Central Organization Control and Accountability Act No.

39 (1992)
See [http://www.coca.gov.ye/index.php?lang=2&PHPSESSID=1eec351b3a27d3c8317a29bb987f66fa]

The Central Organization for Control and Auditing aims to:

Maintain effective control over public resources to ensure efficient, economical and effective utilization management. Contribute in developing Performance auditing and the accounting and auditing profession of auditees. Provide the President of the Republic, the Parliament and other users with the most important and appropriate information through issuance of independent, objective, and reliable audit reports on the basis of generally accepted accounting and auditing and auditing principles and standards.

Powers of the Organization and Performance of its Functions ARTICLE (11): COCA performs its functions according to the circumstances, through audit, examination, verification, and physical inspection and in doing this, it has the following powers:

To inspect all records, accounts and supporting documents wherever they exist or in the organization office . and it has the right to inspect any other records, documents, reports, minutes or other, papers it thinks that they are relevant to the performance of its duties and it has the right to keep a copy or a photocopy wherever it thinks necessary. the relevant bylaw of this act will determine methods of inspection of records and documents which its circulation is prohibited. The organization has the right to receive any relevant information and explanations necessary for the performance of its duties from the present and previous responsible officials in the units subject to the audit or other related units. and in doing this , the organization has the following rights :o To question and seek explanations from the relevant people and insist on a hand written replies. o Exceptionally and through the responsible minister or governor, the organization may require the attendance of the responsible official to the organization office to give any information or explanations, but the request for attendance must be justified. The organization has the right for direct contact with all responsible officials of the different bodies subject to the control of the organization. Both previous and present officials and third parties who are involved in the subject matter being

considered. This covers the ministries of finance and civil service representatives and similar officials in the administrative organization units. Also the organization reserves the right of corresponding with them and performing surprise check on their activities. Performing its duties, the organization may use sampling techniques or it may perform comprehensive audit depending on the circumstances. Addition to the normal audit and inspection procedure, the organization has the right to perform surprise audit without giving pre-notice. The organization has the right to use sealing wax when this procedure is needed as a precautionary decision. Its opening should be minuted and attended by a committee nominated by the president. the shape and size of this seal is determined by the president decision. When the organization discovers any action prohibited by law or damaging to the public interest, it has the right to seize documents and write a detailed report to the management of the body concerned on the subject matter - explaining the appropriate legal procedure which should be taken. Within thirty days from receiving the report if the concerned body did not respond, the organization has the right to transfer the relevant document to the legal authorities. the only exception to this rule, is when the prohibited actions are committed by ministers, deputy ministers or governors where the report will be submitted to the president of the presidential council to decide upon it. For the purpose of providing evidence on any financial and managerial breach, or criminal offenses damaging to the public interest, the members of the organization who were selected in accordance to the provisions of the by laws of this act will enjoy the judicial control capacity. The organization has the right to join in the stock- taking activities of the bodies subjected to it, s control. whether this stock- taking took place at the end of the accounting year or during the year according to the relevant legislation and regulation. also the organization has the right to perform surprise stock count, cash count and fixed assets inspections or any other assets. The organization is responsible for auditing and inspection of the public sector units and quasi-government where the state holdings in these units are more than 50% of its capital. The organization will also form an audit opinion on its financial statements. Also the organization may seek assistance of the private audit practice- who has practicing licenses in Yemen. For the purpose of the above, the organization has the power to appoint the private auditors and fix their audit fees. Also the organization will exercise supervision over their work, amend their audit programs if required, examine their working papers, discuss and evaluate their findings and approve the financial statement audited by them. Where the state holding in the quasi-government units is less than 50% the organization reserves the right to object on the appointment of the private auditors.

