We will examine audit services and auditor general reports in public sector services or public sector administration in this public sector accounting.
AUDIT SERVICE AND AUDITOR GENERAL’S REPORT
Report of the Audit Service and the Auditor General
The objectives of this public sector accounting are as follows:
You should be able to:
- Regard the Ghana Audit Service’s mandate
- The Audit Service Board’s composition,
- the general nature of auditing in the public sector
- the Auditor General’s responsibilities
- the Constitutional provisions governing the Auditor-relationship General’s with the Public Sector Auditing, and
- the procedures for appointing an Auditor-General.
Now continue reading.
4.1 The Audit Service Act of 2000 (Act 584)
The Audit Act 2000 is the primary regulatory tool for public sector auditing. The following key areas are discussed in detail:
4.1.1 The Service’s Governing Body
The Audit Service Board, referred to in this Act as “the Board,” shall govern the Service. The Board shall be comprised of the following:
A chairman and four additional members are appointed by the President in collaboration with the State Council.
The Comptroller or Auditor General
The head of the civil service or a representative of the head of the civil service may
The President, acting on the advice of the Council of State, may remove a member of the Audit Service Board, other than the Auditor-General or the Head of the Civil Service or his representative, from office for inability to perform the functions of his office due to mental or physical infirmity or for any other sufficient cause.
4.2 Comptroller General’s Office
Ghana’s Constitution (1992) establishes the Ghana Audit Service as part of the country’s public services.
The Auditor General is a member of the Audit Service Board, which is charged with the following responsibilities:
establishing the terms and conditions of employment for Ghana Audit Service workers.
Creating legislation to ensure the Ghana Audit Service is administered efficiently
4.3 Ghana’s Constitution (1992)
The Constitution has the following significant clauses about the Auditor-General:
The Auditor-General is responsible for auditing Ghana’s public accounts and all public offices (including courts, federal and local government, and any public company or other organization constituted by Parliament).
The Auditor-General has access to all books, records, returns, and other documents pertaining to or relating to those accounts.
The Auditor-General is required to deliver his report to parliament within six months after the conclusion of each set of financial statements.
The Auditor-report General must bring attention to any accounting errors and to any other problems that, in his opinion, should be brought to Parliament’s attention.
The President may request that the Auditor-General audit the financial records of any institution that falls within his purview.
may disallow any spending that violates the law. Additionally, he may assess a surcharge for this amount, any unaccounted for funds, or the amount of any loss.
Any person aggrieved by disallowances or surcharges may appeal to the high court.
This is an additional criterion for the auditor’s independence. General’s
It must not be directed or controlled by any person or authority.
4.4 The Auditor-Appointment General’s
The President, in collaboration with the Council of State, shall select an Auditor-General.
The Auditor-general’s office shall be a public office.
Before commencing the Auditor-duties, the person appointed shall take and subscribe to the Auditor-Oath General set down in the Second Schedule to the Constitution.
The Auditor-General shall retire at the age of sixty years, but may be retained for a limited period of not more than two years at a time and not more than five years in total, and on such other terms and circumstances as the President, in consultation with the Council of State, may establish.
The President shall decide the Auditor-General’s and allowances, as well as the facilities and privileges available to him, on the suggestion of a committee of not more than five individuals formed by the President and acting on the advice of the Council of State.
The Auditor-salary General’s and allowances shall be charged to the Consolidated Fund.
During his tenure of office, the Auditor-General’s and allowances, as well as his leave of absence, retirement award, and retirement age, shall not be reduced to his disadvantage.
The Auditor-General is subject to the provisions of Article 146 of the Constitution regarding the removal of the Superior Court of Judicature from office.
The Auditor-General may resign from his office at any time by writing to the President.
4.5: General Audit of Public Accounts
The Auditor-General shall audit and report on the public accounts of Ghana and all public offices, including courts, central and local government administrations, all universities and similar public institutions, and any public corporation, or other body or organization established by an Act of Parliament.
The Auditor-General or any person authorized or nominated by the Auditor-General shall have access to any books, records, returns, and other documents, including those in computerized and electronic form, relating to or relevant to those accounts for the purposes of subsection (1).
Ghana’s public accounts, as well as those of all persons and institutions mentioned in subsection (1), including computerized financial and accounting systems and electronic transactions, shall be kept in the manner approved by the Auditor-General and shall be subject to audit by the Auditor-General.
Internal auditors of organizations or bodies subject to subsection (1) shall send to the Auditor-General a copy of each report issued as a result of internal audit work performed.
All financial and accounting systems used to manage the accounts described in subsection (1) must be approved in advance by the Auditor-General, and any changes to such systems must be communicated to the Auditor-General and approved prior to implementation.
If the head of a public institution or other organization subject to audit by the AuditorGeneral violates subsection (5), he or she may be subject to a surcharge of
bear the cost of any loss caused by faulty or insufficient internal auditing controls.
