The Board of Audit and Inspection of the Republic of Korea

ContentsContents

History and OrganizationHistory and OrganizationⅠⅠ

International CooperationInternational CooperationⅢⅢ

Reform of the National Audit SystemReform of the National Audit SystemⅣⅣ

Audit ActivitiesAudit ActivitiesIIII

History and OrganizationHistory and Organization

in 1963in 1963

History of the Board of Audit and InspectionHistory of the Board of Audit and Inspection

The Board of Audit The Commission of Inspection

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Legal StatusLegal Status

Article 97 of the Constitution

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Audit Inspection

Improve Public ServicesImprove Public Services

Examination of the works

of government agencies

and the duties of their

employees

Responsibilities Responsibilities

Audit of the accounts of the State, provincial governments and government-invested organizations

Settlement of the accounts of the State

Report its findings to the President and the National Assembly

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Organization Chart

ChairmanChairman Council of Commissioners

Council of Commissioners

Secretary General (SG)

Secretary General (SG)

1st Deputy SG

1st Deputy SG

2nd Deputy SG

2nd Deputy SG

Deputy SG for Inspection of

Public Service

Deputy SG for Inspection of

Public Service

Deputy SG for Planning & Mgt.Deputy SG for

Planning & Mgt.Audit & Inspection Training Institute

Audit & Inspection Training Institute

Audit & Inspection Research InstituteAudit & Inspection Research Institute

2 Bureaus &2 Groups

(12 Divisions)

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Organization Organization

4 Bureaus &1 Group

(20 Divisions)

3 Bureaus &3 Group

(22 Divisions)4 Divisions

Highest Decision-Making BodyHighest Decision-Making Body

Council of CommissionersCouncil of Commissioners

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SecretariatSecretariat

Audit/Inspection Operations BureausAudit/Inspection Operations Bureaus

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Financial Management and Economy Audit Bureau

Financial Markets and Funds Audit Bureau

Construction and Environmental Audit Bureau

Public Institutions Audit Bureau

Social Welfare Audit Bureau

Government Administration and Cultural Audit Bureau

Provincial and Local Governments Audit Bureau

Special Investigations Bureau

Audit Requests Investigation Bureau

Strategic Programs Audit Group

Education Audit Group

National Defense Audit Group

Provincial Construction Audit Group

Inspection Information Group

Public Internal Audit Support Group

SecretariatSecretariat

Supporting OfficesSupporting Offices

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Planning and Management Office

- Planning & Management, Evaluation & Statistics, Performance Management &

Institutional Improvement, and International Cooperation

Office of the Inspector General

Legal Affairs, Claims Review and Reexamination Office

Public Information Office

Audit Quality Management Office

Administration Support Office

BAI’s Training and Research Institutes BAI’s Training and Research Institutes

Audit and Inspection Training Institute

Audit and Inspection Training Institute

Audit and Inspection Research Institute

Audit and Inspection Research Institute

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Doctoral DegreeHolders

Doctoral DegreeHolders 44 44

Lawyers 35 Lawyers 35

CPAs 68 CPAs 68

ProfessionalEngineers

ProfessionalEngineers 16 16

Total 1,074

PersonnelPersonnel

6 6 Tax AccountantsTax Accountants

Professionalsin BAI

Audit Staff897

Audit Staff897

Supporting Staff 177

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Audit Activities Audit Activities

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Types of AuditTypes of Audit

Types of Audit

Financial Audit

Special AuditPerformance Audit

Management Audit

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Entities subject to BAI AuditEntities subject to BAI Audit

Examination of AccountsSubmitted by Auditees

Examination of AccountsSubmitted by Auditees

64,375 Entities64,375 Entities

About 1,000 Entitiesevery year

약 400 여개Field Audit and InspectionField Audit and Inspection

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Entities subject to BAI AuditEntities subject to BAI Audit

Audit Universe14%14%

Central Government AgenciesCentral Government Agencies

37%37%Provincial /local

GovernmentsProvincial /local

Governments

8% 8% Public EntitiesPublic Entities

41% 41%

Government-Supported Entities

and Others

Government-Supported Entities

and Others

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Goals of Audit ActivitiesGoals of Audit Activities

Supporting Successful Government Operations and Increasing the Benefits to Citizens

Supporting Successful Government Operations and Increasing the Benefits to Citizens

BAI helps government use taxpayer’s money in frugal and transparent manner.

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International CooperationInternational Cooperation

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Served INTOSAI as its Chairman (2001~2004)Served INTOSAI as its Chairman (2001~2004)

International Cooperation International Cooperation

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Serving ASOSAI as its Secretary General (2009~ )Serving ASOSAI as its Secretary General (2009~ )

International Cooperation International Cooperation

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Reform of the National Audit System Reform of the National Audit System

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Reform of the National Audit SystemReform of the National Audit System

Legislative Basis

Presidential Decree, andInternal Rules

Presidential Decree, andInternal Rules Constitution, BAI Act Constitution, BAI Act

Internal audit lacks independence and professionalism.Internal audit lacks independence and professionalism.

Independent, External Audit Independent, External Audit Non-independent,

Part of Internal Controls Non-independent,

Part of Internal Controls

Unclear role division between BAI audit and internal audit causedoverlapping audit and other inefficiencies.Unclear role division between BAI audit and internal audit causedoverlapping audit and other inefficiencies.

Audit by Audit by BAIBAI

Internal AuditInternal Audit

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CriticismCriticism

Character

Background and Purpose of the EnactmentBackground and Purpose of the Enactment

The Act governs the whole public audit system, thereby

strengthening the legal basis for internal audit in the public sector.

The Act, as general law for public sector internal audit, purports

to promote the effectiveness of internal audit by strengthening

independence and professionalism, and establishing audit

standards and procedure.

Reform of the National Audit System

- Public Sector Audit and Inspection Act of 2010 -

Reform of the National Audit System

- Public Sector Audit and Inspection Act of 2010 -

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Background and Purpose of the EnactmentBackground and Purpose of the Enactment

The Act also aims to make clear the role division between the

BAI and internal audit units, and establish a cooperation structure

between them, thereby enhancing the efficiency of internal audit in

the public sector. An enhanced cooperation structure will work for

the benefit of knowledge-sharing and coordination of audit

planning.

The Act also stipulates that BAI provides capacity-building

support for internal audit.

Reform of the National Audit System

- Public Sector Audit and Inspection Act of 2010 -

Reform of the National Audit System

- Public Sector Audit and Inspection Act of 2010 -

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Leading by example

in bringing changes to the government,

we will always do our best

for the benefit of the people.

Leading by example

in bringing changes to the government,

we will always do our best

for the benefit of the people.

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Thank you!Thank you!

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