Audit is an effective instrument in reflecting the new democratic system by ensuring proper accountability in the various federal government offices and organizations within the state structure.
It is necessary to ascertain that the financial management of the federal government offices and organizations in various developmental and administrative activities follow proper accounting procedures, that the manner of revenue collection, fund disbursement and property management is in accordance with government rules and regulations, and that their plan and program are carried out and regulations, and that their plan and program are carried out efficiently and economically with a view to attaining their objectives.
It is also necessary that the government of the Federal Democratic Republic of Ethiopia economic policy be supported by a modern and reliable audit system in order to ascertain proper implementation through effective monitoring of administrative, developmental and service rendering institutions in the federal public sector.
In order to realize the objectives of the aforementioned it has been shown in the recently undertaken Business Processing Re-engineering activity that it is necessary to further strengthening and improving the professional independence and competency of the Auditor General and the Office of the Federal Auditor General.
The Office shall have the following objectives:
strengthen the audit system required for a reliable information necessary for the proper management and administration of the plans and budget of the federal government;
ascertain that all money and property of the federal government are collected, preserved and used properly, in accordance with the laws and regulations of the federal government and report the same to the House:
undertake a financial, performance, environmental protection, control audit, special audit and other audits of the offices and organizations of the federal government;
make efforts, in cooperation with concerned organs, to develop and strengthen accounting and audit profession;
give professional assistance and advice to Regional and Federal Civil servants and organizations engaged in accounting and audit professions;
draw up a standard of auditing by which accounts of the offices and organizations of the federal government shall be examined and follow up the implementation of the same.