• 20 Marks

FM – L2 – Q3.3 – Public expenditure and financial accountability framework

Name and explain objects of enactments for external and internal audit in public sector.

Audit is a very important vehicle for accountability in the public sector. Therefore, appropriate enactment is made to govern and regulate external audit and internal audit in the public sector of the Republic of Takoradi.

Required:

(a) Name and explain the objects of the two enactments that govern and regulate external audit and internal audit in the public sector respectively.

(b) Discuss four responsibilities each of the following institutions under the respective enactments:

(I) Audit Service.

(ii) Internal Audit Agency.

(a) Audit Service Act 2000 (Act 584) governs and regulates External Audit. The Audit Service Act 2000 (Act 584) establishes a legal framework for the functioning of the Audit Service and the conduct of audits in the public sector. It ensures the independence, accountability, and professionalism of the Audit Service in carrying out its vital role in promoting transparency and accountability in public financial management.

Internal Audit Agency Act 2003 (Act 658) governs and regulates internal audit oversight in the Republic of Takoradi. The Act establishes an Internal Audit Agency as a central agency to co-ordinate, facilitate, monitor and supervise internal audit activities within Ministries, Departments and Agencies and Metropolitan, Municipal and District Assemblies in order to secure quality assurance of internal audit within these institutions of State. The object of the Agency is to co-ordinate, facilitate and provide quality assurance for internal audit activities within the Ministries, Departments and Agencies and the Metropolitan, Municipal and District Assemblies.

    (b)i  The responsibilities of the Audit Service and the Auditor General:

  • The public accounts of the Republic of Takoradi and of all public offices, including the courts, the central and local government administrations, of the Universities and public institutions of like nature, of any public corporation or other body or organization established by an Act of Parliament shall be audited and reported on by the Auditor-General.
  • The Auditor-General or any person authorized or appointed for the purpose of the audit by the Auditor-General shall have access to all books, records returns and other documents relating or relevant to those accounts.
  • All the public accounts of the Republic of Takoradi and of all other persons or authorities referred to in clause (2) of article 187 shall be kept in such form as the Auditor-General shall approve.
  • In the performance of his functions under this Constitution or any other law the Auditor-General shall not be subject to the direction or control of any other person or authority.
  • He may disallow any item of expenditure which is contrary to law and surcharge: (I) the amount of any expenditure disallowed upon the person responsible for incurring or authorizing the expenditure; or (ii) any sum which has not been duly brought into account, upon the person by whom the sum ought to have been brought into account; or (iii) the amount of any loss or deficiency, upon any person by whose negligence or misconduct the loss or deficiency has been incurred.
  • Administers the declaration of assets and liabilities by public office holders such as the President, the Chief Justice, Ministers, and Members of Parliament amongst others.                                                                                                                                                                                                                                                                                                                                                              (b)ii   The Agency performs the following functions:
    • The Agency shall set standards and procedures for the conduct of internal audit activities in the MDAs and MMDAs.
    • Ensure that financial, managerial and operating information reported internally and externally is accurate, reliable and timely;
    • Ensure that the financial activities of MDAs and MMDAs are in compliance with laws, policies, plans, standards and procedures;
    • Ensure that national resources are adequately safeguarded;
    • Ensure national resources are used economically, effectively and efficiently;
    • Ensure that plans, goals and objectives of MDAs and MMDAs are achieved;
    • Ensure risks are adequately managed in the MDAs and MMDAs.
    • Promote economy, efficiency and effectiveness in the administration of government programmes and operations;
    • Prepare plans to be approved by the Board for the development and maintenance of an efficient internal audit for the MDAs and MMDAs;
    • Facilitate the prevention and detection of fraud;
    • Provide a means for keeping the MDAs and MMDAs fully and currently informed about problems and deficiencies related to the administration of their programmes and operations and the necessity for appropriate corrective action.
    • The Agency shall monitor, undertake inspections and evaluate the internal auditing of the MDAs and MMDAs.

Back to all study questions

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form