Communication Theory – Meaning and Examples
Imagine a world without communication! You have a brilliant idea with you but don’t possess the power of communication. You have a strong desire for something, but cannot express your desires. Life would be dull, blank and the world would not be worth living. Such is the power of communication. Communication is the essence of […]
Basic Workplace Ethics for an Organization
Let us go through some workplace ethics: Rules and regulations ought to be same for everyone. Everyone needs to attend office on time irrespective of their designation, distance of their home from the workplace, salary or status. An individual cannot come to office late just because he is the team leader and his team is […]
Different Types of Communication
Let us now go through the various types of communication: Verbal communication Verbal communication is a type of communication where the information flows through verbal medium like words, speeches, presentations etc. In verbal communication the sender shares his/her thoughts in the form of words. In organizations, individuals communicate verbally among each other in the form […]
Credit Rating Terminology
Credit rating is an important and almost central part of the overall credit risk management function in any organization. Every major organization around the world has implemented credit rating in some form. In many companies, credit rating has been overtaken by credit scoring. Instead of providing a rough range about the creditworthiness of a prospective […]
Political Revolutions
The Nature of Political Revolutions An often-overlooked aspect of the modern political economy is the capacity for change and renewal that is inherent in the way modern democracies work. Despite reversals of democracy where world over we are witnessing the retreat of democracy, there have been notable exceptions to the norm wherein some social and […]
Audit is an instrument, a tool of financial control, which is employed by the public or private sector or an individual to safeguard itself against fraud, extravagance and more importantly to bring credibility to the audited.
According to International Organization of Supreme Audit Institutions audit is defined as “Evaluation or examination of systems, operations and activities of a specific entity, to ascertain they are executed or they function within the framework of certain budget, objectives, rules and requirements.” This is a modern definition of audit in Public sector and does not constrict itself with only cash audit, which was the case originally.
For sound and effective functioning of government and to ascertain that the benefit of public funds being used, reach the lowest strata of society and to every individual, audit is an indispensable tool.
It helps secure accountability of the executive to the Parliament and towards the public in general. The legislature can exercise control over the executives and verify that the public resources have been utilized responsibly, for the purpose intended and funds raised through various sources like taxes reach government fully.
There are a few International bodies which recommends agreed upon auditing practices, reports and requirements. They are:
In accordance with the target objective several kinds of audit can be defined in Public Sector.
Financial and Audit of Legality concordance were originally grouped together to form Audit of Regularity and rest other audits were termed as Operational Audit.
After audit is complete it is necessary to file a report which has adequate representation of facts and figures, adequate content, adequate preparation, adequate opinion for the target audience to understand it better and enough publicity for the report.
Audit must be treated as an instrument for exercising control over processes, systems, finances and individuals to make governments and governing bodies more responsible towards the public and its resources, but it cannot be considered as an end unto itself.
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