scholarly journals An investigation into the effectiveness of audit committees

2017 ◽  
Vol 13 (2) ◽  
pp. 46-54 ◽  
Author(s):  
Zandile Virtue Dlamini ◽  
Emmanuel Mutambara ◽  
Akwesi Assensoh-Kodua
Keyword(s):  
Financial Management ◽  
Local Governments ◽  
Audit Committee ◽  
Best Practice ◽  
Good Governance ◽  
Target Population ◽  
Audit Committees ◽  
Quantitative Methodology ◽  
Kwazulu Natal ◽  
Areas Of Concern

The fundamental purpose of this study was to investigate the effectiveness of audit committees in the eThekwini municipality within the province of KwaZulu Natal. The target population for the study was all the standing and audit committee members totalling 20, thus taking a census-based approach. The descriptive sections adopted a positivist paradigm employing quantitative methodology was used to examine information through techniques that revealed patterns, trends and relationships. Hence, a mixed methodology was the case in this study. The study revealed that the eThekwini audit committee was generally effective in discharging its oversight role in the council, though there were areas of concern, which include control frameworks and financial management to improve corporate governance. The study revealed that there was, to a large extent compliance with legal requirements regarding audit committees, as well as best practice processes. It is therefore important to point out that, this study outlines good practices of audit committees that are worthy of emulation and further improvement by the research community as a framework for good governance in local governments

The Audit Committee Anomaly in South African Local Governance

Politeia ◽  
2019 ◽  
Vol 38 (2) ◽  
Author(s):  
Lourens Jacobus Erasmus ◽  
Thabo Matsimela
Keyword(s):  
South African ◽  
Audit Committee ◽  
Best Practice ◽  
Good Governance ◽  
Local Governance ◽  
Audit Committees ◽  
Municipal Finance ◽  
Finance Management ◽  
Theoretical Perspectives

Stakeholders of organisations have to rely on the credibility and effectiveness of governance by management and oversight structures, such as the audit committee, to protect their interests. Drawing on the agency theory, the role of the audit committee is globally accepted to be one of oversight and monitoring. In contrast, the Municipal Finance Management Act requires South African municipal audit committees to be independent advisory functions, invoking the institutional theory in terms of symbolic display. In this article the research objective is to argue the anomaly in the Municipal Finance Management Act regarding audit committees' role, given that this deviates from the globally accepted norm. This conceptual article follows an interpretive approach, which includes a document analysis, firstly to establish the prevalence of the audit committee advisory expectation and, secondly, to argue from theoretical perspectives, whether the audit committee as an advisory function, has validity. The findings suggest that legislators should consider amending the Municipal Finance Management Act to reflect audit committee best practice or change the name of the municipal audit committee to that of an advisory committee to avoid misleading local communities in terms of what may be perceived as good governance practice. This article thus informs policymakers of an apparent governance anomaly in South African legislation.

scholarly journals Establishing the relationship between an effective audit committee and infusion of a good control environment

2017 ◽  
Vol 13 (3) ◽  
pp. 52-58 ◽  
Author(s):  
Zandile Virtue Dlamini ◽  
Emmanuel Mutambara ◽  
Akwesi Assensoh-Kodua
Keyword(s):  
Audit Committee ◽  
Good Governance ◽  
Good Control ◽  
Working Environment ◽  
Audit Committees ◽  
Control Environment ◽  
Public And Private ◽  
Control Structures ◽  
Effective Performance ◽  
The Relationship

Audit Committees are a vital component of accountability and good governance for any serious organisation and have progressively been perceived as an integral part of modern control structures and control practices in both the public and private sectors. However, Audit Committees can only discharge such gigantic responsibilities in a conducive environment to provide its effective performance of certain key functions in the areas of oversight of risk management, reporting, and internal controls. Nonetheless, the enablement of such conducive environments has become a challenge to many Audit Committees. It is against this background that this study investigates the relationship between an effective audit committee and infusion of a good control environment. The study used structured and unstructured questions to investigate population comprising standing committee members and Audit Committee members. Thus this study made use of a mixed methodology to collect quantitative data as well as reviewing audit documents, such as, the Audit Committee Charter and minutes of meetings in order to ascertain the environment under which such august practices are performed. The outcome concludes that the Audit Committee which was selected for the study has the good working environment.

scholarly journals KOMITE AUDIT UNTUK MENINGKATKAN TATA KELOLA PEMERINTAHAN DAN PENYAJIAN LAPORAN KEUANGAN DALAM RANGKA PENINGKATAN KINERJA PEMERINTAH DAERAH (STUDI KASUS PEMERINTAH DAERAH KABUPATEN BELITUNG)

2014 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Alexander Ikhsan ◽  
Antar MT Sianturi
Keyword(s):  
Local Government ◽  
Audit Committee ◽  
Good Governance ◽  
Financial Statements ◽  
Financial Statement ◽  
Audit Committees ◽  
Government Performance ◽  
Qualitative Descriptive ◽  
Improved Performance

