State Audit Organization was established in 1998 through Prime Ministerial decree. In July 2006, National Assembly approved Audit Law that plays an important role in enhancing the effectiveness and independence of SAO. Under the law, SAO has turned into an independent government institution that holds a mandate to report the result of audit to president, National Assembly and prime minister.

 Constitutional Position

SAO is part of the government that pays a role as a government auditor. President of SAO is elected to five-year term and suspended by the National Assembly proposed by Standing Committee of National Assembly. The election has to be held soon after the National Assembly is indicted.


In pursuance to Laos’ Audit Law and other related regulations, SAO has a mandate to conduct a study on economy, efficiency, effectiveness of its entities, among other things, state institutions, mass organizations, and other organizations that manage and use public funds, social political organizations that use state budget, various organizations under the supervisory of armed forces, public projects funded by local budget, loan, and government contribution or grant from domestic and overseas organizations and state enterprises or a company with joint capital. Fields subject to SAO audit covers an audit on financial report, compliance, and working performance. Meanwhile, by the type of audit, SAO audit covers planned audits, audits by request and spontaneous audits. All of SAO audit reports must be sent to audited entities along with its management, and besides, there are other stipulations on delivering SAO reports, namely:

Audit reports on the use of annual state budget must be submitted to National Assembly and prime minister.

Annual reports on performance of SAO audit activity must be submitted to Standing Committee of National Assembly and prime minister.

Audit reports by request from an organization must be submitted to an audited entity.

Spontaneous audits must be sent to an organization that set forth the request.