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Reputation promise/mission. The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country's democracy by enabling oversight, accountability and governance in the public sector through auditing, thereb
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2. Reputation promise/mission
3. Oversight 3 NOTE TO THE TRAINERS
This picture has been taken from the NT framework for managing program performance information and illustrates so well where oversight begins.
This same diagram can be utilised to demonstrate how oversight can influence the audit opinion.
Starting where the department is responsible at the Strategic Planning Level. NOTE TO THE TRAINERS
This picture has been taken from the NT framework for managing program performance information and illustrates so well where oversight begins.
This same diagram can be utilised to demonstrate how oversight can influence the audit opinion.
Starting where the department is responsible at the Strategic Planning Level.
4. Different Types of Audits Conducted Mandatory Audits
Regularity Audit
Report on the Annual Financial Statements
Report on other and legal and regularity requirements
Predetermined Objectives
Compliance with Laws and Regulations
Internal Control deficiencies pertaining to the above
Discretionary Audits
Investigations
Special Audits
Performance Audits
5. The different types of Audits conducted
6. Audit of Predetermined Objectives NOTE TO THE TRAINERS
Auditing of predetermined objectives can be defined as an annual audit of reported actual performance against predetermined objectives. This is an integral part of the annual regularity audit, confirming the credibility of the reported performance information in the annual reports of government entities.
Performance auditing can be defined as an independent evaluation of the management measures instituted by a government entity to ensure the economical procurement and efficient and effective utilisation of resources. The key evaluation concepts can further be defined as follows:
Economical – to procure resources of the right quality in the right quantities at the right time and place at the lowest possible cost.
Efficient – to achieve the optimal relationship between the output of goods, services or results and the resources used to produce them.
Effective – to achieve policy objectives, operational goals and other intended effects.
The insight gained through auditing and analysing the audit outcomes to the level of root causes is shared with stakeholders through audit reports, creating foresight in the process of strategic planning, enhancing good governance and service delivery in the country.
NOTE TO THE TRAINERS
Auditing of predetermined objectives can be defined as an annual audit of reported actual performance against predetermined objectives. This is an integral part of the annual regularity audit, confirming the credibility of the reported performance information in the annual reports of government entities.
Performance auditing can be defined as an independent evaluation of the management measures instituted by a government entity to ensure the economical procurement and efficient and effective utilisation of resources. The key evaluation concepts can further be defined as follows:
Economical – to procure resources of the right quality in the right quantities at the right time and place at the lowest possible cost.
Efficient – to achieve the optimal relationship between the output of goods, services or results and the resources used to produce them.
Effective – to achieve policy objectives, operational goals and other intended effects.
The insight gained through auditing and analysing the audit outcomes to the level of root causes is shared with stakeholders through audit reports, creating foresight in the process of strategic planning, enhancing good governance and service delivery in the country.
7. The Regularity Audit Process
8. Format of Auditor’s report Report on the Financial Statements
Report on other legal and regulatory requirements
Findings on the report on predetermined objectives
Findings on compliance with applicable laws and regulations
Internal control deficiencies
Information on other audits conducted
Investigations
Agreed upon procedures
Performance audits
9. The Different Audit Opinions Unqualified with no other matters (Clean)CSIR-AR.pdf
Unqualified with other matters
Findings on Predetermined objectives
Reported on non compliance Final Audit report signed DST.pdf
Qualified
“Except for”
Adverse
Disagree
Disclaimer
Limitation due to insufficient supporting documentation
10. 10 Science and Technology – PFMA audit outcomes 2009-10
11. Section B: Audit of predetermined objectives Required in terms of Sections 4, 20 and 28 of the Public Audit Act
Findings on whether reported (actual) performance information is valid, accurate and complete. Whether a performance management process exist with proper controls to enable relevant and useful reporting on and oversight of service delivery
Audit conclusion included in the management report of an entity on the usefulness (SMART) and reliability (valid/ accurate/ complete) of reported information relating to the performance of the entity against predetermined objectives
12. 12 Incomplete reported information
Department of Science and Technology
Reported information inconsistent
African Institute of South AfricaIncomplete reported information
Department of Science and Technology
Reported information inconsistent
African Institute of South Africa
13. 13
14. Compliance with Laws and Regulations Reporting is limited to key legislation e.g.
Public Finance Management Act (PFMA),
Treasury Regulations (TR)
Companies Act
Specific enabling legislation(if any), eg HSRC Act
Material instances of non-compliance are reported per Act
15. Internal Control Deficiencies in internal control relevant to the audit of the financial statements, predetermined objectives and compliance with laws and regulations are reported under the three fundamentals of effective internal control.
Leadership
Financial and Performance Management
Governance
16. Internal Control (cont.) Leadership
Tone at the top creating an environment favourable to good financial management and service delivery
Identify key controls aimed at achieving the organisation’s objectives
Assessing skills / competencies of finance staff, ensuring the right staff mix and managing consultants to ensure effective skills transfer
17. Internal Control (cont.) Financial and Performance Management
Monthly financial statements and quarterly performance reports, plus continuous monitoring of both
Implementation of sound financial and performance management systems
Proper controls over documentation to ensure that they are easily retrievable
Operating basic internal controls for an efficient financial and performance management environment
18. Internal Control (cont.) Governance
Adequately resourced and effective functioning of internal audit and audit committee
Maintenance of effective risk management strategies, including fraud prevention plans
19.
Questions?