Also their audit programs, their fees, should be agreed with the organization. a copy of the audited financial statements should be submitted to the organization two months before the general meeting for review and reporting. Also the organization, if it wishes, has the right to attend the general meeting to observe and make clear any reservations it has on the report. The provisions in paragraph (10,11) are applicable to the quasi- government unit if a written request was made by the general assembly of these units to the organization The organization will review the financial statements prepared by private auditors and it has the right to accept, complete any incomplete process or extend audit procedure or to demand further audit work from them .for this purpose, the organization has the right to receive the information and explanation required from the auditor or from the units audited under the provisions of this act If the organization finds out that the poor performance is the result of inadequacy or lack of regulations or sound systems, or unclear working instructions or bad planning or incompetent employees, it has the right to ask for review, improvement and amendments of these regulations, systems and plans. For the purpose of obtaining relevant and reliable audit evidence to form its audit opinions, the organization has the right to communicate and seek technical assistance from different sources of skill and knowledge and from experts in professional, technical and academic fields. The organization has the right to identify the officials who are responsible for any breach of duties and identify the extent of this responsibility from its findings and its primary investigation and functions performed by them. The organization can perform continuous and pre- audit activities in addition to past- audit activities. ARTICLE (12): o The President makes decisions as regards the organization , development and improvement of activities with special emphasis on the followings: Develop audit procedures and audit techniques to be used in performance of different audit activities through all different audit processes. Adopting professional standards are necessary for performing audit activities especially in areas of audit planning, audit control and preparation of audit report. Adopting professional standards which secure independence and objectivity in the audit work. Adopting suitable and appropriate recruitment and training policies to ensure efficiency in audit work. Establish a quality control procedure which ensures the validity of all evaluations and conclusions reached, which are supported by adequate evidence to form an audit opinion and in a way which will secure the accuracy and validity of quality results reported, so that it can be of some help to users.

ARTICLE (13) :

The organization prepares audit reports on the outcome of the audit inspection and verifications. The reports will be submitted to the management of the units subject to the control of the organization and any other authorized parties. These reports will include the organization observations, suggestions and recommendations. The organization prepares an audit report on the outcomes of auditing the financial statements of the economic units, co operative units and subsidized units. This report will be submitted to the concerned bodies and it will include the organization opinion on whether the financial statements represent the true financial position of the unit and the outcomes of its operations. it will also include the reservations the organization has. The organization prepares a report on the outcomes of performance evaluations of bodies subject to its control. The report will identify weak and problem areas and state suggestions and recommendations for improvement. The organization prepares a report on the results of auditing the final accounts of the budgets of units subject to its control. The organization prepares annual report on the results of studying the final accounts of the state budget, other supplementary or independent budgets. The report will be submitted to the presidential council, the parliament and the cabinet, with a copy to be sent to the concerned parties, within not more than three months of receiving the final accounts from the ministry of finance. The organization prepares periodical reports on the outcomes of its audit activities. This will be submitted to the president of the presidential council, with copies to be sent to the cabinet and parliament. he organization will prepare any reports required by the presidential council. The organization prepares any reports it considered important on any relevant subject and submits it to the presidential council and other concerned parties.

COCA Organizational Structure: 1. the managing body of coca consists of the president, vice president, some deputies, central departmental managers, general departmental managers and a sufficient number of technical members the executive regulations determine the main sectors and the subordinate ones of the organization structure of coca. 2. the president is appointed as a minister by a republican decree from the presidential council. 3. Vice president is appointed by a republican decree from the presidential council, upon the recommendation of the president as deputy minister . 4. President Deputies are appointed by a republican decree from the presidential council upon the recommendations of the president, as p deputies. 5. Central Departments managers are appointed by a republican decree from the presidential council upon the recommendations of the president, as assistant deputy. 6. Technical members appointment should be in accordance with a system approved by a decision from the president . A technical member must hold a university degree in the field of subjects related to coca work . 7. The executive regulations set the rules to be followed in punishment of the technical members wherever needs be. 8. The president shall : have the technical, administrative and financial supervision on coca affairs, activities and staff, take the necessary decisions or decrees to regulate and administer its work and activities, represent coca before court of justice and its relations with other parties. 9. In addition to the allowances approved by laws, decisions and effective regulations in the republic, coca staff is entitled to (50%) of the basic salary as control allowance and (35%) of the basic salary as house / office transport allowance . The classes of the staff who enjoy those allowances will be determined by the president decision.

