Topic: Government external audit and public accountability

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AAA – July 2023 – L3 – Q4b – Government external audit and public accountability | Public sector audit

Discuss the responsibilities for an audit committee member during the first year of tenure in a public sector organization.

Question

The Public Financial Management Act, 2016 (Act 921) requires that all public sector entities should have audit committees. The Act also prescribes the functions of such committees; the functions include mandatory responsibilities and advisory responsibilities. Fortunately, you have been appointed to serve on the audit committee of a Government Agency for a term of two years, renewable for a second term, also for two years.

Required:

Discuss FIVE (5) responsibilities for the first year of your tenure. (10 marks)

Answer

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Tags: Audit Committees, Compliance, Governance, Public Sector Audit
Level: Level 3

Topic: Government external audit and public accountability, Public sector audit
Series: JULY 2023

AAA – Dec 2023 – L3 – Q4a – Government External Audit and Public Accountability

Discuss the principles under INTOSAI-P 12 that Supreme Audit Institutions (SAIs) should follow to strengthen accountability, demonstrate relevance, and lead by example.

Question

Governments, through Parliament, levy and collect taxes from the citizens of their countries. The taxes collected must be used in providing services to the citizenry. The taxpayer must be assured that taxes paid are used and accounted for transparently. Supreme Audit Institutions (SAIs) are set up under their countries’ constitutions to carry out audits of public funds on behalf of the citizens. According to INTOSAI-P 12: The Value and Benefits of Supreme Audit Institutions – making a difference to the lives of citizens, the extent to which a SAI is able to make a difference to the lives of citizens depends on the SAI:

i) Strengthening the accountability, transparency, and integrity of government and public sector entities;
ii) Demonstrating ongoing relevance to citizens, Parliament, and other stakeholders; and
iii) Being a model organisation through leading by example.

Required:
Discuss THREE (3) principles under each of the headings (i-iii). (10 marks)

Answer

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Tags: Accountability, Integrity, INTOSAI-P 12, Public Sector, Supreme Audit Institutions, Transparency
Level: Level 3

Topic: Government external audit and public accountability
Series: DEC 2023

AAA – Nov 2020 – L3 – Q4b – Government External Audit and Public Accountability | Public Sector Audit

Explain the factors to consider when determining if financial statements are properly prepared under a compliance framework and differentiate between a fair presentation framework and a compliance framework.

Question

You led a team of auditors from the Auditor-General’s Department to audit the Financial Statements of the Ministry of Defence. You have just completed the audit and are about to report your findings.

Required:
i) Explain the factors you will take into account to determine that the financial statements have been properly prepared in accordance with a compliance framework. (6 marks)

ii) Explain the difference between a fair presentation framework and a compliance framework. (4 marks)

Answer

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Tags: Compliance Framework, Fair Presentation, Financial Statements, IPSAS, Public Sector Audit
Level: Level 3

Topic: Government external audit and public accountability, Public sector audit
Series: NOV 2020

AAA – Nov 2020 – L3 – Q4a – Government External Audit and Public Accountability | Public Sector Audit

Evaluate the extent to which the Auditor-General is not subject to direction or control by any other authority.

Question

The Auditor-General of Ghana has unfettered power and is not subject to the control of any other authority in the discharge of his duties. He therefore refuses to accept any directives from cabinet ministers.

Required:
Evaluate the extent to which it can be said that the Auditor-General is not subject to direction of any other authority. (10 marks)

Answer

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Tags: Auditor General, Constitutional Powers, Government Accountability, Independence, Public Sector Audit
Level: Level 3

Topic: Government external audit and public accountability, Public sector audit
Series: NOV 2020

AAA – May 2021 – L3 – Q4a – Reporting | Government external audit and public accountability

Discuss additional guidance for public sector auditors on the use of emphasis of matter paragraphs in audit reports according to ISSAI 1706 (Revised).

Question

ISSAI 1706 (Revised) provides the requirements for an auditor who, having formed an opinion on the financial statements, has determined that it is necessary to draw users’ attention, by way of clear additional communication in the auditor’s report, to:

(a) A matter, although appropriately presented or disclosed in the financial statements, that is of such importance that it is fundamental to users’ understanding of the financial statements; or (b) As appropriate, any other matter relevant to users’ understanding of the audit, the auditor’s responsibilities, or the auditor’s report.

