Section 63, SI-The Aduit Service Regulations 2024 Arrangement of Sections 1

SrAn-noRy INSTRUMENT No. 15 oF 2024 Published. llth October 2024 THE AUDIT SERVICE ACT, 2014 (Acr No. 4 or 2014\ THE ALTDIT SERVICE REGULATIONS 2024 Short tittle h elcncrse ofthe powers confelred on him by section 37 ofthe Audit Service Act, 2014, (Act No. 4 of 20i4) the Auditor-General hereby makes th€ following regulations - PARTI-}RELIMINARY L In lhes€ Regulstioos, udess the context otherwise requires lttterpretatioD "Act" means drc Audit Service Ac! 20 I 4; "Advisory Committee" meatrs an extemal independent body established by the Auditor-General with a mandate to validate findings ofmaterial ineguladties; "Audit fees" means cbarge determined by the Auditor- General for conducting an audit of a public money or a public sector body; "Constitution" means the Constinrtion ofSierra l,€one l99l; 'Court" means The High Court of Sierra trone; "Disallowance" means a danial or disapproval by the Auditor-General of an rmlawfiI expenditue of public flrnds either in part or in whole; "Disallowance and Surcharge Committee" means a committee comprising merrbers ofstaffof the Audit Service appointed by the Auditor-General to veri$ findings under Section 12b ofthe Act; "External Auditor" means any ext€rnal auditor appointed in Paxt V ofthe Act; "Executive Authority" means the Accountmrt-General's Department, the Human Resource Manigement Omce and any affected public sector body referred to in disallowance and surcharge matter; "Govemment" means the Government ofthe Republic ofSierra Leone; "Public money" means as defined in the Act; "Public Property" includes any real or personal property and any interest therein choses ir-r action, stocks, shares and debentures, vehicles, machinery equipment finniture or other immovable or movable property belonging to the Govemment or provided for the use of any govemment establishment Sen"ice or Departrnent whether in Sierra Leone or elsewhere. "Swcharge" means a charge levied by the Auditor- General as financial penalties on persons res?onsible for unlawful expenditures; or whose negligence or misconduct led to the loss ofpublic money; 4. 0) The President shall on the recommendation of the Removal of Board requke a member other rhan the member representing the f;It'; Public Service Commission and the Auditor General to vacate the Board. Board on the following grounds - 2. The objectives of these regulations are to provide a objcctivcs regulatory framework for the Audit Service Sierra Leone and to give effect to the provisions of ttre Act. PART II.AUDIT SERVICE BOARD 3. (1) h the eyent ofa vacanry in ttre position ofChairperson Tenure of or any othcr member of the Board, the Board shall within la davs Pl"J commutricate tle vacancy t" dr" P;;.id;;;;;-.r,Ji "ppo#u ""'o*'' chairperson or aly other member of the Board in accordance with section 4 (l) ofthsAct. (2) ln the €vent ofthe end oftenure ofa member ofthe Board, the Board shall within thee months of the impeding end of the tenure of office communicate this to the President who shall appoint a Board member in accordance with section 4 of the Act. (a) if the member has been absent from three cons€cutive meetings of the board without reasonable excuse; (b) if the person has been declared bankrupt or insolvent by an Order ofthe Court; (c) if the person is cotrvicted of an offence involving taud and dishonesty; (d) for proven misconduct which includes but is not limited to failure to disclose interest as stated in section 6 (5) ofthe Act; (e) if a medical report shouring the inability of the member to perform functions and discbarge thc duties ofthe board because of infirnity ofmind or body. (2) The Presideot shall suspend from ofrce a N{ember against whom criminal proceedings are instituted in respect of&aud and dishonesty or for an offense in resp€ct of whicb a sentence of imprisonment without the option of a fine may be imposed and $.lrilst that member is so suspended he or she shall not carD/ out any duties that were required of as a member. (3) The President shall restore the member ifthat member is found not guilty by the Court. 5. The Board shall - (a) detemrine the terms ofreference and scope of its committees. (b) establish a system to regularly monitor the performance of its committees established under section l0 ofthe Act. 6. In the exercise of its power to appoint persons to hold ofiice or act in offices as members ofstaffofthe Audit Service, the Board shall follow the relevant laws, rules, policies and regulations goveming employment ofpublic officers. 