PASAI Report : Analysis of audit issues and audit recommendations for 20 PASAI members
Objectives: This report examines the main audit issues raised in the audit reports from the financial audit of the Government financial statements for the most recent three years in 20 PASAI countries and states. It also examines management letters or internal control recommendations, and is supported by reference to SAI PMF and PEFA reports where available. The questions examined are, what are the issues reported by SAIs? What is the significance and impact of those issues on government operations and public sector financial management? Taking into account those issues, the report develops proposals and a reporting model. Procedures: The procedures used were analysis of the three most recent whole-of-government financial reports and related management letters, along with examination of available PMF and PEFA reports. The report also includes analysis using a model of public value and considering external influences. Summary of issues raised by SAIs: We concluded that there are five main causes of audit issues, namely internal control failures; misstatements of liabilities; problems with taxation systems; follow-up of recommendations; and the timeliness of financial reports and completion of audits.. Externally-provided audits and overall effectiveness are also commented on.External influences: The project also includes examining external influences on SAIs and on their effectiveness. Factors that are associated with coercive external influences appeared to have a positive effect. Influences leading to greater uncertainty were associated with greater difficulty in providing high quality audits, and normative influences on accounting and auditing did not appear to make a difference. Causation: The SAIs’ comments about the causation of audit issues raised and of their recommendations not being adopted included frequent references to staffing issues, including the number of staff employed in accounting functions, and their capability. There were also some references to government entities not agreeing to adopt recommendations. Proposals. The report proposes: (1) PASAI helping SAIs to increase their PMF and PEFA scores; (2) encouraging SAIs to follow PMF and PEFA recommendations; (3) publication of an annual report by each SAI; (4) effective use of Parliamentary Public Accounts Committees as a mechanism for monitoring and ensuring quality; (5) government responses being included in management letters; (6) an Office of the Government Accountant in each country or state with the objective of raising the quality of accounting records and reports; (7) reporting Key Audit Matters in the audit reports; and (8) adopting a framework where Material Weaknesses are reported each year. The reporting framework recommended in this study includes a summary by PASAI of key information that allows SAIs to be compared, and avoids confidentiality issues. The report also suggests a detailed format for reporting information about each SAI. Link to the full report: https://www.pasai.org/audit-issues-report
Year of publication: |
2023
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Authors: | Hay, David ; Cordery, Carolyn J. ; Taufa, Sione |
Publisher: |
[S.l.] : SSRN |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | In: Pacific Association of Supreme Audit Institutions (PASAI), 2022 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 2022 erstellt Volltext nicht verfügbar |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014262668
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