ALRAQABA . ISSUE 15
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I.
Short-term vision
: Understanding the importance of fraud auditing.
II.
Mid-term vision
: Sharpen SAB’s auditor’s skills through training on new techniques used in the
detection of financial misconduct.
III.
Long-term vision
: Formation of an anti-fraud department that performs forensic audit and
investigations with knowledgeable, certified employees.
Objectives
The main objectives of the strategy paper are as follows:
I. Understand the petroleum industry in the United States and how it is related to the GAO and
compare that to the Kuwaiti petroleum industry.
II. Provide SAB with investigative approaches used in the GAO, which if implemented, may reduce
fraud and embezzlement in Kuwait’s petroleum industry. In addition to, providing recommendations
to SAB on the outcomes that the GAO FAIS department achieved.
III. Formation of forensic audit and investigative services department in SAB through the integration
of fraud auditing into SAB’s culture so that transparency and integrity can take root.
IV. Develop a Framework for Managing Fraud Risks in Federal Programs in SAB to increase users
trust through enhancing reporting quality by adding a fraud reporting section.
V. Save public funds and auditors time through adopting international standards in forensic auditing.
VI. Provide SAB with a clear understanding of what kind of skills are needed in auditors for FAIS
departments in addition to technological programs used in FAIS departments. Thus, Sharpening
SAB’s auditor’s skills through implementation of forensic auditing as well as teaching them new
techniques that are used in helping individuals and businesses detect financial malpractice
in their ventures.
Petroleum Industry in Kuwait and the United States
This section will focus on a comparison of the petroleum industry in both countries. The petroleum
industry is the largest industry in the State of Kuwait, producing about 3.150 million barrels per day
and representing about 7% of the world’s production. Although petroleum is not its largest industry,
the U.S. is nevertheless the top oil-producing country in the world, with an average production of
10 million barrels per day representing about 15.3% of the world’s production. The U.S. is also the
second largest producer of liquefied natural gas (LNG).
Comparison of the petroleum industry at a glimpse
Ownership and management of the petroleum industry are significantly different in both countries.
In the United States, most oil and gas resources are privately owned and operated. In Kuwait, all
oil and gas resources are owned and operated by the State of Kuwait. Below is a table showing the
major similarities and differences in both countries:
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