Audit qualifications

An action plan

Imran Vanker

Provincial Auditor : Gauteng

Agenda

• Introduction

• Scope

• Qualifications

• Qualified audit opinion or disclaimer

• Emphasis of matters

• Appreciation

Introduction

• At April 2005, 95 of 284 audits finalised

• Of these, 58 (61 percent) were qualified, or disclaimed or adverse

• Only 27 were unqualified

• Among Top 50 municipalities, of the 23 completed, 7 were qualified

Scope – slide #1

• Constitution

• Public Audit Act

• Municipal Finance Management Act

• Audit outcomes of local government

Scope – slide #2

• Focus areas– Compliance– Fair presentation– Asset management– Debtors– Personnel expenditure– Document management– Internal audit– Control environment– Procurement– IT matters

Qualifications – action plan

• Understand the report

• Acceptance of the report

• Project team

• The right man or lady

• The right system

• Understanding root causes

Qualifications – action plan cont…

• Analysis of issues

• How to deal with auditors

• Retention of staff

• Upcoming developments

• Communication plan

• Compliance checklists

Qualifications – action plan cont…

• Development of a monthly framework

• Control self assessment

• Role of internal audit

• Year end reporting plan

• Review

• Reward and retain

Qualifications – action plan cont…

• Audit outcomes of local government

• Role of audit committee

• SCOPA and oversight committees

Questions

Imran Vanker

Provincial Auditor : Gauteng