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Preface
Guideline for the audit of Corruption Prevention
in Government Agencies
Dear Employees,
The objective of this guideline is to help Supreme Audit Institutions (SAI) auditors
for preparation, conduct and evaluation of audits on anti-corruption policies and
procedures in government agencies. It gives an overview of what is expected to be
installed as anti – corruptive policies, structures and processes in these agencies and
can be used as an audit –tool by the auditors.
Corruption increases the costs of doing business, has an impact on public
expenditures and can deter foreign investments. The Supreme Audit Institution’s
fight against corruption is incorporated in its overall mission, which is realized by
establishing audit priorities and conducting its work based on periodic work plans.
Every SAI should create a strategy of combating corruption and other types of
irregularities which is the following: money laundering, fraud,etc.
Corruption is often defined as the abuse of public authority or trust for private
benefit. Corruption has also the other definitions. For example the definition used
by transparency of international, which is ‘’The abuse of entrusted power for
private gain’’. The world bank definition is the following: The abuse of public
funds or office for private or political gain. The civil law Convention on
Corruption, which done at Strasbourg on 4 November 1999, defines corruption as
requesting,offering,giving or accepting, directly or indirectly, a bribe or any other
undue advantage or prospect thereof, which distorts the proper performance of any
duty or behaviour required of the recipient of the bribe, the undue advantage or the
prospect thereof. Corruption is associated with nepotism or favouritism, clientilism,
cronyism,patronage,graft,bribery,extortion,embezzlement,theft and fraud.

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There are the different types of corruption: Individualized and collective
corruption, bureaucratic, political and business corruption, small-scale and large –
scale corruption, passive and active corruption, ‘’white’’,’’grey’’ and ‘’black’’
corruption.
Laws and regulations concerning the prevention and the fight against corruption,
fraud and money laundering should be a part of a legal system of each country. The
main laws and regulations concerning the prevention and the fight against
corruption are the following: The United Nations Convention Against Corruption,
the United Nations Guide on Anti-Corruption Polices, the United Nations
Handbook on Practical Anti-Corruption Measures for Prosecutors and
investigators, the United Nations Anti-Corruption Toolkit and the Compendium of
International legal instruments on corruption.
In preventing against corruption, specific control objectives are to be identified or
developed for each government organization and are to be appropriate,
comprehensive,reasonable and integrated into the overall organizational objectives.
A primary objective for the government is to prevent errors or irregularities from
occurring in management or financial information or, if any have occurred, to
detect them. When Internal controls and their objectives are not clearly established
and understood, internal control breakdowns can result.
To help achieve control objectives and an orderly and effective internal control
structure, internal control guidelines should provide detailed standarts covering :
segregation of duty including the principles of four eyes, personnel rotation/job
rotation and supervision to establish an environment that prevents and deters fraud
and corruption.
There are several keys to effective corruption prevention, but some of the most
important tools in the institution or organization toolbox are strong internal
controls. The focus of this part is on strengthening internal control role in
corruption prevention.
In Fighting against corruption SAI cooperates with Anti Corruption Agencies
(ACA). Anti-corruption agencies are part of a number of strategies that together
can reduce corruption. This is a separate,permanent government agency whose
primary function is to provide centralized leadership in core areas of anticorruption
activity. These areas may include: policy analysis and technical assistance in
prevention, public outreach and information, monitoring, investigation and
prosecution.
Every public institution or Supreme Audit Institution should be equipped with a
strategic plan to enhance the management’s and staffs concern to prevent
corruption in the organization. In some countries, corruption has been an epidemic.

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It requires a long term and continuous effort to prevent and eradicate corruption.
Consequently, every public institution or Supreme Audit Institution should
establish a strategic plan in order that the efforts taken would be systematic and
well-planned, thus could be easily monitored and evaluated.
Conclusion
Corruption is a termite that is eating up the pith of our society it not only hampers
the individual's growth but also the collective growth of our Country. Hence, it
stands highly imperative to control and then stop this growing menace and in this
case Guideline for the audit of Corruption Prevention in Government comes to our
aid. In fact, Guideline has been beautifully drafted, however, a huge power has
been vested in the hands of the Central and State Government in form of
appointment of Special Judges, providing sanctions etc. Hence the Act would
become oblivious if the matter in question is related to Central or State
Governments.
Mr. Beqa Lezhava
An intern of the Federal Court of Auditors