- 20 Marks
AAA – Mar 2025 – L3 – Q4 – Audit Committees and Performance Auditing
Discuss mandatory roles of Audit Committees under PFM Act and evaluate objectives and features of performance audits.
Question
a) Audit Committees play a significant role in improving and providing transparency around governance risk management and internal control functions of Public Sector Organisations. The roles and responsibilities of the Audit Committee are provided for under section 88 of the Public Financial Management (PFM) Act 2016, (Act 921) and the Guidelines for Effective Functions of Audit Committees (2017) issued by the Ministry of Finance.
Required:
Discuss the mandatory roles and responsibilities of Audit Committee.
(10 marks)
b) Performance auditing is an independent, objective auditing and reliable examination of whether government undertakings, systems, operations, programmes, activities or organisations are operating as expected. It is mostly used for non-profit making organisation to assess the viability of such organisation, though it can also be used for profit making organisation to ensure whether the organisation is achieving certain objectives.
Required:
i) Evaluate the objectives of performance audits.
(6 marks)
ii) Explain TWO features of performance audits.
(4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Committee, Corporate Governance, Performance Auditing, PFM Act, Public Sector
- Level: Level 3
- Topic: Public Sector Audits
- Series: MAR 2025
