- 20 Marks
AAA – March 2023 – L3 – Q4 – Internal audit and outsourcing, public sector audit
Discuss the impact of the Internal Audit Agency on government institutions and analyze the effects of payroll outsourcing.
Question
a) Internal Auditing has assumed great importance as a tool of accountability in organizations both public and private. Internal auditors being employees of the organization they audit; do not enjoy the protection they need to operate independently. There arose the need for an independent regulatory and supervisory authority to give professional direction and protection to internal auditors to do their work without undue interference. It was for those reasons that the Internal Audit Agency was established as a supervisory authority to regulate the practice of Internal Auditing in the Public Sector.
Required:
Discuss the impact of Internal Audit Agency on MDAs, MMDAs and Government Agencies since its establishment in Ghana. (10 marks)
b) In his mid-year assessment of the national budget, the Minister of Finance made a suggestion that outsourcing of government payroll might be considered. The assurance of cost was the primary factor. A biometric exercise carried out by SSNIT in April 2017 made sure that 27,000 “ghost” names were found and taken off the government payroll.
Required:
i) Discuss the effects of payroll outsourcing in this stance. (5 marks)
ii) Analyze what the service user auditor must do in the course of his duties when the outsourcing programme is implemented. (5 marks)
(Total: 20 marks)
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