According to Article 97 of the Constitution and Article 20 of the BAI Act, the BAI examines the final accounts of revenues and expenditures of the State,
audits the accounts of the State and such organizations as prescribed by the laws, and inspects the works performed by government agencies and the duties of their employees. the BAI is a constitutional agency whose functions, status and organization are clearly written in Articles 97 to 100 of the Constitution. The BAI is established under the President, but retains an independent status and other necessary matters. Duties and functions of the BAI in detail are as follows:

BAI examines the final accounts of revenues and expenditures of the State and reports the results of such examinations to the President and the National Assembly.

BAI audits the accounts of the State (central government agencies), provincial governments and other local autonomous bodies, and government-invested organizations in order to ensure proper and fair accounting. The entities subject to BAI’s audit can be classified into two categories: entities subject to mandatory audit and entities subject to discretionary audit.

BAI inspects the works performed by government agencies and the duties of their employees in order to improve the operation and quality of government services.

Judgment on Liability for Reparation (Article 31)

BAI, after reviewing the results of an audit, examines and adjudicates whether an accounting official or any other person is liable for reparation, in accordance with the provisions of laws.

Request for Disciplinary Action (Article 32, 51)

BAI may request the responsible Minister or the appointing authorities to take a disciplinary action on public officials who fall under causes for disciplinary action as provided for in the Civil Service Act or other laws and decrees, or who have refused audit and inspection or neglected the submission of documents under this Act without proper reason. A person who has refused audit and inspection or failed to comply with the request for presentation of information, data, or documents shall be subject to a penal servitude for not exceeding one year or a fine not exceeding 5 million won. As for those persons who are not subject to the provisions of disciplinary action under laws and decrees but are subject to reprimand prescribed by the relevant laws, decrees or the regulations of the organization to which they are assigned or those who deny audit and inspection or delay the submission of documents provided in this Act without due reasons, a request for reprimand may be made to the chief of the supervisory agency or the chief of the organization concerned.

Request for Correction (Article 33)

In case BAI has found a fact which seems illegal or improper as a result of audit and inspection, it may request the responsible Minister, the chief of the pertinent supervisory agency or the chief of the agency concerned to correct or pay more attention to it.

Request for Improvement (Article 34)

Should BAI identify inconsistencies or possible improvements in laws and decrees, institutions or administration as a result of audit and inspection, it may request the Prime Minister, responsible Minister, the chief of pertinent supervisory agency or the chief of the agency concerned to take measures necessary for enactment, revision or abolition of laws and decrees or the improvement of institutions or administration.

Recommendations, etc (Article 34-2)

When the results of audit and inspection show that it is inappropriate for the BAI to make such requests as prescribed by Articles 32 through 34, or it seems necessary for the chief of the relevant agency to handle the matter on his own initiative or it is needed for the economy, efficiency, and fairness of administration, the BAI may make recommendations or provide advice for improvement to the responsible Minister, the supervisory agency, or the chief of the agency concerned.

Accusation (Article 35 of the BAI ACT, Article 19 of the Disposal of Audit and Inspection Work)

In case where BAI considers that there is a suspicion of crime as a result of audit and inspection, it shall institute an accusation with the public prosecutions authorities. An accusation should be decided by the Council of Commissioners. However, it can request the public prosecutions authorities to investigate without going through the decision process by the Council of Commissioners in case there are apprehension about destruction of evidence or runaway. If it is difficult to directly institute an accusation or an investigation with the public prosecutions authorities because of limit on time or place, BAI can request the responsible organizations to take appropriate measures.

If audited entities, pertinent Ministers, appointing authorities, appointment-recommending authorities, head of the supervisory agency, or an individual (who has been ordered to make reparation) believe that the BAI’s decisions against them are illegal or unjust, they can submit a request for re-examination to BAI. Furthermore, BAI may initiate the re-examination process on its own authority if it finds its decisions inappropriate or unjust, as long as such a finding has been made within two years after the decision. If the BAI’s rulings of re-examination are not acceptable, the parties concerned can file an administrative litigation against BAI.

Those whose rights or interests have been infringed upon because of illegal or unjust administrative actions taken by agencies subject to BAI’s audit, may institute an appeal through the authorities concerned with BAI. BAI will examine the case and communicate the results of its examination to the individual who has made the claim and the head of the relevant agency The head of the relevant agency must take measures according to the BAI’s decision. The individual can file an administrative litigation against the relevant agency by reason of his dissatisfaction with the agency’s measures.

BAI examines at firsthand or consigns the internal audit and inspection institutions to examine civil affairs handed out by petitioners or sent from other agencies, or illegal or improper matters reported through 188 hot line. As a result of audit and inspection, BAI may request the responsible organizations correction or appropriate measures and notify the result of audit and inspection to the petitioner or the 188 reporter.

Government agencies should ask for BAI’s opinions when the enactment, revision or abolition of relevant laws concern accounting, powers of BAI or internal audit and inspection. Should accounting officials of entities subject to BAI’s audit and inspection request advisory opinions concerning the interpretation of accounting laws, BAI will provide its authoritative interpretations.