Abstract
The study seeks to examine the espousal of the combined assurance model in South Africa’s public sector, since there is not solitary autonomous unit that offers assurance in seclusion but various units add to the assurance progression. The study is grounded on stewardship theory in which various concepts of stewardship imply it to be a function of governments’ accountability for the wellbeing of citizens. This research study followed a qualitative research approach in which data were analyzed qualitatively based on an interpretative philosophy which examined meaningful and symbolic content of qualitative data from general reports on the provincial audit outcomes for the period (2014-2015). It was concluded that the level of appreciation of the combined assurance model and assurance provision in South African public sector is commendable, although there is still a need to improve and fully implement the model so as to attain good governance through stewardship advance. To that end, the governing body in South Africa’s public sector needs to augment its monitoring of harmonized and all inclusive approach in internal control systems, risk management and compliance issues. This serves in the best legitimate interests and expectations of the “inclusive stakeholders” via embracing of stewardship approach. Keywords: combined assurance, public sector, stewardship, Auditor General. JEL Classification: E61, H20
Highlights
Good corporate governance principles have been recently advocated for in the public sector and the key role players have been given the major challenge to uphold and steer its passable espousal
The audit committees in South Africa’s public sector have their mandate through the Public Finance Management Act (PFMA) since 1999, the Municipal Finance Management Act (MFMA) since 2003 and the Treasury regulations issued in terms of the PFMA give effect to provisions of the Act dealing with audit committees (PWC, 2010)
It is expected that the management and leadership of the public sector institution and those that perform an oversight or governance function should work towards improving the key controls, addressing the root causes and ensuring that there is an improvement in the key risk areas
Summary
Good corporate governance principles have been recently advocated for in the public sector and the key role players have been given the major challenge to uphold and steer its passable espousal. An independent audit committee satisfies a crucial responsibility, as it ensures the integrity of integrated reporting and internal financial controls, and classification and management of financial risks. It is, highly necessary for the audit committee to be aptly skilled and qualified in dealing with oversight responsibilities of the various assurance providers to the utmost extent. The audit committee is a legislated responsibility instrument in the public sector and it is argued that if this committee performs effectively, it will add to enhanced corporate governance (Van der Nest, Thornhill & de Jager, 2008)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