7. In the exercise ofits powerto suspend or remove members of staff of the Audit Service, the Board shall in implementing disciplinary measures or taking disciplinary actions against members of staff ofthe Audit Service be guided by the Terms and Conditions ofService ofdre Audit Sewice, and other relevant laws, rules, policies and regulations goveming employment ofpublic offrcers- Appointrnent of members of staff Discipline of Members of staff. Scope. PART I1I. FUNCTIONS AND POWERS OF THE AT]DIT SERVICE E. (l) The Auditor-General shall when undertaking an audit * proilO"a *Orr..aion t I (l ) oftheAcl examine all public accounts in order to ascertain whether - Coftftitlees of the Board. (a) public monies have been fully accounted for and the rules and procedures applicable are sumcient to secure an effective check on the assessment, collection and proper allocation of the revenue; (b) monies have been expended for the purposes for which they were appropriared and the expenditures conform to the authority for such expenditure; (c) the collection ofrevenue and the acquisition, receipt, issuance and use of assets and liabilities conforms witi relevant laws, rules and policies; (d) internal coutrols and risk management systems ard processes aje effective and implemented; (e) that essential records are maintained and the rules and procedures applied arc suffcient to safeguard and control public property; (f) programmes and activities have been undertaken u,ith due regard to effectiveness in relation to the resor.nces utilised and resul* achieved; and (g) whether the accounts present fakly, financial information in accordance with the applicable statutory provisions and approved accounting policies of the Government. 9. TheAuditor-General shall - Quality Managcment. (a) ensure that all audits arc carried out in accordance \trith international auditing standards and approved policies and procedures. Risk AssessmeEt of Audited Entities. (b) The Auditor-General shall arrange periodic independent extemal quality reviews of the Audit Service in conformance with the guidelines of the International Organisation of Supreme Audit lmtitutions (I|llllsAr). 10. (l) The Auditor-General shall €nsure tbat risks assessments are undertaken to identifr entities, fimds and areas of highest risk in order to ensure that high risk areas receive suffrcient audit focus. @) Any risk assessment undertaken shall not absolve the Auditor-General from his duty to ensure that all consiitutional entities, ministries, public entities and statutory funds and other organizations are subject to audit and that appropriate disclosures are made. I I . Every Head ofDivisiog Branch or Unit ofthe Audit Service shall keep a record ofall assignments undertaken by theAudit Service and the report issued in relation to it. 12. (l) The Auditor-General shall ensure that strategic planning fiamework is developed for his audits to ensure that sufficient and adequate coverage is given to all constitutional entities, ministries, public entities and statutory funds and organizations subject to audit. (2) The Auditor-General has the sole discretion in developing the plans and is not subject to the influence or direction from anyone or anything except tbe requirements under the Act and coDstitution- in r€lation to - (a) whether or not a particular audit is to be conducted; (b) the way in which a particular audit is to be conducted; or Record ofAudit Assignments. Strategic Audit PIanning. '7 (s) the priority to be given to any particular mater. 13. An annual audit planning procoss shall be undertaken to Annusl cnsure t}lat an effective and efficient audit plan is implemented f.udit amually, based on the Auditor-Geoeral's assessment of th€ risks in t'-n'na' the managemenl and operations ofthe entities and funds subject to audit. 14. The Auditor-General in exercisins his discretion to carry special out an audft q)onrequest from fte Presidenior Parliament may tal;e Requests' into account whetler - (a) the audit relates to the delivery or financial management of a significant government prognunme, compliance with legislation or government policies to enhance transparoncy, accountability and good govemance, the frnancial management ofan auditee or group ofauditees or any matter considered by the Auditor-General to be in the public interest; (b) ttre audit relates to a matter which cannot be adequately addressed through an amual audit performed for the purpose ofreporting; (c) any public entity other than the Audit Service that is better positioned to deal with the matter; or (d) the audit is lik€ly to unduly constrain tbe Auditor-General in carrying oul his finctions as contemplated in the Constitution or to impair the independence of the Auditor- Gen€ral i5. (l) The Auditor{eneral shall after receiving informatiel Deoision which may be relevant to an audit on request from the Presiaent or f!ffi"n, Auditor{en€ral. (a) in writing acknowledge receipl thereot (b) record details ofthe information received in a register established and maintained for the purposes of audit requested; @) Ifadecision is made to engage in an audit on request requested audit, the President or Parliament must bs notified ofthe decision. (3) In the event tlat the Auditor-General declines to conduct an audit upon request, the Auditor-General- (a) must in writing inform the President or Parliament of that decision; (b) reasons for the decision; (c) information on other available options in respect ofmaking a request; (d) any other information the Auditor-ceneral deems necessary. 