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- 10 Marks
Question
a) Accountability and transparency are two important elements of good governance. Transparency is a powerful force that, when consistently applied, can help fight corruption, improve governance, and promote accountability.
Accountability and transparency are not easily separated: they both encompass many of the same actions, for instance, public reporting. The concept of accountability refers to the legal and reporting framework, organisational structure, strategy, procedures, and actions. The notion of transparency refers to timely, reliable, clear, and relevant public reporting on its status, mandate, strategy, activities, financial management, operations, and performance. In addition, it includes the obligation of public reporting on audit findings and conclusions and public access to information about the Government audit.
An important principle set out in INTOSAI-P 20: Principles of Transparency and Accountability is that SAIs should adopt audit standards, processes, and methods that are objective and transparent.
Required:
i) Discuss FIVE (5) ways in which the Auditor-General can adopt standards, processes, and methods that are deemed objective and transparent. (5 marks)
ii) Discuss FIVE (5) ways the Audit Service can operate economically, efficiently, effectively, and in accordance with laws and regulations. (5 marks)
Answer
i) Ways in which the Auditor-General can adopt standards, processes, and methods that are objective and transparent:
- Legal Obligation Compliance: The Auditor-General must ensure that their operations meet legal obligations with respect to their audit mandate and required reporting.
- Adoption of International Standards: The Auditor-General should adopt standards and methodologies that comply with INTOSAI’s fundamental auditing principles as set out in ISSAIs.
- Communication of Standards: The Auditor-General should communicate what those standards and methodologies are and how they comply with them.
- Audit Scope Communication: The Auditor-General should communicate the scope of audit activities they undertake under their mandate, based on their risk assessment and planning processes.
- Engagement with Audited Entities: The Auditor-General should communicate with the audited entity about the criteria on which they will base their opinions, keeping them informed about audit objectives, methodology, and findings.
(5 points @ 1 mark each = 5 marks)
ii) Ways the Audit Service can operate economically, efficiently, effectively, and in accordance with laws and regulations:
- Sound Management Practices: The Audit Service should employ sound management practices, including appropriate internal controls over financial management and operations, which may include internal audits and other measures.
- Financial Transparency: The Audit Service should make its financial statements public and subject to external independent audits or parliamentary reviews.
- Operational and Performance Assessment: The Audit Service should assess and report on its operations and performance in all areas, such as financial audits, compliance audits, jurisdictional activities, performance audits, and program evaluations.
- Skill Development: The Audit Service should maintain and develop the necessary skills and competencies required to perform work to achieve its mission and meet responsibilities.
- Budget Reporting: The Audit Service should publicly report on its total budget, the origin of financial resources, and how those resources are used. This includes measuring and reporting on the efficiency and effectiveness with which funds are used.
(5 points @ 1 mark each = 5 marks)
- Tags: Accountability, Good Governance, Public Sector Audit, Transparency
- Level: Level 3
- Uploader: Dotse