The Swedish NAO is one of the bodies charged with exercising the powers of scrutiny vested in the Swedish Parliament. Our task is to audit state administration so as to contribute to the economic use of resources, and to effective and efficient administration.
One important role of the Swedish NAO is to ensure democratic transparency, i. e. provide citizens with the opportunity to see how democratic decisions are made and implemented, how their tax money is used, and whether public administration follows directives, rules and regulations and achieves the objectives set for it.
The Swedish Parliament and the Government are the most important recipients of the findings from our audits. The audits are used to support decisions, for purposes of accountability and informed public discussion.
How the Swedish NAO audits the State
Because the Swedish NAO is one of the bodies exercising the power of scrutiny vested in the Swedish Parliament, the independence of its auditing operations is laid down in the Constitution and its audit mandate is powerful. This enables the Swedish NAO to carry out a coherent and comprehensive programme of audits encompassing public administration as a whole.
Financial audits cover more than 250 agencies. The Swedish NAO also appoints auditors for about 40 state-owned enterprises and about 20 foundations. About 30 performance audits are carried out each year, and the main observations made in the overall auditing operations are reported in the Swedish NAO Annual Report. Each year the Auditors General present an audit plan which describes the overall focus of the audits to be performed during the coming year as well as the considerations and priorities underpinning these audits.
The starting-point of audit planning is the Swedish NAO’s task of auditing public administration. Assessments relating to risk and materiality determine our decisions on the focus of both financial and performance audits.
How audit findings are presented
Financial audit assessments are presented in auditor’s reports or auditor’s certificates and, when necessary, in special auditor’s reports or audit memoranda. The auditor’s reports and auditor’s certificates are submitted to the Government except as regards the agencies with the Swedish Parliament as principal.
The auditor’s report on the annual report of the Swedish State is submitted to the Swedish Parliament and the government by the Auditor General responsible.
Financial audits are submitted bi-annually. Its auditor’s reports are submitted at the end of March. The next reporting period is at the beginning of September, when we submit auditor’s certificates relating to the interim statements of the agencies.
The findings of a performance audit are presented in an audit report. Once the Auditor General responsible has approved the report, it is submitted to the Government except as regards the agencies with the Swedish Parliament as principal. On submission, the report enters the public domain and is published on the website.
After the audit
Audit reports are also submitted to the board of the Swedish NAO which proposes, without any restrictions, for the Swedish Parliament if and in such cases, what policy decisions the Swedish Parliament may need to make in connection with the conclusions and recommendations presented by the Auditor General.
The Swedish Parliament, the Government or the organisation audited decides itself what action it may need to take in connection with the audits performed by the Swedish NAO.
The Government has a duty to report to the Swedish Parliament on the action that has been, or is being taken in connection with the observation of the Swedish NAO. Such reporting normally takes place in Budget Bills.
A public agency which has received an auditor’s report involving an audit objection must report to the Government within one month on the action it has taken, or intends to take in connection with the objection made by the Swedish NAO.
Openness and clarity
Openness, clarity and integrity are key components for the Swedish NAO in the contacts with the organisations that are audited. The Swedish NAO offers the top management of the organisations continuous information about the audits in order to help these organisations understand how the Swedish NAO works and what they are expected to contribute.
A part of Parliamentary control
The Swedish Parliament has a number of instruments to scrutinise Government activities whereof the Swedish NAO is one. These instruments constitute the Parliamentary Control. The system for Parliamentary Control is designed to ensure that the Government and public agencies comply with Swedish law, that they work efficiently and that the citizens feel that they can trust the way in which the public agencies exercise their powers. The primary focus of the Swedish NAO is to examine what central government funds are used for and how efficiently they are used.
The other instruments of parliamentary control set out in the Swedish Constitution is:
- Interpellation – the possibility for a member of parliament to address questions to the Government.
- The Committee on the Constitution – a parliamentary committee responsible for ensuring that the Government observes existing regulations.
- Declaration of no confidence – if the Swedish Parliament no longer has confidence in a minister or in the prime minister it can decide to make a declaration of no confidence.
- Parliamentary Ombudsmen – ensures that the public is treated in accordance with existing laws when dealing with public agencies.
See the website of the Swedish Parliament to learn more about Parliamentary Control.