16. The range of extemal auditing activities that may be undertaken by the Auditor-General shall include but shall not be timited to the following (a) compliance audits; (b) financial audits; (c) performance or value for money audits; (d) specialised audits, including but not limitedto- (i) information systems audits; (ii) forensic audib; (iii) revenue audis; (iv) procurement audits; Types of Audili. (v) managoment auditsi (vi,; environmental audits; (e) other emerging audit concepts and methodologies recognized by the International C)rgar ization of Supreme Audit Institutions . 17. (l) In the performance ofhis duties under section 1l (l) unrestricted of the Act, the Auditor-Ceneral and any persun aultrorized by hir" $ffi;j:,r, shall have Premises. (a) access to any documenl, book, written, printed and or eicctronic recor4 retums, or any other form ofinformation lreld, produced Persorls. or processed by the audit€d entity or rvhich reflects the fmancial position or perfonnance of the audited entity? (b) access a! any rci.sonable time ofthe day to dre premises or assets ofor under the conuol oithe audited entity? or (c) power to cail lor any relevant information from any staff menber or representative of the audited entit)'. (2) ln exercising the au-.horiry '.rnder this regulation, the Auditor-General or any authorised person shall ensure that any information obtained is not used for any pwpose other than that legally intended and the Auditor-General shall keep in safe custody all the documents and information so obtained. (3) The Auditor- General or any authorised person may make copies of any documenis so produced. Nondisclosurc of Information Limitation to Access to Ext€rnal Auditors. 18. (1) Any member of staff of the Audit Service or any authorised penon shall not, without the conseDt in writing giyen by or on behalf of the Auditor-General, publish or disclose to atr unauthorised person, otherwise than in the course of the duties of that pefion, the contents of a document, communication or information which relates to, or wLich has come to the knowledge of the person in the course of ttat pcrson's duties under tte Act. (2) Any member of staffofth€ Audit Service or a person appointed by the Auditor General who is found to have published or disclosed to an unauthorised person, the contents of a docrmrcnt, communication or information which relates to, or which h8s come to the knowledge ofthe peBon in the course ofthat person's duties under the Act shall bc subject to disciplinary measures in line with the Audit Service Terms and Conditions ofService and the Policy on the Recruitnent ofExternal Auditors, respectively. 19. The Auditor General shall not authorise any extemal auditor-(a) to have access to any books, records, rcturns, reports or other documents, or to entry into any premises, of any component oftle audited entities listed in the schedule of this regulation. O) to have access to any bookE records, returns, reports or other documents, or to enter upon any premises other than those mentioned in paragraph (a) ifsuch acc€ss or entry is likely to- (i) prejudice the security. defense or international relalions of the State or the investigation or detection of offences; @ involve the disclosure of any matters or deliberations of a secret or confidential natue of the cabinet or any sub+ommittee of the cabinetl1 20. ( I ) Wheie any person authorised by the Auditor- General Dissllowanc€ io carrying out an audit examination of a public sector body d establishes a fiDditrg ofan instalcr provided unier section 12 (b) of swcharee' the Act, he should compile a report containirg evidence supporting such finding and submit to his immediate supervisor who shall inform the Auditor-GeDeral of such matters. (2) The Auditor Geueral shall then refer such matters under regulation 20 ( I ) to the Disallou"nce and Surcharge Committee. (a) Claims liabte for disallowance; (b) Claims tiable for disallowance and surcharge; (c) Claims rot liable for disallowance. @) The verification report shall be forwarded to the Auditor- General for his consideration. 21. (l) The Disallowance and Surcharge Committee shall Disallowance verifo all claims ofany irregularities within 30 days and categorise and surchalee them as follows - committee' 22. The Auditor-General must when considering the issuan6s Notice of of a certificate of surcharge to any person who is alLged to trave litiffi t" been liable for any irregularity under section l2 (b) ofthe Act - (a) give notice to that person and the head affected public sector body that he is considering doing so; (b) inform that p€rson and the head of that afected public sector body of the reasons for considering the issuance of a certificate of surcharge; (c) indicate the amormt in r€spect ofwhich the certiEcate of surcharge is to be issJred; t2 (d) invite that person or &e vot€ conholler of thar affbcted public sector body to submit written representations on the matter tothe Auditor-General within 30 days from the date of that notice; (e) ifapplicable, infonn individual members of that affected public sector body that each of them may be held personally liable for any loss, jointly and severally; and (f) provide any other information the Auditor- General may deem necessary, Service of Notic€ of Intention to Surcharge. 