PUBLIC PROTECTOR OF SA
T
he International Federation of Accountants (IFAC) and the Chartered Institute of Public Finance and Accountability (CIPFA 2004:10–11) held that the main function of governance structures in the public sector is to ensure that the institutions that are under the control of the state carry out their responsibilities in a proper manner and achieve the intended outcomes in the best interest of the public.
Public sector audit is a vital activity within democratic states. It underpins the relationship between the government and the governed, the executive and the legislature, and different parts of the government. However, recent audit reports of the Auditor-General show that there has been little improvement in the audit outcomes of public sector institutions and that they, in fact, continue to be non-compliant with relevant legislation, resulting in irregular, fruitless and wasteful expenditure (Auditor-General 2016–2021). Some of these challenges and weaknesses include failure to maintain effective internal controls for good corporate and financial governance, inadequate identification and management of financial risks, the inability to ensure that the institution implements and fully complies with legislative requirements, inadequate management of conflict of interests and ethical performance, as well as the inability to ensure the integrity of financial information.
KHOLEKA GCALEKA Acting Public Protector Republic of South Africa
PUBLIC SECTOR AUDIT IS A VITAL ACTIVITY WITHIN DEMOCRATIC STATES 8
Advancing Auditing &Accountability
www.saiga.co.za
