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Board of Audit and Inspection Establishes 'Public Financial Accounting Audit Bureau'... "Strengthening Inspection of Subsidy Misuse"

Create a New Digital Audit Bureau

The Board of Audit and Inspection (BAI) is establishing a new 'Public Finance Accounting Audit Bureau' to prevent financial leakage and strengthen inspections of fraudulent public financial expenditures such as subsidies. Additionally, a new 'Digital Audit Bureau' has been created to assess preparedness against cyber threats, including national digital innovation policies and potential paralysis of the national computer network. This reorganization marks the second since the organizational restructuring conducted in June 2022, shortly after the inauguration of the Yoon Suk-yeol administration.


On the 19th, the BAI announced through its reorganization plan that "the restructuring was carried out to respond to new audit demands such as monitoring financial leakage, checking digital innovation, and enhancing citizens' rights and interests."


First, the accounting audit function to support the efficient operation of national finances will be significantly strengthened. A new 'Public Finance Accounting Audit Bureau' has been established to take charge of monitoring fraudulent expenditures and accounting irregularities in public finances, including subsidies, as well as conducting settlement audits of national and public institutions. The bureau plans to analyze suspected cases of financial leakage using the BAI’s data analysis system (BARON), conduct on-site inspections, and reinforce settlement audit functions.


A 'Digital Audit Department' diagnosing risk factors in national digital innovation will also be newly established. This department will play a role in inspecting cyber threat preparedness such as national computer network paralysis and personal information leaks, as well as policies related to informatization projects, data sharing, and openness under the digital platform government. The BAI has created a specialized audit bureau called the 'Digital Audit Bureau' within the Public Service Inspection Headquarters to conduct in-depth inspections and block risk factors hindering national digital innovation. This bureau is an expanded reorganization of the existing 'Digital Audit Support Officer,' integrating audit and data analysis functions.


To strengthen support for proactive administration, the existing Public Audit Support Bureau has been reorganized into the 'Proactive Administration Public Audit Support Officer.' The pre-consultation function, which is highly effective in preventing passive administration, will be enhanced, and the scope of pre-consultation applications, previously limited to ministries, local governments, and public institutions, will be expanded to include companies and stakeholders to increase on-site responsiveness.


Efforts are also being made to reinforce the dedicated organization for audit requests directly related to protecting citizens' rights and interests. As audit requests surged from only 143 cases in 2016 to 183 cases in 2022, a new division has been added to the 'Citizen Proposal Audit Bureau 1,' the organization responsible for handling requests promptly. The BAI stated, "This reorganization aims to prevent financial leakage and respond to new audit demands in line with the digital age."

Board of Audit and Inspection Establishes 'Public Financial Accounting Audit Bureau'... "Strengthening Inspection of Subsidy Misuse" [Image source=Yonhap News]


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