Powers of the Organization and Performance of its Functions

ARTICLE (11):
COCA performs its functions according to the circumstances, through audit, examination, verification, and physical inspection and in doing this, it has the following powers:-

• To inspect all records, accounts and supporting documents wherever they exist or in the organization office .
  and it has the right to inspect any other records, documents, reports, minutes or other, papers it thinks that they are relevant to the performance of its duties and it has the right to keep a copy or a photocopy wherever it thinks necessary.
  the relevant by–law of this act will determine methods of inspection of records and documents which its circulation is prohibited.
• The organization has the right to receive any relevant information and explanations necessary for the performance of its duties from the present and previous responsible officials in the units subject to the audit or other related units. and in doing this , the organization has the following rights :-
  • To question and seek explanations from the relevant people and insist on a hand written replies.
  • Exceptionally and through the responsible minister or governor, the organization may require the attendance of the responsible official to the organization office to give any information or explanations, but the request for attendance must be justified.
• The organization has the right for direct contact with all responsible officials of the different bodies subject to the control of the organization. Both previous and present officials and third parties who are involved in the subject matter being considered.
  This covers the ministries of finance and civil service representatives and similar officials in the administrative organization units.
  Also the organization reserves the right of corresponding with them and performing surprise check on their activities.
• Performing its duties, the organization may use sampling techniques or it may perform comprehensive audit depending on the circumstances.
• Addition to the normal audit and inspection procedure, the organization has the right to perform surprise audit without giving pre-notice.
• The organization has the right to use sealing wax when this procedure is needed as a precautionary decision. Its opening should be minuted and attended by a committee nominated by the president.
  the shape and size of this seal is determined by the president decision.
• When the organization discovers any action prohibited by law or damaging to the public interest, it has the right to seize documents and write a detailed report to the management of the body concerned on the subject matter - explaining the appropriate legal procedure which should be taken. Within thirty days from receiving the report if the concerned body did not respond, the organization has the right to transfer the relevant document to the legal authorities.
  the only exception to this rule, is when the prohibited actions are committed by ministers, deputy ministers or governors where the report will be submitted to the president of the presidential council to decide upon it.
• For the purpose of providing evidence on any financial and managerial breach, or criminal offenses damaging to the public interest, the members of the organization who were selected in accordance to the provisions of the by – laws of this act will enjoy the judicial control capacity.
• The organization has the right to join in the stock- taking activities of the bodies subjected to it, s control. whether this stock- taking took place at the end of the accounting year or during the year according to the relevant legislation and regulation.
  also the organization has the right to perform surprise stock count, cash count and fixed assets inspections or any other assets.
• The organization is responsible for auditing and inspection of the public sector units and quasi-government where the state holdings in these units are more than 50% of its capital.
  The organization will also form an audit opinion on its financial statements.
  Also the organization may seek assistance of the private audit practice- who has practicing licenses in Yemen.
• For the purpose of the above, the organization has the power to appoint the private auditors and fix their audit fees.
  Also the organization will exercise supervision over their work, amend their audit programs if required, examine their working papers, discuss and evaluate their findings and approve the financial statement audited by them.
• Where the state holding in the quasi-government units is less than 50% the organization reserves the right to object on the appointment of the private auditors.
  Also their audit programs, their fees, should be agreed with the organization. a copy of the audited financial statements should be submitted to the organization two months before the general meeting for review and reporting. Also the organization, if it wishes, has the right to attend the general meeting to observe and make clear any reservations it has on the report.
• The provisions in paragraph (10,11) are applicable to the quasi- government unit if a written request was made by the general assembly of these units to the organization
• The organization will review the financial statements prepared by private auditors and it has the right to accept, complete any incomplete process or extend audit procedure or to demand further audit work from them .for this purpose, the organization has the right to receive the information and explanation required from the auditor or from the units audited under the provisions of this act
• If the organization finds out that the poor performance is the result of inadequacy or lack of regulations or sound systems, or unclear working instructions or bad planning or incompetent employees, it has the right to ask for review, improvement and amendments of these regulations, systems and plans.
• For the purpose of obtaining relevant and reliable audit evidence to form its audit opinions, the organization has the right to communicate and seek technical assistance from different sources of skill and knowledge and from experts in professional, technical and academic fields.
• The organization has the right to identify the officials who are responsible for any breach of duties and identify the extent of this responsibility from its findings and its primary investigation and functions performed by them.
• The organization can perform continuous and pre- audit activities in addition to past- audit activities.
  
  ARTICLE (12):
  
  • The President makes decisions as regards the organization , development and improvement of activities with special emphasis on the followings:-
    • Develop audit procedures and audit techniques to be used in performance of different audit activities through all different audit processes.
    • Adopting professional standards are necessary for performing audit activities especially in areas of audit planning, audit control and preparation of audit report.
    • Adopting professional standards which secure independence and objectivity in the audit work.
    • Adopting suitable and appropriate recruitment and training policies to ensure efficiency in audit work.
    • Establish a quality control procedure which ensures the validity of all evaluations and conclusions reached, which are supported by adequate evidence to form an audit opinion and in a way which will secure the accuracy and validity of quality results reported, so that it can be of some help to users.
    
    ARTICLE (13) :
    • The organization prepares audit reports on the outcome of the audit inspection and verifications. The reports will be submitted to the management of the units subject to the control of the organization and any other authorized parties. These reports will include the organization observations, suggestions and recommendations.
    • The organization prepares an audit report on the outcomes of auditing the financial statements of the economic units, co – operative units and subsidized units. This report will be submitted to the concerned bodies and it will include the organization opinion on whether the financial statements represent the true financial position of the unit and the outcomes of its operations. it will also include the reservations the organization has.
    • The organization prepares a report on the outcomes of performance evaluations of bodies subject to its control. The report will identify weak and problem areas and state suggestions and recommendations for improvement.
    • The organization prepares a report on the results of auditing the final accounts of the budgets of units subject to its control.
    • The organization prepares annual report on the results of studying the final accounts of the state budget, other supplementary or independent budgets.
      The report will be submitted to the presidential council, the parliament and the cabinet, with a copy to be sent to the concerned parties, within not more than three months of receiving the final accounts from the ministry of finance.
    • The organization prepares periodical reports on the outcomes of its audit activities.
      This will be submitted to the president of the presidential council, with copies to be sent to the cabinet and parliament.
    • he organization will prepare any reports required by the presidential council.
    • The organization prepares any reports it considered important on any relevant subject and submits it to the presidential council and other concerned parties.