Status of the Board
The Board is a constitutionally independent organization to audit the final accounts of the State, accounts of Government Affiliated Institutions and Independent Administrative Agency, and those of bodies which receive financial assistance from the State such as State subsidies.
All the government activities are implemented through the State budget execution.
The State budget is formulated by the Cabinet, deliberated and approved by the Diet and then executed by ministries, agencies and other public bodies.
The final accounts of the expenditures and revenues of the State, which are the results of the State budget execution, are prepared by the Cabinet and deliberated on in the Diet.
For the sound management of administrative and financial operations, it is essential to audit whether the budget has been executed properly and effectively and to ensure that audit results be reflected in the State budget formulation and execution in the following year.
To achieve this purpose, the Constitution provides that “the Final accounts of the expenditures and revenues of the State shall be audited annually by a Board of Audit and submitted by the Cabinet to the Diet, together with statement of audit, during the fiscal year immediately following the period covered.”
Besides, the statements of State Properties, State Credits, and State Liabilities are also audited by the Board. Furthermore, accounts of State-financed bodies and local public entities which receive financial assistance from the State are subject to the Board’s audit.
The Board is a constitutional organization which enjoys independence of the Cabinet and belongs neither to the Diet nor to Courts for strictly performing such important functions without any interference by any other bodies.
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