The Supreme Audit Office performs financial audits, performance audits, and other specific audits in accordance with the law.
The financial audit includes the audit of financial statements and the audit of compliance, which means that the Supreme Audit Office when performing the financial audit in accordance with the adopted audit standards will:
- determine whether the audited financial statements truthfully and objectively, in all materially significant aspects, show the financial condition of assets and resources, business performance, cash flows, and budget execution, in accordance with the prescribed financial reporting framework and
- assess whether regulations are applied and whether funds are used for appropriate purposes and evaluate financial management, the internal audit function, and the system of internal controls.
Performance audit is an activity of the Supreme Audit Office, which includes the examination of activities, programs, and projects under the jurisdiction of the Government of the Republic of Srpska and public sector institutions in terms of economy, efficiency, and effectiveness.
The National Assembly or the Audit Committee of the National Assembly may require the Supreme Audit Office to perform a special audit, for which it is necessary to provide special funds. The Supreme Audit Office can perform a special audit at the request of the Government of the Republic of Srpska, with the consent of the Audit Committee of the National Assembly.
The Supreme Audit Office is authorized and obliged to annually audit financial reports and compliance of activities, transactions, and information with legal and other regulations and execution of the budget of the National Assembly of the Republic of Srpska, the Office of the President of the Republic of Srpska, the General Secretariat of the Government of the Republic of Srpska and ministries, the Council of Peoples of the Republic of Srpska, Tax Administration of the Republic of Srpska, Pension and Disability Insurance Fund of the Republic of Srpska, Health Insurance Fund of the Republic of Srpska, Public Fund for Child Protection of the Republic of Srpska, Employment Office of the Republic of Srpska, Consolidated Annual Financial Report for Budget Users of the Republic of Srpska, adequate number of units of local self-government and public companies and other institutions and entities in accordance with the Annual Audit Plan.
In addition, the Supreme Audit Office is authorized to audit public institutions, public and other companies in which the Republic has a direct or indirect ownership stake, any funds provided to any institution for the implementation of projects by international organizations, as a loan or donation for the Republic, funds allocated from the budget to the institution, that is, the organization and all other budgetary institutions that are financed from the budget and funds and other extra-budgetary funds established by law.
The powers of the Supreme Audit Office include all financial, administrative, and other activities, programs, and projects managed by one or more institutions, including the procedure and revenues from property sales, privatizations, and concessions.
The frequency of financial audits of local self-government units, public companies, and other institutions and entities is determined by the Supreme Audit Office on the basis of risk assessment, the financial importance of the audited entities, the results of the previous audit, collected information on the operations of the audited entities and the assessment of the real capacities of the Main Audit Service for conducting such audits during one fiscal year.