What is purpose of a public sector audit? every audit work has a purpose of performing so as the public sector audit, but before the purpose let first look at the meaning of auditing
Summary of Contents
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.
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.
WHAT IS PURPOSE OF PUBLIC SECTOR AUDIT?
The main purpose or 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 purposes or objectives, the following three sub-objectives need to be achieved;
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
To assure parliament as to the fact that, the published accounts resulting from the organizational transaction in using the appropriated fund is reliable.
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.