General Principles of Public Sector Auditing:

1. Ethics and Independence:

   • Auditors should comply with ethical requirements and maintain independence.
   • Ensures impartiality and credibility in audit reporting.

2. Professional Judgment, Due Care, and Skepticism:

   • Auditors must apply professional skepticism, sound judgment, and due care throughout the audit.
   • Helps in detecting misstatements, fraud, and irregularities.

3. Quality Control:

   • The audit should be performed in accordance with professional standards to ensure high-quality work.
   • Includes proper supervision, documentation, and review of audit work.

4. Audit Team and Management Skills:

   • Auditors must possess or have access to the necessary skills and expertise to conduct audits effectively.
   • Specialized knowledge in areas such as financial audits, compliance audits, and performance audits is essential.

5. Audit Risk Management:

   • Audit risk is the risk that an inappropriate audit report may be issued.
   • Auditors should design procedures to minimize risk and ensure reliable audit conclusions.

6. Materiality Considerations:

   • Materiality should be considered throughout the audit process.
   • Ensures that only significant issues affecting decision-making are reported.