Brief Introduction


The Royal Audit Authority (RAA) as the Supreme Audit Institution (SAI) of Bhutan is responsible to audit and report on the economy, efficiency and effectiveness in the use of Public resources as per Article 25.1 of the Constitution of the Kingdom of Bhutan. Appointed by His Majesty the King on recommendation of the Prime Minister, the Chief Justice of Bhutan, the Speaker, the Chairperson of the National Council and the Leader of the Opposition Party, the Auditor General (AG) heads the Supreme Audit Institution for a period of five years or until attaining the age of sixty five years, whichever is earlier.

Four Regional Offices headed by the Assistant Auditors General and the Division Chiefs of the functional Divisions are responsible to conduct audit of Government machineries, Corporations, Financial Institutions, Autonomous Bodies, NGOs, externally funded projects etc., on behalf of the Auditor General. Audit Reports are initially transmitted to the audited entities and the unresolved audit observations (paras) are subsequently incorporated in the Annual Audit Report (AAR) after taking into consideration the response received from the auditee entities. Apart from traditional approach of compliance or regularity audits, the RAA has embarked on conducting performance audit in late 1990s to determine economy, efficiency and effectiveness in the management of public resources.

In June 2006, the 85th Session of the National Assembly enacted the Audit Act of Bhutan 2006, providing RAA with full organizational and functional independence with authority to determine and administer its own organizational structure, budgetary and personal requirements. Since then, the RAA derives it mandates from the Audit Act of Bhutan 2006 and the Constitution of the Kingdom of Bhutan.

The increased complexity of the audit function like integrating compliance audits with performance audits demand qualified and highly specialized manpower. Hence, the RAA accord top priority in strengthening the capacity of the Royal Audit Authority through various measures like short term and long term trainings, in-house trainings, attachment courses etc. Further, the RAA had also introduced the Continuous Professional Development Policy (CPDP) in 2006 where every auditor have to undergo minimum of 40 hours in a year and considered as one of the yardsticks to be eligible for promotion.