The Board is a constitutionally independent organization which audits the final accounts of the revenues and expenditures of the State, accounts of government affiliated institutions and incorporated administrative agencies, and those of bodies which receive financial assistance from the State such as subsidies.

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 revenues and expenditures of the State, which are the results of the State budget execution, are prepared by the Cabinet and deliberated on in the Diet.

For sound management of administrative and financial operations of the State, 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 revenues and expenditures of the State shall be audited annually by the Board of Audit and submitted by the Cabinet to the Diet, together with the audit report, during the fiscal year immediately following the period covered.

In addition, the accounts of national properties, claims held by the State and State obligations are also audited by the Board. Furthermore, accounts of entities whose stated capital has been contributed by the State and local public entities which receive financial assistance from the State are also subject to the Board’s audit.

The Board is a constitutional organization which is independent of the Cabinet and belongs to neither the Diet nor the Courts for the purpose of strictly performing such important functions without any interference by any other bodies.