4.6 Audit of Foreign Exchange Transactions
The Bank of Ghana should submit to the Auditor-General for audit, not later than three months after the end of the first six months of its financial year, and after the conclusion of the financial year, a statement of its foreign exchange receipts and payments, or transfers in and out of Ghana.
No later than three months following the filing of the statement referred to in section (1), the Auditor-General shall submit to Parliament his report on the statement.
4.7 Accounts Inspection
The Auditor-General shall review the public and other government accounts in any manner he deems necessary and shall ascertain if, in his opinion:
The accounts have been maintained properly.
All public funds have been thoroughly accounted for, and the related laws and procedures ensure an effective check on revenue assessment, collection, and proper allocation.
The funds have been increased to meet the purposes for which they were intended, and expenditures have been made in accordance with the authorization.
The necessary documents are kept, and the regulations and procedures are followed to secure and control public property.
Programs and activities have been carried out with proper consideration for economy, efficiency, and effectiveness in terms of the resources used and the results obtained.
4.8 Auditing of Statutory Corporations
The Auditor-General or a person appointed by him shall express his opinion on whether the accounts present fairly financial information in accordance with applicable statutory provisions, stated accounting policies of the government, and generally accepted accounting principles in respect of the accounts of a statutory corporation, a state enterprise, or a public commercial institution operating under its own enactment.
In addition to the audit report, the Auditor-General or any other person appointed by the Auditor-General to audit the accounts of statutory corporations must highlight the following:
Profitability, liquidity, stability, and solvency of the corporation, as well as the performance of the corporation’s shares in the capital markets, when applicable
Whether there was a delay in the payment to the Consolidated Fund of the government portion of any announced dividend, if any, Any notable instances of fraud or loss, as well as the underlying causes?
Any weaknesses in internal control are identified.
Overall corporate performance of the organization, indicating achievement of stated targets and objectives, as well as whether the organization’s finances have been managed with proper consideration for economy, efficiency, and effectiveness in relation to the resources used.
4.9 Examination of Controller and Accountant Receipts and the Auditor-Independence General’s and Authority
In carrying out his duties under the Act or any other law, the Auditor-General;
should not be directed or controlled by any other person or authority.
may disallow any expenditure that violates the law and surcharge the amount of any disallowed expenditure on the person responsible for incurring or authorizing the expenditure, as well as any sum that has not been properly brought into account on the person who should have brought the sum into account.
Estimates of Annual Service
The Board shall submit the service’s estimates to the President at least two months prior to the end of the fiscal year, and the President shall cause the estimates to be put before Parliament without alteration but with any recommendations made by the President.
4.11 Officers stationed in audited organizations
The Auditor-General may order any organization or body subject to audit by the Auditor-General to make available sufficient office space for the audit’s proper conduct during the audit’s duration.
The Auditor-General may require any person employed in his office who is to examine an organization’s accounts pursuant to this Act to comply with applicable security arrangements and to take any oath of secrecy required of persons employed in that organization, and such person shall comply with the requirement.
The Auditor-General shall station permanent employees at Parliament House to allow Parliament to carry out its responsibilities effectively in relation to the Auditor-General’s report to Parliament.
Outline the Audit Service Board’s composition.
Outline the Auditor General’s responsibilities as a member of the Audit Service Board.
This will indicate the conclusion that the Auditor-General is likely to reach during the assessment of financial statements.
In this session, we will examine the audit service and the audit general’s report on public sector services. The Audit Act 2000 is the primary regulatory tool for public sector auditing.
Ghana’s Constitution (1992) establishes the Ghana Audit Service as part of the Public Services. The President, in collaboration with the Council of State, appoints the Auditor-General.
His mandate is to audit Ghana’s public finances as well as all public offices (including courts, central and local government, and any public corporation or other organization formed by legislation. The President shall determine the Auditor-General’s salary and allowances.
Ghana’s public account, as well as the accounts of all public offices, including courts, central and local government administrations, all universities and similar public institutions, and any public corporation, other body, or organization constituted by an Act of Parliament,
The Bank of Ghana is required to submit an audited statement detailing its foreign exchange revenues and payments, as well as transfers within and beyond Ghana.
The Auditor-General is to audit public and other government accounts in whatever manner he deems necessary and determine whether they have been kept properly in his opinion. The corporation’s profitability, liquidity, stability, and solvency
Where applicable, the performance of the shares on the capital markets. Whether there was a delay in the payment of the government’s share of any announced dividend, if there was one. Any notable instances of fraud or loss, as well as the underlying causes?
The Auditor-General may order any organization or body that is being audited to make sufficient office space available for the audit’s proper conduct. Each individual working in his office who is responsible for auditing an organization’s accounts under this Act is required to adhere to appropriate security measures and to swear any applicable oath of secrecy.