HOW DOES AUDITING BOOST ACCOUNTABILITY?
Accountability is the very essence of the Constitution of the Republic of South Africa (Act
No. 108 of 1996). (Fonseca and Jorge, 2020) refer to accountability as “making public
managers permanently responsible for the actions taken in connection with use of the power
given them by the society”. Therefore, accountability is an essential element of good
governance, holding decision-makers responsible and avoiding the misuse of power. Whereas
an audit is the review of an organization's financial report as provided in its annual report by
someone outside of that organization.
Auditing is necessary to ensure the financial integrity and accountability of public sector
entities. Auditors examine an organization's financial statements to offer an impartial
judgment on whether they are produced in compliance with relevant accounting rules and are
free of major miss-statements. A high-quality audit helps uncover remedy mistakes,
irregularities, and possible fraud, ensuring that the financial statements offer an accurate and
fair picture of the organization's financial status, performance, and cash flows. (Fonseca and
Jorge, 2020). Auditors boost accountability by:
Transparency
Transparency refers to the government's openness towards citizens. Effective governance
involves disclosing important information to stakeholders to ensure they have accurate
information about the government's operations and performance. As a result, the
government's choices, activities, and transactions are transparent. Governments often require
public records to be circulated and meetings of elected officials to be disclosed, including
decision-making information. Although protecting information from disclosure is sometimes
in the public's best interests, such as when national security, criminal investigations, or a
private company's proprietary information are jeopardized, transparency of government
actions and information is critical in public oversight. (Nzewi and Musokeru, 2014)
Reliable information regarding an organization's financial performance and position is made
available to stakeholders, including creditors, investors, and the public, through audited
financial statements. Greater responsibility to stakeholders is fostered by transparency, which
increases trust and confidence in the organization's activities and boosts accountability.
Good governance demands auditing actions that strengthen the credibility of public
management, promote reliable and responsible reporting, transparency, and accountability,
and increase stakeholder capacity to exercise control over management board actions, holding
them accountable. Auditors in the public sector should promote transparency and credibility
in management, achieve strategic objectives, and adhere to ethical and legal norms.
(Msindwana and Ngwakwe, 2022)
Financial Responsibility and Preventing Fraud
According to Msindwana and Ngwakwe (2022) research government audits are critical to
fostering financial accountability within public entities. Auditors assist in identifying
instances of wasteful expenditure, mismanagement, or incorrect resource allocation by
inspecting the use of government funds. These audits promote openness and accountability,
which encourages government institutions to make better financial decisions and be more
responsible guardians of public funds. Government audits are also useful in detecting and
preventing fraud. They limit the likelihood of corruption, protect public resources, and
guarantee that public officials and staff follow ethical guidelines. Auditors detect fraudulent
activity or abnormalities by checking internal controls and reviewing financial transactions.
One specific issue we look at is the fraudulent that involves the South African state-owned
firm Eskom, which has been accused of corruption and incompetence. The Auditor General's
investigations revealed inconsistencies in Eskom's procurement processes and financial
management methods, prompting greater scrutiny and demands for responsibility from
government officials and the public. (Jamane, 2020)
Government audits can also assist uncover and prevent fraud. They lower the danger of
corruption, protect public resources, and guarantee that public officials and staff follow
ethical guidelines. Auditors identify fraudulent activity or abnormalities by reviewing
internal controls and examining financial transactions.
Consequently, it can be concluded that auditing is becoming more and more strategic in terms
of transparency in the rendering of accounts, takes a social obligation in terms of the
information given to the stakeholders of the various sectors of activity, both public and
private, and is becoming more and more significant in terms of encouraging the
accountability of multiple organizations.
REFERENCE LIST
1. Fonseca, A. dos R. and Jorge, S. (2020). The Role of Internal Auditing in Promoting Accountability in
Higher Education Institutions. Revista De Administração Pública, 54(2), pp.243–265.
doi:https://doi.org/10.1590/0034-761220190267x.
2. Nzewi, O. and Musokeru, P. (2014). A Critical Review of the Oversight Role of the Office of the
Auditor-General in Financial Accountability. Africa’s Public Service Delivery and Performance
Review, 2(1), p.36. doi:https://doi.org/10.4102/apsdpr.v2i1.42.
3. Republic of South Africa. (1996) Constitution of the Republic of South Africa. Pretoria: Government
Printer.
4. Msindwana, M.C. and Ngwakwe, C.C. (2022). Internal Audit Effectiveness and Financial
Accountability in the Provincial Treasuries of South Africa. International Journal of Economics and
Financial Issues, 12(3), pp.86–96. doi:https://doi.org/10.32479/ijefi.13017.
5. Jamane, L. (2020). Masters Research In Public Management and Governance. pp.20–78.