An Overview: Central Organization for Control and Auditing (COCA) Country: The Republic of Yemen. Foundation of COCA: COCA is founded as Supreme Audit Institution with an independent considerable identity according to the Act No.45 for the year 1974 issued in Sana'a, in addition to the Act No.11 for the year 1972 issued in Aden. Moreover, the two SAIs ( in Sana'a, and Aden ) integrated as one SAI in 1990 after the Unification of the south and north of Yemen. To become the COCA in framework of Act No.(39)for the year 1992. The headquarter of COCA located in Sana'a, the Capital of the Republic of Yemen, and it includes (20) branches in the other Governorates. COCA is followed by the Presidential Office of the Republic. COCA Sectors: 1. 2. 3. 4. Administrative Audit Sector. Economic Audit Sector. Administrative Units Audit Sector. Financial, Administrative and Technical Affairs Sector.

The current Act governs COCA:

The Presidential Act No. 39 for the year 1992. Executive Regulations By-laws of COCA's Law. issued by Presidential Council No. (2) for the year 1993. Group of Systems and Regulations issued to organize and manage COCA works, they are as below: The System of Sub-contracting Service of the Chartered Accountants/Private Auditing Firms. System of Professional remunerations. Regulation of Country/Local and Abroad Training. Regulation of Social Care Funds for COCA Members. System of Periodical Incentives. Judiciary Control Guidelines.

The Main Subject Areas in COCA: Accounting, Administration, Economy, Law, Computer, Statistics, Engineering etc. COCA Staff Composition: (1986) employees (including Technical Members)

The Official meetings held by COCA: 1. The Annual Conference Leadership of COCA in the headquarter and COCA branches in governorates for the following aims: o Evaluation of COCA works during the last fiscal year in all different aspects of performance, especially in the field of implementation the Annual Plan for audit works in the headquarter and branches . As well as, defining the deviations if existed and finding out the necessary remedies to avoid it in future. o Evaluation of COCA Performance during the past year. o Evaluation of the strategies and policies of COCA appropriately as per the instructions of His Excellency, the President of the Republic. o Discussion of the working papers received from the Sectors for the purpose of building more effectiveness. o Studying any professional, financial and administrative problems or difficulties may face COCA. o Discussion and approval of COCA Overall Plan for the forthcoming year and a decree to be issued by COCA President regarding the implementation of the plan.

2. The advisory meeting with the Judiciary Authority: The relationship between COCA and the Judiciary Authority Public Funds Prosecution and Courts gets a great importance since they are working for a common objective which is to protect the public funds and properties. Therefore, COCA leaders and Justice have organized such a relation through the advisory meeting, six meetings have been held during 1996-2005. Through these meetings COCA and Judiciary Authority have displayed their activities and they become able to solve many problems and obstacles occurred. This meeting contributes to find out a common language between them to consider the public funds issues. As a result of these meetings, a number of training programs have been conducted for COCA members in the fields of legal and judiciary control and for the Judiciary Authority in the field of accounting and auditing that may lead to common understanding of duties and functions of each institution. It, also, helps to integrate the database of public funds issues. As result, a committee has been established to prepare an automatic system through informative program which assists for data- sharing and information easily and a network connection through internet is in progress. These meetings are in continuous basis annually , the 7th advisory meeting is under preparation during the forthcoming two months , this meeting will be devoted to evaluate that relationship path and to identify the role of each institution in anti-corruption under the umbrella of current innovations, the election program of His Excellency President of the Republic and the government

program which all assures the necessity of anti-corruption and to activate the mechanisms which will be integrated in the anti-corruption process. COCA, the Public Finance Prosecution and Courts, and the National Authority of Anticorruption will carry out the great load of responsibility and working together with the other concerned parties and NGOS since all of they are stakeholders in Anti-Corruption. COCA Applicable Audit Manual: Beside the international Audit Standards (IAS) COCA has its own Methodology called Comprehensive Audit Manual (CAM) along with its Guidelines which assist auditors on their duties easily.