2i. issued Wrjtten Submissions (l) The Notice referred to under Regulation 22 shall be directly to the person concemed. (2) Where that p€rson's last lnown address cannot be traced, the Auditor-General shall publish the said Notice in 3 (three) widely read newspapers for three (3) consecutive publications. (3) Any Person, upon whom a notice of intention to surcharge has been issueq must vsithin 30 days of the date on the notice, submit a written submission contemplated in regulation 22 (d), which may also include documents or information on the irregularity which had not previously been submitted to the Auditor General. Z. (1) Where a person fails to submit *Titten submissions or fails to do so within the stipulated period, the Auditor4eneral may proceed on the basis that that person or affected public sector body has no objection to the issuance ofa certificate ofsurcharge. @) Upon receipt ofwritten submissions in response to a Notice ofsucharge, the Auditor{eneral shall refer the issue to the Disallowance and Sucharge Committee to assess tho written submission against fte yerification repon proffered by the Conmrittee on the same issue. (3) The Auditor-General must within I 5 days inform that person in writing the outcome ofthe assessment ofthe submissions indicating whether or not the Auditor-General is still considering issuing a certificate of surcharge and the reasons for his decision. (4) In the event that the Auditor-General after consideration ofthe written submissions is still considering issuing a c€rtificate of surcharge, he must in writing issue an invitation to that Person(s) to make oral submission to an Advisory Commiuee establisbed in terms ofregulatioo 25. (5) Where the person or the head ofthe affected public sector body that has been invited indicates that he intends to make oral submission as contemplated in section I I (d) of the Act, the Auditor-General must refer the matter to the Advisory Commiftee for that purpose. 2s. (.r) General and - TheAdvisory Commiuee shall comprise oftheAodt . 3::X,?"" (a) a l,egal Practitioner ofnot less than I 0 years legal experience, who shall be Se chairperson of the Advisory Committee; (b) an auditing practitioner with 10 ormore years in public sector audit experience; (c) a procurement practitioner with l0ormore years' experience; (d) any ottrer person or persons with relevant competence that tle Auditor-General may deem necessary. (2) The members of the Advisory Committee are appointed in accordance with the terms and conditions determined by theAuditor-General. Oral Hcarings. (3) Any person who agrees to his appointment to an Advisory Comrnittee must before his appointsnent and prior to each hearing declare any potential conflict ofinterest. . (l) The hearing on the oral submissioas must be conducted in accordance with applicable laws and the rules ofnatural justice. (2) The Auditor-General must timeously provide - (a) the members ofthe Advisory Committee with all relevant information pertaining to the matteE and (b) the person, the vote controller ofthe affected public sectorbody orthe individualinembers ofthe affected public sector body, as the case may be, with any documents not yetprovided to him, her or them which cannot reasonably be expected to be in his, her or their possession. (3) No member of staffof the Audit Service or any other person may prior to the hearing on oral submissions brief or otherwise interact with the Advisory Committee on the merits of the matter to b€ heard by it. (4) The mernben ofthe Advisory Commiltee, subject to directions by the chairperson ofthat Conmoittee ask any question or require explanations in respect of any issue relevant to the matter before the Advisory Committee. (5) Subject to the direction of the chairperson of the Advisory Committee, that concemed Person, or those memirers of the affected public sector body may respond under oath and or submit written documents which may not previously have been included in the \+ritten submissions. (Q Merabers of staffof&eAudit Service may in the sole discretion ofthe chairperson ofthe Advisory Committee attend the hearing on the oral submission, but such members ofstaffmay not speak or submit any documents to the Advisory Committee, unless the chairperson in his sole discretion permits otherwise. (7) The Auditor-General may provide devices