Audit and oversight

The National Audit Office of Finland (NAOF) audits the legality and appropriateness of the state’s financial management, monitors fiscal policy, and oversees political party and election campaign funding and the use of the transparency register. The NAOF is an independent Supreme Audit Institution. It operates in affiliation with Parliament, and its role and tasks are laid down in the Constitution of Finland.

Audit

The NAOF audits the legality and productivity of government finances and compliance with the budget in accordance with section 90 of the Finnish Constitution. It also audits the reliability of information provided to Parliament about central government finances and the management thereof, as well as compliance with fiscal policy rules.

The NAOF performs its duties laid down in the Constitution through financial audit, compliance audit, performance audit and fiscal policy audit.

The audit work covers:

• the Government and ministries

• government agencies

• off-budget funds

• state enterprises and state-owned companies

• wellbeing services counties

• central government transfers and subsidies paid to municipalities, companies, and other entities

• transfers of funds between Finland and the European Communities.

The NAOF does not audit:

• the finances of Parliament

• funds under the responsibility of Parliament

• the Bank of Finland or the Financial Supervisory Authority

• the Social Insurance Institution.

In its audits, the NAOF applies its internal audit guidelines, which are based on the ISSAI auditing standards issued by the International Organisation of Supreme Audit Institutions (INTOSAI). The ISSAI auditing standards are based on the International Standards on Auditing (the ISAs). These are supplemented by separate manuals for compliance audits, performance audits and fiscal policy audits.

Monitoring and oversight

The NAOF monitors fiscal policy aiming to secure stable and sustainable public finances and transparent and clear fiscal policy rules. Pursuant to the Fiscal Policy Act, the NAOF supervises the setting of and compliance with the rules steering fiscal policy.

Another task of the NAOF is to oversee election campaign and political party funding and receive and publish documents specified in the Act on Political Parties and the Act on a Candidate’s Election Funding. The NAOF also checks that disclosers, such as registered political parties and their district and women’s organisations as well as all candidates elected or appointed as alternate members, disclose the funding they have received according to the law.

Starting from 2024, lobbying activities directed at Parliament and the ministries shall be reported to the transparency register. The NAOF will act as the registrar of the transparency register and oversee compliance with the disclosure obligation.