Financial audit

The NAOF’s financial audits ensure compliance with key provisions on the central government budget and financial management. They also ensure that true and fair information is reported on the revenue, expenses and financial position of the central government and its agencies and bodies.

Entities subject to financial audits

The NAOF’s financial audits cover all central government accounting offices annually. The accounting offices, in other words ministries and other government agencies and bodies, produce their final accounts every year. The NAOF audits these final accounts and prepares financial audit reports on them. In addition, the NAOF conducts annual financial audits of three off-budget funds (Fire Protection Fund, Environmental Damage Fund and State Television and Radio Fund).

Every year, the NAOF also audits the Government’s annual report and the final central government accounts and consolidated financial statements attached to it. The consolidated financial statements cover on-budget entities, central government off-budget funds and unincorporated state enterprises.

In connection with the financial audits, the NAOF also audits systems used for the state’s financial and HR administration.

Financial audit practices

The financial audit report focuses attention on

• true and fair information in the final accounts
• true and fair information on operational efficiency
• budget compliance
• internal control.

The financial audit report may also include a caution relating to budget procedures or impose a disclosure obligation on the audited entity, obliging its management to report on actions taken to rectify the issue that led to the caution.