for an audio rccording ofthe hearing and the Auditor General must upon written request by that person, or tlose memb€rs of the affected public sector body in question fortlwirh and at no cosl provide a copy ofthe recorditrg ofthe hearing(s). n. (1) TheAdyisory Committee shall when detennining tbe oral submissions coDtemplated in regutation 26, take into account - (a) all information provided to it by the Auditor- General prior to the hearing of the oral submissions; O) tbe oral submissions made by the person, the head of the public sector body or the officers ofthe affected public sector body as the case may be. (c) any document submitted by the person, the head ofthe public sector body or the officers ofthe affected public sector body; (d) any norms and standards determined by the Auditor-General for this purpose, if alry; (e) any applicable law; and (0 any other releYant factors. (2) The Advisory Committee must within a period detennined in writing by the Auditor-General submit its findings and recommendations to the Auditor General on the oral submissions made by that pe6orL that vote controll$ ofpublic sector body or those members ofthat affect€d public sector body for consideration by the Auditor General. Considcrations by the Advisory Corrrhittee. I Decision to Surcharge. lssuance uf a Certific e of Surchdge l6 Servicr of Surcharge Certificate 23. Upon receipt ofthe findings and recommendations ofthe Advisory Committee, the Auditor-General shall - (a) consider the findings and recommendations of the Advisory Committee contemplated in regulation 25; and (b) in terms of section l2(c) of the Act but subject to this regulation, take a decision in respect of issuing a certificate of sucharBe to the persor; tbe head ofthe affected public sector body or the individual members ofthe public sector body, as the case may be. 29. The Auditor-Ceneral shall not later than 14 days upon receiving the findhgs and recommendations of the Advisory Committee, in writing inform that person or those members ofthat publ ic sector body his or her decision on the issuing ofthe certificate ofsurcharge as required of by section I I (e) ofthe Act. 30. (1) IffteAuditor-General decides to issue the certificate of surcharge, he must - (a) in accordance with section l2(e) oftheAct, cause the certificate of surcharge to be served on thal person or those members of that public sector body; and (b) in accordance witr se{tion l2(e) ofthe Act cause a copy of the certificate of sucharge to be served on the vote controller of the affected public sector body, together with - @ reasons for his decision; and (D the date or intervals wh€n that Executive Authority shall in writing inform the Auditor- General ofprogress in complying with or executing the certif cate of Surcharge. t7 (2) The certificate ofsurcharge - (a) must be in the form provided for in the Schedule; (b) must be signed by the Auditor-General. 31. The person or members ofthe public sector body specified in the certificate ofsurcharge must pay the amount stipulated in that certificate of surcharge to the bank accormt of the affected public sector body, as f}e case may bo, within 30 days as provided by soinl I (c) dtrAc (2) ln undertaking regulation 32( I ), the Aud itor-General shall request for the provision of the remuneration details of a srmharged public officer from theAccountant General's D€paxErent, the Human Resource Management Office and the affected public body, as the case may be. (3) The information provided under sub-regulation32(2) shall be comidered as the basis for attaching the surcharged Amormt ro the extent ofthe sum lawfully due. 33. Tbe affected public sector body, tle Executive Authoriry contemplated under section l2(c) ofthe Acl must within a period stipulated by the Auditor-General and thereafter at regular intervals as stipulated by the Auditor-General in the certificate of surcharge iD rriting, submit progress reports to the Auditor General on the recovery of the amount specified in the certificate of surcharge. Collection of Surchsrg€ Amount Speoified in Ce(ificate of Surchargc. 32. (l) Where the person surcharged is in receipt of any Pavment of remuneration from the Goyemment or in any institution, suctr !'.f,jts" remuneration shail be attached tothe extent ofthe sum lawfirlly due. pgmunemlien. Progress Repons of surchdge Plyments. 34. Where a person that has beensurcharged, by the Audit.- tfi:;il "t General fails to comply with regulation 33 or if inadequate progress ;, 6o*1. is recorded in the recovery, the Auditor-General shall in writing infonn that person of his intention to institute a civil action for debt recovery in a court ofcompetentjurisdiction. I8 Surcharge Appeals. Rcvocation ofa Surchartc Decision. Auditor- Geneml. 