The Audit Process

How are the subjects of audit chosen? 

The Office of the State Comptroller and Ombudsman works in accordance with a triennial work plan which determines which bodies and which subjects will be audited - however, this plan is subject to changes as necessary. Thus, for example, as Swords of Iron War started, the State Comptroller decided that the work plan planned for 2024 will be updated so that the audit divisions will focus on a comprehensive review of the war.   
Main criteria according to which audit subjects are selected: 

  • The level of importance and public interest in the subject. 
  • Its Financial Significance.
  • The ability of the audited body to examine itself. 
  • The number of complaints received on a certain subject.
  • Information published on the media or brought to the attention of the State Comptroller in some other way. 
State Comptroller Englman in his office in Jerusalem

When does the audit take place?

State audit usually reviews incidents after they have been completed, however, sometime it reviews issues that are in the public interest in real time or as close as possible to the time of occurrence. Under adverse circumstances, when in the course of the audit it is evident that a certain action by an audited body might cause serious damage, the State Comptroller warns against it even prior to audit completion - in order to prevent potential damage. 
When appropriate, following a thorough review and consideration, the State Comptroller might indicate in the report - names of officials in the auditees and even hold them personally accountable.

The Complete Audit Process

Audit Planning

As aforesaid, the Office of the State Comptroller acts in accordance with a triennial audit plan. The triennial planning process allows for on-going thinking and helps focusing the audit work.  
At the first stage, the divisions suggest the subjects to be audited in the next three years.  

  • Subjects to be Audited in the course of the Work Year: the audit is conducted in the course of this year and published at the end of the year.  

  • Subjects to be Audited in the course of the Second Year (surveys): will serve as the basis for audit tasks in the following year or years. At the survey stage, the audit teams deepen their knowledge of the subject of the survey.

    Subjects to be Audited in the course of the Third Year (R&D): initial information should be gathered and the subjects should be studied as early as the first year in order to check the level of feasibility of an audit (this stage is called R&D). 

  • In accordance with the State Comptroller's policy, 20% of audit reports published every year are follow-up audit reports. During follow-up audits, the State Comptroller checks how the audited bodies have handled the flaws that were found in the course of the original audits.   

The triennial audit plan is approved every year by the State Comptroller. 
 

Consolidating findings, conclusions and recommendations and writing the audit report    

The field work starts once the State Comptroller approves the triennial plan.  In the course of the field work, the audit teams meet with the audited officials, decide on the relevant norms for the audit, collect audit evidence through the relevant audit tools and consolidate the audit's findings, conclusions and recommendations.

In the course of the audit process, which lasts for 14 months, the audit teams update the State Comptroller on the audit status and the findings that were consolidated and receive guidelines for the rest of the audit from the State Comptroller. 

During the field work, the audit teams consolidate the first draft of the audit report. 
The draft is sent to consultants' review (legal advice and linguistic editing) and State Comptroller approval. A draft report approved by the State Comptroller is called a "petition" and is sent to the audited bodies so that they can relate to the specified findings, conclusions and recommendations and thus will be able to exercise the right of argument and respond to the draft.

The audit teams receive the response of the audited bodies and examine it open mindedly - and as needed, integrate the comments of the audited bodies in the petition.    
A petition that includes audited bodies' comments is called a "SCF proposal" (State Comptroller File).  

The SCF proposal is submitted to the supervision officials and the State Comptroller for approval. Improvements and noteworthy actions taken by the audited bodies are also indicated by the State Comptroller in his reports.     

All of the State Comptroller's annual reports are submitted to the prime minister and to the chair of the State Control Committee of the Knesset in a process called "Service". Ten weeks later, the report is submitted to the Knesset together with the “book of prime minister's comments on the State Comptroller report”.  On the same day, the report is also publicly published.  

The ombudsman's report, the annual audit report on local government and the special reports are not submitted to the prime minister - they are submitted to the Knesset and are made available for the public. 

Flaws Rectification 

As aforesaid, the annual report, which is divided into several publications every year, is submitted by the State Comptroller to the prime minister and to chair of the State Control Committee of the Knesset about 10 weeks prior to its submission to the Knesset and the public. 

At the same time, the inspector general at the Prime Minister Office sends the government ministries and the auxiliary units under them a chart specifying the flaws that were found and recommendations for rectification of flaws.  

By the time the report is published, the audited bodies are requested to submit to the inspector general their initial comments on the flaws and recommendations.  

The State Comptroller sends the report, the chart specifying the flaws and guidelines for response to all audited bodies about a week before the publication of the report.    

  • Within 60 days from report publication, all audited bodies are required to form a team, headed by the CEO or a parallel official, in order to discuss the flaws and recommendations.    
  • Within 105 days from report publication, the head of the audited body is required to report to the State Comptroller on the decisions that were made and the time frame for flaws rectification.   If the audited body thinks that there is no need to rectify a certain flaw, it must specify the reasons.  The State Comptroller is authorized to demand from the audited bodies additional updates on the actions they take in order to rectify the flaws. 
  • Within eight months from report publication, the law requires that the prime minister reports to the State Comptroller on the actions taken in order to rectify the flaws in the bodies that are under him.     
  • From time to time, the State Comptroller checks the rectification of flaws through follow-up audits and shares the process of rectification with the public.