Abstract
The purpose of the article is to address issues of auditing in the context of financial management as a contribution to good governance. Generally, not all local governments have effective and operational audit units and committees. As a result, auditing is not used as an essential element of good governance and this leads to bad audit outcomes like disclaimers and adverse opinions. The bad audit outcomes in local government have motivated the researcher to conduct the study on auditing. There are internal factors within the municipalities as well as external factors that are of interest and directed the researcher to have desire and commitment to make a contribution in this particular field of research. The key issues, amongst others, are principles of financial management, financial strategy, auditing functions such as forensic auditing, fraud auditing, forensic accounting and detection of fraud, including accounting systems and auditor’s role. This article will also attempt to reinforce existing theories and add value to local government financial discourse and good governance.
Highlights
Ijeoma et al (2013:307) argue that the values of accountability, transparency, people-oriented and focused government, principles of efficiency, effectiveness and economic use of resources are more significant in the local government sphere
The importance of auditing function in government has been recognized in so much that it has been enacted as a requirement for all government spheres
If auditing is properly established and structured in municipalities, and has sufficient resources, municipal managers as accounting officers can expect a number of benefits
Summary
The municipal manager and chief financial officer of a municipality and municipal entity must prepare and submit financial statements for auditing and produce annual reports. Section 121(1) demands that every municipality and every municipal entity must for each financial year prepare an annual report in accordance with this chapter. The council of a municipality must within nine months after the end of a financial year, deal with the annual report of the municipality and of any municipal entity. This article addresses issues of auditing in the context of financial viability and management.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
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 callMore From: Africa’s Public Service Delivery and Performance Review
Disclaimer: 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.
