualification from a university approved by the
State of Kuwait. SAB supports its technical
staff with experienced specialists in fields of
engineering, computer, and administration to
enhance audit efficiency. Audits of SAB can
take place either inside the entities subject to its
control or in SAB headquarters. It is the decision
of SAB to choose where to conduct an audit in
order to ensure better performance.
Audit Methods and Main Audit Reports of
SAB:
The audit functions of SAB are carried out using
two audit methods that comply with the State of
Kuwait’s status, systems, and conditions. Both
pre-audits and post-audits are performed in SAB.
However, more focus is granted to pre-auditing.
It is to be performed before engagement in
tenders pertaining to supply, public works, and
projects when the value of each tender is one
hundred thousand Kuwaiti Dinars or more. On
the other hand, post audits are performed after
engagement or payment and they include all
financial and administrative actions.
SAB prepares several reports on findings of the
audit and examination of records and documents
pertaining to the entities subject to its control.
These findings shall be then reported to the
entities.
The reports of SAB include:
- A periodic report to be sent to the entity
subject to control, including audit and inspection
findings concerning the activities that took place
during the financial period. Each entity should
send its response to the findings within one
month from the date on which it was informed.
