Kế toán, kiểm toán - Chapter 16: Audit and assurance services in the public sector

CHAPTER 16AUDIT AND ASSURANCE SERVICES IN THE PUBLIC SECTOR1Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettAUSTRALIAN SYSTEM OFGOVERNMENTThree tiers:FederalStateLocal (municipal councils)2Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettACCOUNTABILITYParliament approves use of various resources.The management of public sector entities is entrusted with public resources on a stewardship basis.Reports are prepared showing use of resources. Public sector auditors provide assurance on reports.3Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettCYCLE OF ACCOUNTABILITY4Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettGOVERNMENT ACCOUNTINGAustralian accounting standards apply to public sector entities.Government departments that are reporting entities are required to prepare general purpose financial reports on an accrual basis.5Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettSTRUCTURE OF PUBLIC SECTORAUDITING PROFESSIONCommonwealth Auditor-General, through Australian National Audit Office (ANAO), is responsible for audit of Commonwealth government departments, statutory authorities and government corporations.Each State and Territory has an Auditor-General who has similar responsibilities at the State and Territory level.6Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettAUDIT MANDATEAuditor-General’s comprehensive auditmandate involves:Performance auditing; andRegularity auditing:Financial report auditingCompliance auditing7Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettAUDITING STANDARDS IN THE PUBLIC SECTORAudits should be performed in accordance with Australian auditing standards.Standards should be applied to the extent that they are not inconsistent with or unnecessary to public sector audit mandate.8Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettREPORTING DUTIESAudit report should state whetherfinancial report:Is prepared in accordance with Finance Minister’s orders; andGives a true and fair view.Requirements are virtually identical to Corporations Act requirements.9Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettADDITIONAL REPORTING MATTERSAdministrative operationsSignificant breaches of legislationPublic money not correctly accounted forAccounting and other records not properly maintainedPropriety and probity of transactionsRecommendations to improve administrative processEconomy, efficiency and effectiveness of administration10Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettINDEPENDENCECritical to audit functionAuditor-General appointed by Governor-General for a period of 5-7 years and can only be removed by a recommendation of both Houses of Parliament in the same session11Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettPERFORMANCE AUDITING DEFINEDA performance audit is an independent, expert and systematic examination of themanagement of an organisation, programor function for the purposes of:Assessing performanceIdentifying opportunities for improvementDeveloping recommendations for improvement or further action12Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettOBJECTIVES OF PERFORMANCE AUDITTo provide Parliament with assurance of the quality of management of public resourcesTo assist public sector managers by identifying, promoting and protecting better management practices13Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettPERFORMANCE AUDITMight include a review of:Use of human, financial and other resourcesInformation systems, performance measures and monitoring arrangementsProcedures followed by audited bodies for remedying identified deficienciesEmphasis is on economy, efficiency and effectiveness of management and procedures.14Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettECONOMY DEFINEDAcquisition of financial, human, physical andinformation resources of appropriate qualityand quantity at the lowest reasonable cost.(Ref. AUS 806.03)Examples of economy include whetherthe entity has:Followed sound procurement practicesAcquired the appropriate type, quality and amount of resources at the right time and for the lowest cost15Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettEFFICIENCY DEFINEDUse of a given set of resource inputs tomaximise outputs, or the use of minimuminput resources for a predetermined level ofoutput. It is essentially a resource usageconcept. (Ref. AUS 806.04)Examples of efficiency include whether the entity has:Prevented idleness and overstaffingPrevented duplication of effort by employees16Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettEFFECTIVENESS DEFINEDThe achievement of objectives or other intendedeffects of activities. It focuses upon the results oroutcomes of resource usage and organisationaloperations. Therefore, effectiveness is ends oriented rather than means oriented. (Ref. AUS 806.05)Examples of effectiveness include:An audit of a program to determine whether it has achieved its objectiveAn analysis of the relevance of an entity's activities to its objectives17Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettRELATIONSHIP BETWEEN ECONOMY, EFFICIENCY AND EFFECTIVENESSRef.: Figure 16.2 (p. 700)18Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettSTAGES OF A PERFORMANCE AUDITPlanningPreliminary studyImplementationReportingFollow up19Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettCONCEPTUAL FRAMEWORK FOR STAGES IN A PERFORMANCE AUDITRef.: Figure 16.3 (p. 702)20Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettANALYSING EVIDENCE, DEVELOPING FINDINGS AND RECOMMENDATIONSRef.: Figure 16.4 .(p. 704)21Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettREGULARITY AUDITSInvolves attestation of financialaccountability and includes elements ofboth:Financial report audits (already discussed)Compliance audits22Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger SimnettCOMPLIANCE AUDITSTwo primary forms:To express an opinion on whether an entity has complied with relevant requirements or a specific requirement, such as legislation, regulations, directives or municipal by-laws To report instances of non-compliance with relevant requirements observed during the course of discharging other audit responsibilities23Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & SimnettSlides prepared by Roger Simnett