35. (i). Any person aggrieved by a disallowance or surcharge made by the Auditor- General may app€a.l to the High Court as provided by section 93 (7) ofthe Public Financial Management Act, 2016. (2). Any penon intending to appeat theAuditor- General's decision ofsurcharge, shall in triting inform the Auditor-General of his intention to appeal not later than 30 days upon r€ceipt of the certilicate of sucharge. 36. Subject to section 93 (10) of the Public Financial Management AcL 20 I 6. the Auditor General rnay revoke a sucharge made under the Act \yhere it is established that the surcharged certificate was issued under circumstances which includes erroneous standards or the flouting of Natural justice principles. . PART ry- AUDITOR GENERAL AND OTHER STAFF OF THE AUDIT SERVICE 37. The ABditor-General is the head ofthe Audit Service and, as suclL has overall control of and accountable for managing the Audit S€rYice. 38- In the exercise ofhis fimction under section l3 oftheAct rhe Auditor General may approve a progn nme ofdecentralizadon of operations of the Audit Service in any Region in rhe Republic of Sierra Leone. (2) The Documented organizational structure shall comprise a diagrammatic representation of the strufiure and a writtsn description of the scope of operations and activities of the Departsnents as well as their reporting relatiorships. Decatralizdiol of Audit Seryice. Docummtdion 39. (l) Subjoct to section 13 ofthe Acq the Auditor{eneral Strseriztionel may establish Directorates, Deparfirents, Divisions and Units within sti"tu.". fie Audit Service in an organizational structure that such structure shall be communicated to the Board and all members of the Audit Service. q. The Audi.or-General may review the sEuctuxe if he ofReview of considers that in view of prevaiiing circumstances a revised ffiTifliond organizational structure will enhance achievement ofthe objectives ofthe Audit Service. 42. (l) Subject to section 16 of the Act, any person who Atrdits to be assists tle Auditor-General in exercising his powers'and nrcton"ffifff under the Act, shall carry out any such investigation, inspection, oireotivc exarnination, audit or any other assignment subiect to such dfuectives of the as ttr€ Auditor-General may dee.m necesrary. " 6:f:}]il @) The Directorates, Departmetrts, DMsions and Unis so established shall he headed by Deputy Auditor{enerals who shall report fimctionally and administratively to the Auditor-General. (3) Members of staff of the Audit Service who are appointed as heads of provincial offices shall be firnctionally and administrafively responsible to tle relevant Deputy Auditor-General in the performance oftheir duties. (2) The Auditor-General shall on such conditions as he may dotermine, cooperate with p6rsons, institutions and associations in the Republic of Sierra Leone and other countries, and take such steps as he may deem necessary. 43. (l) Where the Auditor-General finds or suspects an Referral indication ofa matter that requires lhe attention of a relevant authority "o*"tt. or hstitution in the coulse ofan audit or investigation, he may submit such information or communicate such suspicion to th€ appropriate institution or authority for further investigation and action in accordance with the legislation applicable to that Authority. 4l. (l) TheAuditor4eneral may establish such Dircctorates, Divisions of Depaftnents, Divisions and Units in the Audit Service as he may tuIllitlM*' deem necessary or expedient for the effective management of the Audit Service. x Oversight on pfo- Gssionalism (2) The Authority or Instinftion contemplated in subr€gulation (1) must, periodically in rrriting, inform the Auditor4eneral of progress in its investigation and of action tak€n coDcerning the information submitted or the suspicion communicated. (3) Ifthe Authoriry or lnstitution takes no further action in rcspect thercof, the authority or institution must immediately, after taking such a decision, provide reasons to the Auditor-General in writing for not taking such further action. ,14. The Auditor General shall ensure that in the discharge of their duties, the members of staff of the Audit Service and other agents working on behalf of the Audit Service shall - (a) possess the professional knowledge and skills comnensurate with the audit work they me engaged in and to not portray thernselves as having an expertise that they do not possess; (b) Adopt a prograrnme designed to ensure higb quality audits. (c) Attain and maiotain professional knowledge and skills- (d) Display professional competence required and exhibit a high standard of general education in a recognized supervisory body. (e) Possess professional competence which involves continued awareness of developments in the auditing profession including relevantnational atrd international pronouncements on accounting, auditing and on relevant statutory requirements and regulations or rules issued by competent bodies governing the profession. 