[Global Corruption Report 2007] Auditing, Accountability and Anti-Corruption

Abstract

"Strengthening transparency and accountability in public finances is a defining challenge for emerging economies seeking to foster fiscal responsibility and curb corruption.2 There is renewed interest in those oversight agencies tasked with scrutinising public spending and enforcing horizontal accountability within the state. However, little is known as to what explains the effectiveness of autonomous audit agencies (AAAs). How effective are they in enforcing financial accountability, improving fiscal governance and controlling corruption? Institutional arrangements for government auditing The core functions of AAAs, traditionally referred to as supreme audit institutions, are to oversee government financial management, ensure the integrity of government finances and verify the truthfulness of government financial information. AAAs contribute to anchoring the rule of law in public finances, including through the imposition of administrative sanctions. In some countries, they also perform key anti-corruption functions, such as overseeing asset declarations, public procurement or privatisation processes."(pg 358)