What Is The Main Difference Between Public Sector Auditing And Private Sector Auditing?

Even though the approach of auditing public sector organizations and private sector organizations are similar, they can be distinguished in the following areas.

but let look at the meaning of public sector audit and other terminologies in public sector audit and what to make the auditing work successful

MEANING OF AUDITING

Auditing is an independent appraisal process often governed by statute, for examining investigating and verifying the financial statements of an organization, by a person competently appointed.

It is the process of examining and evaluating records intended to show the financial condition and result of the operation in order to provide a basis for an opinion concerning the reliability and authenticity of the records.

A person carrying out an audit seeks to establish an opinion concerning the truth, accuracy, validity, reliability and fairness or otherwise of the statements and the underlying records on which the statements have been built and whether or not they comply with any statutory or other requirements.

READ ALSO: WHAT IS PURPOSE OF PUBLIC SECTOR AUDIT?

Auditing in the public sector is the means through which the parliament extracts accountability from the executives.

Thus it serves as a watchdog for accountability, expected to investigate and report on the responsibility assumed by the executives, whether the report given by the executives as regards the discharge of responsibility is correct.

OBJECTIVES OF PUBLIC SECTOR AUDITING

The main objective of public sector audit is to provide assurance to parliament, the government and the public that government department, ministries and agencies are operating and accounting for their performance in accordance with the Act of Parliament, the relevant regulations and public interest.

To achieve these main objectives, the following three sub-objectives need to be achieved;

1. Legal and regulatory compliance

To assure parliament that the transactions undertaken by the government reporting organization were with the appropriation law and specifically in line with the regulations set for the organization concern

2. Reliability

To assure parliament as to the fact that, the published accounts resulting from the organizational transaction in using the appropriated fund is reliable.

3. Value for money

To determine the extent of economy, efficiency and effectiveness that resulted in the use of the resources that were given to the organization.

The parliament achieves these objectives through the audit work of the external auditors. In Ghana, this is done mainly by the government audit department known as the Ghana Audit Service.

WHAT IS THE MAIN DIFFERENCE BETWEEN PUBLIC SECTOR AUDITING AND PRIVATE SECTOR AUDITING?

Even though the approach of auditing public sector organizations and private sector organizations are similar, they can be distinguished in the following areas.

There are four main difference between public sector auditing and private sector auditing base on the following.

• Appointment
• The legal and ethical basis of operations
• Audit Approach
• Remuneration

WHAT IS THE MAIN DIFFERENCE BETWEEN PUBLIC SECTOR AUDITING AND PRIVATE SECTOR AUDITING?

find below the four main difference between public sector auditing and private sector auditing