Solely time will inform when the world begins recovering from the extreme affect of the COVID-19 pandemic. Auditors, and specifically Supreme Audit Institutions (SAIs), will be able to provide insights on whether government systems were sound and prepared to face a crisis of this scale , whether or not their responses had been cheap, and the way they will make enhancements sooner or later. So, is it a vacation for auditors until then? Removed from it. 

Governments are taking drastic measures similar to emergency legal guidelines, lockdowns, and journey restrictions. They’re spending large assets to buy emergency medical gear and provides, construct hospitals and morgues, present stimulus funds to pay the underprivileged, and increase the financial system. Controls and checks and balances have taken a again seat, opening alternatives for corruption. Some SAIs try their greatest to mitigate these dangers whereas others are observing how the scenario unfolds, however all are desperate to study from earlier experiences and assist curb the pernicious results of corruption.  

Supreme Audit Institutions can play an important role during crises.  In 2015, for instance, South Korea’s Board of Inspection and Audit (BAI) carried out an audit of the federal government’s response to the outbreak of MERS (Center East Respiratory Syndrome). This audit discovered weaknesses within the response, together with lack of transparency and coaching on early detection, in addition to insufficient coordination and communication amongst authorities. The federal government and parliament acted rapidly to deal with these weaknesses in order that the nation could be a lot better ready for future pandemics. 

Already within the midst of COVID-19, the Kuwait State Audit Bureau has been performing a real-time audit, as a part of its ex-ante audit mandate. They’ve audited over $650 million value of pandemic-related contracts up to now and saved roughly $7 million.

These examples reveal what Supreme Audit Establishments can contribute, whether or not by performing a real-time audit to attenuate fraud and corruption or post-crisis audits when international locations face financial recessions. SAIs have to proceed monitoring that public funds and public companies are delivered correctly. Nonetheless, they face many challenges, together with restricted accessibility to auditees, expertise infrastructure, and connections to carry out distant audits, together with excessive expectations from key stakeholders on audits’ high quality and timeliness.

To handle these challenges, SAIs should adapt and reform. With COVID-19 affecting all international locations, SAIs have to study from earlier case research and create a repository of classes realized, proactively talk with stakeholders, and advise governments on methods to be ready for future crises.  There are challenges for personal auditors as nicely; the Worldwide Auditing and Assurance Customary Board (IAASB) has already communicated that COVID-19 will considerably affect the way in which that audits are undertaken.

The auditing career has been evolving for a few years. SAIs have skilled requirements and tips on audits of catastrophe administration, however COVID-19 will inevitably take this to the subsequent degree, requiring elevated creativity, expertise, and smarter auditing practices. The Worldwide Group of Supreme Audit Establishments (INTOSAI), regional organizations, and growth companions are at the moment coordinating on the way forward for the auditing career within the context of catastrophe threat administration.

The INTOSAI Growth Initiative is strengthening its e-learning services and shall be establishing a cooperative audit of Sustainable Growth Purpose 3, which aspires to have purposeful well being programs all over the place that won’t depart individuals behind, as some programs are vulnerable to doing with the present pandemic. For the Center East and North Africa, the Arab Group of Supreme Audit Establishments is at the moment creating a plan to assist the area’s SAIs cope with pandemic-related audits. The World Financial institution is creating a dialogue paper by crowdsourcing inputs from its groups who help SAIs, on experiences of auditing catastrophe administration.  

Within the meantime, the difficulty of SAIs’ independence, a long-standing problem that hampered the effectiveness of SAIs, will worsen throughout COVID-19. Although needed within the present circumstances, emergency legal guidelines can provide governments extra energy together with relaxed accountability. Whereas the world anticipates a extreme recession, each penny counts, and the independence of Supreme Audit Establishments to carry governments accountable and supply audits shall be extra vital than ever. There shall be no audit holidays within the foreseeable future.

Catastrophe Danger Administration


Mona El-Chami, Senior Governance Specialist, World Bank, Governance Global Practice, Middle East and North Africa

Mona El-Chami

Senior Governance Specialist

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