Objectives of Audit
(1) Supervision of the public accounting
The Board audits and supervises public accounting constantly to ensure its adequacy and to rectify its defects.
When the Board finds cases of improper or unreasonable financial transactions in the course of its audit, the Board not only points out these improper cases, but also performs a positive function of facilitating their rectification and improvements by identifying the cause of such improprieties.
For this reason, the Board is given powers to present its opinions or demand the auditees to take improvement measures on matters it deems to be in violation of laws and regulations or to be improper concerning financial transactions, or necessary to be improved with regard to laws and regulations, systems on administration.
(2) Verification of the final accounts of the expenditures and revenues of the State
Verifying the final accounts of the expenditures and revenues of the State is another objective of audit by the Board. The Board has a duty to verify it based on the results of audit.
Verification of the final accounts of the expenditures and revenues of the State means to declare completion of the audit after determining the accuracy of the statements and the adequacy of the State accounting.
The Constitution stipulates that the final accounts of the expenditure and revenues of the State shall be submitted by the Cabinet to the Diet together with the Audit Report of the Board, Thus, an official declaration of completion of the audit by the Board enables the submission of the final accounts of the expenditure and revenue of the State by the Cabinet to the Diet.
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