Required:

What additional guidance for public sector auditors relates to “Emphasis of Matter Paragraphs” in the Auditor’s Report? (10 marks)

Answer

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Tags: Audit Reporting, Emphasis of Matter, ISSAI 1706, Public Accountability, Public Sector Audit
Level: Level 3

Topic: Government external audit and public accountability, Reporting
Series: MAY 2021

AAA – Nov 2023 – L3 – Q4a – Government External Audit and Public Accountability, Public Sector Audit

Discuss ways in which the Auditor-General can adopt standards and processes that are objective and transparent, and how the Audit Service can operate economically, efficiently, and effectively.

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

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Tags: Accountability, Good Governance, Public Sector Audit, Transparency
Level: Level 3

Topic: Government external audit and public accountability, Public sector audit
Series: NOV 2023

AAA – Nov 2019 – L3 – Q4b – Government External Audit and Public Accountability

Explain compliance audit in MMDAs, its basis, and the main information in the compliance audit report.

Question

To ensure that government business is carried out properly in Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District Assemblies (MMDAs), the Auditor-General may carry out compliance audit and report the outcome to the auditee and Parliament.

Required:

i) Explain compliance audit in relation to MMDAs. (2 marks)

ii) Assess the basis for the conduct of compliance audit in MMDAs. (4 marks)

iii) Discuss the main information that should be contained in the compliance audit report. (4 marks)

Answer

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Tags: Compliance Audit, MMDAs, Public Sector Audit, Reporting
Level: Level 3

Topic: Government external audit and public accountability

AAA – Nov 2019 – L3 – Q4a – Government External Audit

Assess the role of Parliament in ensuring judicious use of resources and proper accountability.

Question

The framers of the 1992 Republican Constitution of Ghana realised that the Controller and Accountant General and the Auditor- General alone cannot completely ensure the proper use and accountability of resources of Ghana. It is in this vein that Parliament has also been assigned some responsibility in the respect.

Required:

Assess the role of Parliament under the constitution in ensuring judicious use of the resources and proper accountability. (10 marks)

Answer

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Tags: Constitution, Parliament, Public Accountability, Public Resources
Level: Level 3

Topic: Government external audit and public accountability
Series: NOV 2019

AAA – March 2023 – L3 – Q5a – Current issues, Government external audit and public accountability

Evaluate five responsibilities of the Board for risk management of rural banks.

Question

The Central Bank of Ghana (BoG) is mandated to ensure the smooth running of the banking system. Over the years, Bank of Ghana has taken pride in enforcing stricter regulation and supervision. In this regard, the BoG formulated the Banks and Specialised Deposit Taking Institutions Act, Act 930 in 2016, which empowers it to be more aggressive in dealing with deviations in the sector. The BoG, aside instituting regulations, undertook a clean-up of the financial sector. This saw the number of universal banks drop from 30 at the beginning of 2018 to 23, as at the end of December 2018. These 23 universal banks were able to meet the minimum capitalisation requirement of GH¢ 400 million by the end of December 2018 (BoG, MPC reports, 2018).

Major corporate failures worldwide have dented investor confidence as well as raised several questions on the effectiveness of a firm’s internal control system and the corporate governance structures and also poor risk management especially for banks. Bank of Ghana in addressing collapse of Rural Banks and the risk management gap of the rural banking space introduced the Risk Management Guidelines for Rural and Community Banks in May 2021.

Required:
Evaluate FIVE (5) of the responsibilities of the Board for risk management of rural banks.

(10 marks)

Answer

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Tags: Board Responsibilities, ICAG, Risk Management, Rural Banks
Level: Level 3

Topic: Current issues, Government external audit and public accountability
Series: MAR 2023

AAA – May 2020 – L3 – Q4b -Government external audit and public accountability, Public sector audit

Discuss the role of performance audit and the Auditor-General’s concerns in auditing the construction of the Greater Accra Regional Hospital.

Question

The Auditor-General has a responsibility to ensure that government business is being performed in a manner which will bring development and benefits to the citizens. Various aspects of the conduct of government business will engage the attention of the Auditor-General, for example execution of contracts for the construction of a regional hospital.

Required: i) Briefly discuss what performance audit entails? (2 marks)

ii) In carrying out the performance audit, evaluate the THREE (3) main factors that the Auditor-General will be concerned with in relation to the construction of the Greater Accra Regional Hospital. (8 marks)

(Total: 10 marks)

Answer

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Tags: Auditor General, Economy, Effectiveness, Efficiency, Government Projects, Performance Audit, Public Accountability, Regional Hospital
Level: Level 3

Topic: Government external audit and public accountability, Public sector audit
Series: MAY 2020

AAA – May 2020 – L3 – Q4a – Government external audit and public accountability

Analyze the role and constitutional status of the Auditor-General of Ghana in ensuring public accountability to combat corruption.

