- 12 Marks
Question
Briefly discuss the THREE types of audit responsibility of the Auditor-General for the Federation in line with Financial Regulation (2009 Edition). (12 Marks)
Answer
- Financial Audit: This involves determining whether an entity’s financial information is presented in line with applicable financial reporting and regulatory frameworks. Auditors examine for any misstatements and errors that could materially impact the information in the financial statements. Misstatements are deemed material if they affect the decisions of the intended users of these financial statements.
- Appropriation Audit: This type of audit ensures that funds are used as appropriated by the National Assembly. It focuses on compliance with criteria derived from authorities, such as parliamentary decisions, laws, and legislative acts. The main objective of compliance audits is to verify that public entities follow laws, policies, and agreed terms.
- Financial Control Audit: This audit reviews all public sector transactions to assess the financial health of public entities. It checks adherence to laid down procedures in areas like tendering, contracts, and storekeeping to prevent waste, pilferage, and extravagance.
- Tags: Auditor General, Compliance Audit, Financial audit, Financial Regulations
- Level: Level 2
- Topic: Public sector audit
- Uploader: Kofi