2l 45. (l) TheAuditor General shall ensure tlnt members ofthe conllior of Audit Service avoid conJlict of iuterest in the execution of tlleir lnterest functions. @) The memben of the Audit Service shall r€port to the Auditor-General on any commitrnents or relatiorship that rnay interfere orjeopardize their integrity as iDdependent auditors. (3) The Auditor- General shall maintain a conflict of Interest register. (4) The instances of conflict to be avoided under subregulation ( I ) shall include but shall not be limited to - (a) Relationship or interest that adversely influence, impair or tlreaten professional integrrty; O) An act that is contrary to technical or profess ional audit standards. (a) the possession of the relevant qualification; (b) performance and efficiency in the cxecution of duties by an employee; career development and succession plan; Seniority amongst the employees; and 46. Where a vacancy occurs or it is likely that a vacatrcy may N-otification occur in the Audit Service, the Auditorceneral shalt noti&rhe -Boari "f vuo*tv of the existence or likely existence of a vacancy speciSing the necessary requirements fot such vacancy. 47. Subject to the approval for the Board" every promotion conditions shall be made by consiclering - f?lo,o,,on (c) (d) (e) Subject to the provisions in th€ Employee Handbook and Cooditions of Service. D Promotions within the Service. 'I erms and Conditions of Service. Appointment of Extemal Auditors. C6nditions for Outsouacing Audits. 48. (l) Where there is a vacancy at the Audit Service, the first option to fitl in that position internally, and where the appropriate staff is not available intematly, then it could be sourced extemally. Q) The fiUing of a vacancy for the position of Deputy Auditor-Generals shall be open- 49. (1) As provided by section 20 ofthe Ac! the Board shall, on the advice ofthe Auditor{eneral may from time to time reyise th€ remuneration and other terms and conditions ofservice ofother staff of the Audit Service. (2) Members of the Audit Service shall comply with the provisions ofthe relevant terms and conditions ofservice And breach ofwhich shall result into disciplinary action. PARTV.APPOINTMENT OF EXTERNAL AT'DITORS 50. The Auditor-General may engage extemal auditors or audit firms or other experts to carry out audit or other functions on his behalf: Provided that where the cont-acted or authorized flmction is auditing, the extemal auditors or audit firms or otier experts whom the fi:nction is contacted or authorized shall be qualified to practice as auditors under the relevant laws of Sierra Leone. 5 1 . [n determining whether an audit may be performed by the Audit Service or be contracted out to extemal Auditors, the Auditor- General shall be guided by one or more ofthe following factors - (a) Availability of manpower within the Audit Service; (tr) Availability ofskills and expertise within the Audit Service; (c) The magnitude and complexity ofthe audit worh -21 (d) Specific agreement which either the auditor or audit client has with development partne6; (e) Nature and sensitivity of the audit assignment or the authority or body to be audited; (0 The private sector padicipation policy; or (g) Any other relevant factor as the Auditor- General may deem fit. 52. In exercising the powers contained under section 2 I s1 th. condideralions Act, Auditor-ceneral shall-periodicaily ;"u i"; tb; ";;."io, or n;,[10"'"tinterest from external audit firms interested in conducting Ext€rral such audits for the Audit Service on the platforrn of the Institute of Audito's' Chartered Accountants of Sierra Leoue; (b) upoo receipt ofthe expressions of intrrest, the Audit Service shall send out the applicanfs profile request from which must be complete{ by the ext€rnal sudit firms and retumed to the Auditor-General within a stipulated time frame; (c) upon receipt ofthe completed fmn profile, the Audit Service shall undertake quality assurance processes to pre-qualiry the applicant audit firms against established criteria as provided for in International Standards of Supreme Audit lnstitutions 0SSADI (d) the Committee shall submit a quality assurance report to the Auditor- General that states whether an audit firm is qualified to be listed on the Audit Service database of extemal audit firms together with their Crading; Database of Exicnral Audir Firns- (e) the outcome of quality assurance processes by a CommiEee appointed by the Auditor- General slnll be communicated to applicant audit fiIms. 53. (l) The Audit Service shall maintain a dalabase of qualified extemal audit fims to be appointed by the Auditor Generat to carry out audits on behalf of t]re Auditor4eneral. (2) The database shall be updated regularly (3) TheAudit Service shall classi!the extemal audit fums in the database by grade and size, and category ofpublic institutions for which the extemal audit firm will be eligible to be assigled lo audit. (4) The database shall show the following profile ofthe extemal audit firms: (a) curriculum vitae ofkey personael; (b) location and address; (c) intcmational affiliation, if aly; (d) succession parhers; (e) total op€rational staff; (f) number of years of experience of the institution; and (g) list of organizations currently under audit. 