Question

a) Among the factors hindering the development of third-world countries is corruption. Corruption has been an obstacle for doing business in many countries. It occurs often in locally funded contracts and several measures have been adopted to curb it but it still persists. One of such measures is the creation of the office of the Auditor-General in many countries.

Required:
Assess the role and constitutional status of the Auditor-General of Ghana in ensuring public accountability as a means of fighting corruption.
(10 marks)

Answer

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Tags: Auditor General, Constitutional Role, Corruption, Government Audit, Public Accountability
Level: Level 3

Topic: Government external audit and public accountability
Series: MAY 2020

AAA – Nov 2018 – L3 – Q3b – Audit approach, Government external audit and public accountability

Discussing the importance of environmental issues in an audit and how to carry out an environmental audit.

Question

Eco-Essence is a limited liability company set up to produce water and pharmaceutical products. Currently, it produces only sachet water. It has all the necessary certifications for production, including that of the Food and Drug Authority (FDA), Environmental Protection Agency, and District Assembly. The company operates from a quasi-residential area. Of late, the residents of the area have been complaining of an increase in the noise levels from the plant, pollution as a result of the sachet water rubbers, wastewater from the plant making some part of the community marshy, and deterioration of the quality of the roads due to the weight of heavy-duty vehicles.

Required:
i) Briefly outline why environmental issues are important to you in the audit of Eco-Essence. (3 marks)

ii) Discuss how you will carry out an environmental audit on Eco-Essence. (7 marks)

Answer

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Tags: Audit Procedures, Compliance, Environmental audit
Level: Level 3

Topic: Government external audit and public accountability, The audit approach
Series: NOV 2018

AAA – May 2018 – L3 – Q4a – Government external audit and public accountability, Public sector audit

Discuss the Managing Director's refusal to allow auditors to verify performance agreements and the need to establish an Audit Committee under the Public Financial Management Act

Question

a) Sewerage Corporation was established by an Act of Parliament to provide water to Rural Communities. The team of auditors from the Ghana Audit Service demanded to verify the performance agreements made by the company with the state. The Managing Director refused on the grounds that the auditors were over-stepping the scope of their work.

The auditors also discovered that the corporation has not established an Audit Committee (AC), as required by the Public Financial Management Act 2016, Act 921. Management’s response was that AC was not established because it did not see its importance even though it is required by law.

Required: i) Comment on the action of the Managing Director on the performance agreement. (5 marks) ii) Advise the Managing Director on the need to establish an Audit Committee (AC). (5 marks)

Answer

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Tags: Audit Committee, Auditor General, Ghana Audit Service, Performance Agreement, Public Financial Management Act, Public Sector Audit
Level: Level 3

Topic: Government external audit and public accountability, Public sector audit
Series: MAY 2018

AAA – April 2022 – L3 – Q4b – Government external audit and public accountability, Public sector audit

Discuss the merits of Supreme Audit Institution (SAI) on a state economy.

Question

Supreme Audit Institutions (SAI) are external auditors for the state or a country. They are set up to audit the work of state institutions and usually report to parliament. They are independent in nature and their work is not subject to control of the executive.

Required: Discuss the merits of Supreme Audit Institution (SAI) on a state economy. (10 marks)

Answer

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Tags: Audit Independence, Public Accountability, Public Sector Audit, State Economy, Supreme Audit Institution
Level: Level 3

Topic: Government external audit and public accountability, Public sector audit
Series: APR 2022

AAA – April 2022 – L3 – Q4a – Government external audit and public accountability, Public sector audit

Discuss the factors an auditor considers in determining the going concern assumption of a public sector entity.

Question

Going concern assumption is important in financial audit, without which an entity being audited is viewed as not operating into a foreseeable future. In the public sector, going concern is also assumed, though the assumption may be different from financial considerations.

Required: Discuss the factors an auditor will consider in determining the going concern assumption of a public sector entity. (10 marks)

Answer

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Tags: Audit Procedures, Going Concern, Public Accountability, Public Sector Audit
Level: Level 3

Topic: Government external audit and public accountability, Public sector audit
Series: APR 2022

Nov 2015 – L3 – Q1c – Government external audit and public accountability

Key issues that must be highlighted in the Auditor General’s Report submitted to the Public Accounts Committee of Parliament.

Question

c) The Auditor General is required in Ghana to submit his Report to the Public Accounts Committee of Parliament within six months of the end of the year to which it relates.

Required:

Identify the principal matters to which this Report must draw attention. (5 marks)

Answer

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Tags: Auditor General, Government Audit, Public Accountability, Reporting Requirements
Level: Level 3