THE ROLE OF THE_ SUPEREME AUDIT INSTITUTIONS IN AUDITING THE PERIVATIZATION PROCESS THE CASE OF THE GENERAL AUDITING CHAMBER OF A SUDAN

Abstract

Abstract This study focuses on the role of the Supreme Audit Institutions, the case of the General Auditing Chamber of Sudan, in the privatization programme. To gauge this role tlle study attempts to seek answers to the following questions: 1-Is the General Auditing Chamber (GAC) involved ill the audit of the privatization process? 2-Has the General Auditing Chamber specialties and skills required to carry out the privatization audit? 3-Does the General Auditing Chamber consider the privatization programme as a government policy matter which is not subject to their audit? 4-Is the shortage of the General Auditing Chamber's staff a detriment to the Chamber to cover the privatization audit? These questions have been further formulated into integrated hypotheses. To answer these questions and test these hypotheses, an exploratory and analytical methodology has been used. The study reveals that the GAC as a body conferred to oversee and monitor the handling of public money is not involved independently in the privatization process, at least by auditing the process. lt is found that some of the senior staff in the Chamber are not aware whether the GAC has a role to play in privatization process or not. The sole reason that makes the GAC not to independently be involved in the privatization process is that privatization is considered as a government policy matter which is outside the Chamber audit jurisdiction. There is misundcrslanding and misconceptions of the terminologies such as "policy matter" as a result, has contributed to hindrance of the Chamber to conduct its duties

properly. Additionally, there is no direct stipulation for the role of the GAC in privatization process. The study has found that there is some political intervention in privatization process culminating in some irregularities. lt is found that some aspects of privatization could easily be carried out by the GAC staff, especially those of accounting nature without resorting to any outside specialist. As to the required specialty and skills to carry out privatization audit, it is found out that the GAC lacks these skills and specialties. There are only individual efforts to acquire these skills within the Chamber staff. That is to say, there is no formal training of the staff to acquire the necessary skills for conducting challenging issues, nor does the GAC have tendency to recnlit heterogeneous specialists to help conduct the non-accounting tasks entrusted to the Chamber. Despite the lack of requirements of the privatization audit in the GAC in respect to ability, specialty and skills, yet staff employed by the Chamber poses another obstacle. There is an acute shortage of the staff’ of the GAC not only to carry out the privatization audit but even to conduct the other functions vested to GAC to perform. The contributions and additions this study has made to knowledge are as mentioned below. This research is believed to have several characteristics that qualify it to be regarded as an outstanding contribution amongst the presently conducted accounting researches in Sudan in the area ol‘ privatization auditing, particularly those related to public audit institution in Sudan. The first significant characteristic of this research is that it is the only outstanding empirical research run, so l'ar, about the practice and theoretical knowledge of the public audit institution (General Auditing

Chamber) in the Sudan relating to privatization audit. To the best of my knowledge no research has covered this topic. Tlle second characteristic of this study compared to the other studies in this area in Sudan, is its comprehensive descriptive coverage and explanation of the experience of the General Auditing Chamber in Sudan, a thing which had never been focused on before by the previous studies ( in the Sudan) to the best of my knowledge. The third characteristic of this study is that it highlights the extent of the conceptual understanding and practical experience of the public auditors in the Sudan in regard to the privatization auditing. The silence of the Constitution and law to mandate or grant for the public audit institution ( General Auditing Chamber) to conduct privatization auditing has made the GAC to be complacent in this respect. The fourth most important characteristic of this study is its recognition of the importance and necessity of demonstration and presentation of privatization auditing guidelines for the public and private auditors in Sudan to bridge the gap of the unavailable standards and guidelines for conducting privatization auditing. This contribution is expected to help auditors in getting the necessary body of knowledge on privatization auditing to enable them have sound and adequate foundation for conducting efficient and effective privatization auditing. The study has been concluded with a number of recommendations pertinent to the research area and areas for further studies.