54. Uponreceipt oftheAuditor-Cenerals acceDtance, extemal auditors shall confiIln tbe acceptance in writing to the Auditor-General. 55. The external audit firms appointed by the Auditor-General to carry out work on &e Auditor-General's behalfshall be issued widr ienns of reference and guidelines for the conduct and reporting on audits assigned to them by the Auditor-Ceneral. Confirmation o, A(aeF taocs to conduct Audit. Terms o1' Refelence. 56. The Audior-General shall establish procedures to ensure Compliance that extemal audit firms appointed by the Auditor-General to cam/ with r€rms out audits on his behalf iompty witt ttre terrns of reference anl of Reference' guidelines issued for the audit. 57. An individual or an audit fimr engaged to undenale audits Aurhoritv on behalfofthe Auditor{eneral shall have full and unfenered access 3tontr""t"a to records, documents, accounts and persons employed by the Audit Firrns. respectiveaudit client. 58. An individual or external audit firm engaged to undertake confidentiatity audits on behalfofthe Auditor4eneral shall obsewe confidentiality obligations imposed by the Audit Service, and the Accountancy and Auditing profession. 59. Subject to section 23 ofthe Act, tbe fees chargeable to the fudit Extemal-Auditor will be professional fees which fairly reflect the ras value ofthe professional services perfomred for the audit client as stipulated in the eng€ement leuer to be signed by the audit client. In charging the fees the Auditor-General shall have regards "?r"fiXll}"*: (a) the outcome ofrisk assessment ofthe public sector body; @) the complexity ofthe audit assignment; (c) tlle need to recruit an expert for the audit assigrunent; (d) the time spent by each penon engaged in performing tbe professional services; (e) the level of staffassigned to the assigment; (f) the urgency with which the audit client requires the results. 6{) to- Paymcnt ofAudit Fees. G) the duation of time spent to perform the audit, including audits of subsidiaries or confimations aJ sub-offices and or out of town branches, as this increases the quatrhm ofwork performed; (h) Any other relevant matters as the Auditor- General may deem fit. 61. (l) The audit client shall pay alt the audit fees in respect of the audit services directly to the extemal auditor (2) The engagement letter signed by the extemal auditor and the audit client before the commencement of an audit, shall indicate the audit fees and the payment terms as agreed. . (3) The external auditor shall issue an invoice for every paJ,,ment due. (4) Where the audit client fails to pay audit fees on deman4 the Auditor-General reserves the right to withhold the audit report until the fees are paid either in full or in part as ttre Auditor- General may determine. (5) For the avoidance of doubt, it is hereby stipulated that $e powers ofthe Auditor-General to cbarge fees to any public sector body for the services rendered shall be exercised in such a way tbat it does not compromise the role, independence and integrity of the Auditor4eneral. 62. (l) Subject to section 24 of the Act, an extemal auditor shall not provide mnsulting services for &e entity or body beyond the scope and objectives of its terms of reference and guidance provided by the Auditor- Auditors. (2) A conaacted individual or extemal audit firm shall not provide consulting services for the ertity or body they are engaged to audit for a period oftwo years following the end ofsuch audir Restrictio s on Extehal C€noral. n (3) In order to enhance the audit quality and to uphold the independence ofthe extemal auditors, the Auditor -General shall rotate firms and the entity or body they are engaged to audit at least every ttrree years. auditor (2) Parliament shall sunuron the Auditor-General or his representative, the Minister of Finance or his representetive to an engagement meeting to ensure compliance with section 4 of the amendment Act to discuss ald deliberate upon its annual budget. 63 The Auditor General shall nol authorise anv external Limitation lo ' Access by (a) to have access to atry books, records, returns, reports or otler docume s, or to enter i1to any premises, or any component of the audited entities listed in the schedule ofthis regulations (schedule ofexcluded entities to be formulated). O) to have access to any books, records, retums, reports or other documents, or to enter upon any prernises other tlan those mentioned in paragraph (a) ifsuch access or entry is likely to- External Auditors (f prejudice the security, defence or international relations of the State or th€ investigation or detection of offences; (f involve the disclosure of any matters or deliberations of a secret or confidential nature of the Cabinet or any sub-committee ofthe Cabinel PARTVI -FINANCE AND ACCOUNIABILITY