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Law on Audit of the Kingdom of Cambodia


(last updated 27/11/2009)

Independence

The Law on Audit of the Kingdom of Cambodia was passed by the National Assembly on the 12th of January 2000 at its third plenary session of the second legislature and approved by the Senate on all of its forms and legal concepts on the 21st of January 2000 at its second plenary session of the first legislature and was declared to be conformed with the Constitution by the Constitutional Council, except the article 40.

The National Audit Authority is established on a legal base as the supreme audit institution of the Confederation bound only by the constitution and the law. The purpose of the Audit Law is to establish a National Audit Authority, which is independent in its operations. The National Audit Authority is responsible for executing the external audit function of the Royal Government. The Auditor-General is empowered to conduct audits on accounting records, accounts, management systems, operation controls and programs of government institutions in accordance with generally accepted auditing standards and Royal Government auditing standards. This Law also established the internal audit function in government ministries, institutions and public enterprises.

The Auditor-General and the Deputy Auditor-Generals is appointed by royal decree on the recommendation of the Royal Government and approved by a two-third (2/3) majority of all members of the National Assembly. The Auditor-General and the Deputy Auditor-Generals are appointed for a term of five (5) years and may be reappointed for another five (5) year term only upon the completion of the first term. In case of the Auditor-General or the Deputy Auditor-General(s) die(s), resign(s), disable(s) or commit(s) serious mistake, a new Auditor-General or Deputy Auditor-General(s) shall be appointed under the terms and conditions stated in this Law.

The Auditor-General shall have rank and privileges equivalent to a Senior Minister and the Deputy Auditor-General shall have rank and privileges equivalent to a Minister.

Jurisdiction

The government institutions in the provisions of this Law shall include ministries, institutions, agencies, authorities, national bank, state financial institutions, state and private sector joint venture financial institutions, public enterprises, public establishments, municipal, provincial and local government offices, contractors, suppliers of goods and services to the Royal Government under contracts, and other organizations receiving financial assistance from the Royal Government in addition to their own equity and credits such as tax and duty exemptions and other concessions to non-profit organizations and private investment enterprises.

In this Law, external audit includes the implementation of the following types of audits:

(a) Audit on Financial statements

(b) Audit on the management of credit project financed by external sources

(c) Audit on management systems and operations of all institutions

(d) Audit on evaluation, efficiency and effectiveness of operations

(e) Audit on non-profit organizations, associations, political parties and private investment enterprises as stated in article 2 of this Law

The Royal Government submits the yearly statements of the budget settlements to the National Assembly and Senate for debate and vote. At the same time, the Royal Government also submits these statements to the National Audit Authority for auditing. The National Audit Authority certifies these statements and issues the audit reports to the National Assembly and the Senate.  The Auditor-General issues report to the National Assembly, the Senate, the Council of Ministers, Ministry of Economy and Finance and relevant ministries with regard to the irregularities in the accounting records, monetary and asset management within any entity and remarks on matters related to accounting records, moneys, assets and long-term liabilities in accordance with the provisions of this Law. Notwithstanding any other provision that related to audit matters, the Auditor-General audits the accounting records of any authority or institution, certifies the accounting records, and issues necessary reports to the head of those authorities or institutions and to the National Assembly, Senate and relevant ministries. The Auditor-General also regularly reports to the National Assembly and the Senate any problem arising from the conduct of his/her duties or the usage of his/her powers as stipulated in this Law.

After preparing a performance audit report of any institution, the Auditor-General sends a copy of this proposed report to the head of this institution. If the head of the institution gives the written comments to the Auditor-General within twenty-eight (28) days after receiving the proposed report, the Auditor-General considers those comments before preparing a final report. Otherwise, if the head of the institution has not replied within the time period specified above, the proposed report shall be considered valid.

More details

Related:

Audit Profile: National Audit Authority of Cambodia, by Tani, Chan. Publication: International Journal of Government Auditing. April 1, 2005. http://www.allbusiness.com/accounting-reporting/auditing/1042754-1.html

Phnom Penh Post. July 2009. Cambodia’s national audit authority receives technical assistance from British. Retrieved July 25, 2009 from http://www.phnompenhpost.com/index.php/2009070827010/Business/national-audit-authority-to-benefit-from-british-experts.html   

Note: For accessibility reason and as a backup material, the law has been uploaded as the following; readers are encouraged to check the main source first.

Sources:

OHCHR Cambodia. A Selection of Laws Currently in Force in the Kingdom of Cambodia: Law on Audit. http://cambodia.ohchr.org/KLC_pages/klc_section10.htm

INTOSAI (Professional Organization of Supreme Audit Institutions (Sais), United Nation). 2009. ROYAL KRAM No.CS/RKM/0300/10 Promulgating The Law On Audit, And ROYAL KRAM NS/RKM/1100/11 Promulgating The Law On Additional Law To The Law On Audit. Retrieved August 1st, 2009 from http://www.intosaiitaudit.org/mandates/mandates/Mandates/Cambodia.htm#Table_of_Contents

Bigpond. The Law on Addendum to the Law on Audit of the Kingdom of Cambodia. Retrieved August 1st, 2009 from http://www.bigpond.com.kh/Council_Of_Jurists/a00-Kram%5CRKM00_11_11_E.htm

The government institutions in the provisions of this Law shall include ministries, institutions, agencies, authorities, national bank, state financial institutions, state and private sector joint venture financial institutions, public enterprises, public establishments, municipal, provincial and local government offices, contractors, suppliers of goods and services to the Royal Government under contracts, and other organizations receiving financial assistance from the Royal Government in addition to their own equity and credits such as tax and duty exemptions and other concessions to non-profit organizations and private investment enterprises.

In this Law, external audit includes the implementation of the following types of audits:

(a) Audit on Financial statements

(b) Audit on the management of credit project financed by external sources

(c) Audit on management systems and operations of all institutions

(d) Audit on evaluation, efficiency and effectiveness of operations

(e) Audit on non-profit organizations, associations, political parties and private investment enterprises as stated in article 2 of this Law

The Royal Government submits the yearly statements of the budget settlements to the National Assembly and Senate for debate and vote. At the same time, the Royal Government also submits these statements to the National Audit Authority for auditing. The National Audit Authority certifies these statements and issues the audit reports to the National Assembly and the Senate.  The Auditor-General issues report to the National Assembly, the Senate, the Council of Ministers, Ministry of Economy and Finance and relevant ministries with regard to the irregularities in the accounting records, monetary and asset management within any entity and remarks on matters related to accounting records, moneys, assets and long-term liabilities in accordance with the provisions of this Law. Notwithstanding any other provision that related to audit matters, the Auditor-General audits the accounting records of any authority or institution, certifies the accounting records, and issues necessary reports to the head of those authorities or institutions and to the National Assembly, Senate and relevant ministries. The Auditor-General also regularly reports to the National Assembly and the Senate any problem arising from the conduct of his/her duties or the usage of his/her powers as stipulated in this Law.

After preparing a performance audit report of any institution, the Auditor-General sends a copy of this proposed report to the head of this institution. If the head of the institution gives the written comments to the Auditor-General within twenty-eight (28) days after receiving the proposed report, the Auditor-General considers those comments before preparing a final report. Otherwise, if the head of the institution has not replied within the time period specified above, the proposed report shall be considered valid.

  1. 05/05/2013 at 8:54 am

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