Auditing Procedures and Process in the Public Sector

Contributions to Management Science, 2019

The overall process of evaluating the quality of internal auditing in the public sector is a systematic collection and processing of different types of data and information. Quantitative and qualitative data are transformed and processed by appropriate quantitative and qualitative methods, using the appropriate metric and non-metric parameters and parameters to characterize the status of the objects surveyed. We believe that for an in-depth examination and determination of the state of internal audit, all available data, facts and circumstances, on the basis of which the relevant quantitative or non-quantifiable information is derived, shall be taken into account. Limiting the scope of the study, based solely on quantitative or non-quantifiable data and information, is a prerequisite for incorrect and inaccurate outlining and formulating conclusions about the state of internal audit. The different types of information sources define both the appropriate forms and methods of internal audit, and respectively, they are a prerequisite for the output of certain results by which both the incentive system and the impact system for the implementation of the regulatory control function are being developed. The selected surveyed object are the municipalities that use budget credits and comply with the normative requirements for validation of the Internal Audit Unit, but for the assessment of the quality of internal audit it should be taken into account that the main functions of the Internal Audit Unit in the respective municipality are related to the implementation of the internal audit activity of all the structures, programs and activities. The respective Unit is also committed to auditing its own authorized officers, who use budget credits. The Internal Audit Unit of the respective municipality also performs an internal audit in the commercial companies under Art. 61 of the Commerce Law, as well as in the health care centres, which are 100% or mixed municipal companies, when there is no separate internal audit unit in these organizations. The Internal Audit Unit of the respective municipality is not authorized to carry out an internal audit of activities and processes in municipal companies with an established and approved internal audit unit. Due to the large scope of all audit units, meant to be a subject to internal audit under the approved strategic plans of the Internal Audit Unit, an exhaustive list should be applied (this list is normally

International Journal on Governmental Financial …, 2009

Zeszyty Naukowe SGSP

The process of managing institutions of the public finance sector should be subject to improvement and therefore should also be subject to ongoing control and periodic comprehensive audits. In units of the public finance sector, given the need of improving the efficiency of public tasks implementation, a significant role is played by management control, understood as overall measures taken to ensure the implementation of objectives and tasks in a legitimate, effective, economical and timely manner. A particularly important element of the management control system is the internal audit, i.e. an independent advisory and verification activity, the objective of which is to improve the operational efficiency of the organization and to bring added value to it. Technical progress, changing legal regulations and organizational forms of business entities and institutions of the government administration sector enforce constant adjustments of procedures for control processes and auditing acti...

SSRN Electronic Journal

This paper explores the value of financial statement auditing in the public sector. The study applies theory about auditing from the private sector as well as the public sector to explore ways in which public sector auditing can be expected to be valuable. It shows that there are a number of complementary explanations that can be applied to examine the value of public audit, including agency, signaling, insurance, management control, governance and confirmation explanations. The evidence from research and history is generally consistent with the agency and management control explanations. There is some support for the signaling and insurance explanations, while research evidence suggests that governance has differing impact in the public sector compared to the private. The confirmation hypothesis is also potentially relevant. Reviewing the history of the development of public sector auditing functions shows that at least some developments were consistent with explanations such as agency theory and management control. Auditing in the public sector is an area where more research is valuable. The paper concludes with a discussion of issues for further investigation.

This research work is on effective audit as a tool for improving institutional governance and accountability in the public sector. Data were gathered through questionnaire and hypotheses stipulated which basically questioned the existence of auditing departments, the activity of effective governance in the public sector and define the key element needed to maximize the value of the public sector audit provided to all levels of government. To test these hypotheses, Anovas was employed. We found out that the internal audit can effectively check fraud and fraudulent activities in the Imo State public sector and a significant number of internal audit departments functioning effectively exist. It is recommended that government should provide an adequately equip staff with electronic data processing and also maintain an environment within which internal auditors can have sufficient freedom to accomplish their task effectively.

Emerald Publishing Limited eBooks, 2022

Recent research has shown that there is a growing gap between academia and practice in public sector accounting, auditing and accountability. This is a particularly important issue in the context of public services and policies, where a number of emerging issues and trends, such as fiscal sustainability, global climate change, demographic changes, equity and inclusive growth, government transparency, citizen participation and engagement, political polarisation and fragmentation, the growth of false information in social media, and new forms of public-private-non-profit partnership, as well as technological advancements, such as big data, block-chain, and digital transformation, bring about new challenges and require innovative, timely, and effective solutions. To strengthen the debate between academia and practice, Emerald Studies in Public Service Accounting and Accountability aims to provide a forum where academics, practitioners, and policy makers can interact and promote new ideas related to hot topics and emerging trends. Through innovative use of different formats, such as short-form books, in-depth case studies, and debates, this series will foster a dialogue between those in academia and those in practice, both leading to the advancement of research in this field and increasing its impact.

This Introduction to the Edward Elgar Handbook of Accounting, Accountability and Governance puts the collection of chapters making up the Handbook into context. The general philosophy of the Handbook is that accounting, accountability and governance go beyond being technical practices to be learned, adopted and repeated, and must be studied as social and moral practices. The chapters making up the five parts of the Handbook are outlined. Part I considers past and present perspectives on accounting, accountability and governance. Part II examines various mechanisms for accounting, accountability and governance, including audit, assurance and different forms of accounting. Part III considers accounting, accountability and governance in diverse contexts and sectors, including junior stock markets, emerging economies, higher education, the public sector, hybrid organizations and Islamic financial institutions. Part IV reviews some new perspectives on accounting, accountability and governance, including counter accounts and spotlight accounting, as well as the application of ideas of governmentality to accounting, accountability and governance. Part V considers some future directions and notes how the recent COVID-19 pandemic has reshaped accounting, accountability and governance relationships and mechanisms. The Introduction finishes with some indications of how the Handbook may be used in teaching and research. INTRODUCTORY REMARKS Accounting, accountability and governance are interrelated. Our statement above seeks to provide an appreciation of the fit of these three major elements of human life. Which of these elements started first? This question resembles the often-posed question in everyday life: "What came first-the chicken or the egg?" The rooster, however, barely gets a mention. According to Pilcher and Gilchrist (2019, p. 1), in their volume on accounting, accountability and governance in the public sector, "accounting is where it begins". We are not willing to make a claim of this kind. What is important for us in editing this volume for an international audience is to instigate, assemble and provide a range of examinations of how accounting, accountability and governance interrelate as the three sides of a triangle. Fundamentally, accounting performs accountability, accountability nurtures governance, governance presumes accounting. To elaborate on our one-sentence summary above, accounting is not just concerned with accountability, but accountability contributes to an understanding of the need for accounting in organizations and societies. On the other hand, governance is more than accounting can deliver alone but is designed to draw on accounting for governance to be enabled and sus

EUROPEAN RESEARCH STUDIES JOURNAL, 2018

The main goal of this study is to develop an accounting concept for the public administration sector of the Russian Federation with state (municipal) institutions as an example. To fulfill this task, the specifics of the state (municipal) institutions were explored, the international practice of arranging accounting in the public sector was analyzed, and the current state of the information and administration function of accounting in the institutions under study was examined. Because of the analysis, specific proposals for the development of the information function of accounting were developed through the application of the accounting policy template and the development of management accounting for obtaining information for internal users. Regarding the development of the control function of accounting in state (municipal) institutions, the use of a risk map, a register of risks and other administration tools and procedures was justified. The scientific novelty of the study is in systematization of the problems existing in the formation of the accounting system in state (municipal) institutions and in the development of proposals to improve its efficiency.

Good governance relates to the exercise of legitimate authority in the conduct and management of public affairs and resources so as to guarantee the realization of sustainable human development. The true test of ‚good governance‛ is the degree to which the institutions of governance effectively guarantee the right to health, adequate housing, sufficient food, quality education, fair justice and personal security. Governance is essentially the management of the budget process; and where budgets are not well prepared, monitored and executed the goals of governance may not be attained. Thus, Budgeting, Auditing and Governance, interlock in a cycle of accountability that preserves healthy Executive-Legislative interface, and ensures effective and efficient public services. Good governance must therefore have its roots in the quality of the institutions that regulate tax, manage public financial systems, define audit processes, regulate oversight functions of government and legislature, and implement budget system.

2005

The purpose of this paper is to evaluate the extant Anglo-American literature on 'performance auditing for the public sector', in order to identify the socio-economic and political themes that influenced the emergence of public sector performance auditing. The paper also seeks to develop an understanding of the role and practice of performance auditing in the public sector. Common catalysts for change appear to rest in the influence of the local governmental senior auditor (e.g. Auditor General), the existence of public sector reform and changes in standardisation generally. The traditional role of the public sector auditor has undergone significant change over time. In particular, the scope of the public sector audit now exceeds the expectation that the auditor only check for regulatory and procedural compliance. It is now expected that the auditor enhance accountability in the management of public sector resources. The perceived objectives of performance auditing (economy,...