This research is a qualitative descriptive study entitled “Audit Committee to Improve Governance and Financial Statement in order to Improved Performance of Local Government (Case Study of District Government Belitung)”. The purpose of this study was to determine how much influence of the audit committee in the local government in order to improve governance and the quality of local government financial statement, and its associations with local government performance. Measuring the importance of the audit committee, which was measured using interviews with 15 respondents who have an influence on governance in the Belitung District Based on these results, we can conclude that audit committees in local government will improve the governance and the quality of local government financial statements presentation. And from the results of this study also found that the good governance and quality of local government financial statements presentation will improve the overall local government performance

E-Governance and Natural Hazards in Mozambique

2015 ◽  
pp. 253-268 ◽  
Author(s):  
Avelino Mondlane ◽  
Karin Hasson ◽  
Oliver Popov
Keyword(s):  
Decision Making ◽  
Strategic Planning ◽  
Information And Communication Technologies ◽  
Local Governments ◽  
Best Practice ◽  
Good Governance ◽  
Communication Technologies ◽  
Information And Communication ◽  
Decision Making Processes ◽  
The Impact

Strategic planning is a decisive process toward sustainable development for any organization. Mozambique has developed many tools toward good governance, among which Poverty Alleviation Strategy Paper (PARPA) is an umbrella. PARPA includes different key decisive segments of society, particularly the Information and Communication Technologies (ICTs) as the pool for development. This chapter investigates to what extent e-Governance, particularly the development of strategies based on ICTs, can contribute to minimize the impact of floods at local governments by addressing best practice and decision-making process. The authors address backcasting methodology as an approach to consider in a participatory strategic planning for long-term decision-making processes. They use Chókwe District as a showcase where e-governance has an impact in mitigating and preventing the impact of floods.

Enhancing accountability: should regulations similar to sarbanes-oxley be expanded to the local sector?

2008 ◽  
Vol 20 (4) ◽  
pp. 439-465 ◽  
Author(s):  
Howard A. Frank ◽  
Douglas R. Fink
Keyword(s):  
Private Sector ◽  
Financial Reporting ◽  
Financial Management ◽  
Local Governments ◽  
Audit Committee ◽  
Municipal Finance ◽  
Public And Private ◽  
Sarbanes Oxley ◽  
Local Sector ◽  
Public And Private Sector

In light of the increasing convergence between public and private sector accounting models, should local governments be required to adopt requirements similar to the Sarbanes-Oxley Act (SOX)? Survey results from 42.2% of municipal finance officers from Ohio and Florida suggest they embrace in concept the enhanced accountability resulting from adopting principal officer certification (POC) and the independent audit committee (IAC) for larger cities. However, like their counterparts in the private sector, they have reservations regarding the benefits of implementation relative to costs. Theories of innovation diffusion and planned behavior provided a theoretical framework for multivariate analysis. The contradictions in our findings may relate to respondents’ reservations regarding the private sector financial reporting model that is becoming increasingly prevalent in public financial management.

scholarly journals Evaluation of the audit committees of government ministries in Namibia: Their compositions, functions and regulations

2015 ◽  
Vol 4 (4) ◽  
pp. 147-159
Author(s):  
Angela Winnie Kandandu ◽  
Edwin Beukes ◽  
Olumide Henrie Benedict
Keyword(s):  
Internal Control ◽  
Audit Committee ◽  
Best Practice ◽  
Secondary Data ◽  
Audit Committees ◽  
Primary Data ◽  
The Public ◽  
The Government ◽  
Code Of Corporate Governance ◽  
Voice Recorder

The aim of the underlying study to this paper is to evaluate the audit committees in the government ministries in Namibia; by assessing their composition, the function and regulations that govern committees. The study used a qualitative approach of inquiry. A purposive sampling method was used as the researcher selected ministries with audit committees. Thematic and content analysis was used in this study. Both primary and secondary and data were used. On primary data, interviews were conducted and recorded with a voice recorder. Secondary data was during the review of existing literature on the subject. The study found that from the 4 government ministries with audit committees, only one ministry consisted of independent members as well as an independent chairperson, while 3 ministries are chaired by members within their organisations. There was clear evidence of lack of accounting / financial /auditing competence among the committee members. This trend is contrary to the best practice which requires that the chairperson of the audit committees be independent of the ministry as well as the members of the audit committee. The finding indicates possibility of lack of capacity to carry out the functions of audit committees; weak internal control systems; chances of conflict of interest and complacency due to the lack of independence. There is avenue for further research as more ministries in Namibia are now establishing their audit committees, especially as the Namibian Code of Corporate Governance (the NamCode) gains more popularity among the public sector.

scholarly journals Examining Auditing as an Essential Element of Financial Management and Good Governance in Local Government

2014 ◽  
Vol 2 (2) ◽  
pp. 82
Author(s):  
Sindisile Maclean
Keyword(s):  
Local Government ◽  
Financial Management ◽  
Local Governments ◽  
Good Governance ◽  
Essential Element ◽  
External Factors ◽  
Financial Strategy ◽  
Internal Factors ◽  
Accounting Systems ◽  
Key Issues

The purpose of the article is to address issues of auditing in the context of financial management as a contribution to good governance. Generally, not all local governments have effective and operational audit units and committees. As a result, auditing is not used as an essential element of good governance and this leads to bad audit outcomes like disclaimers and adverse opinions. The bad audit outcomes in local government have motivated the researcher to conduct the study on auditing. There are internal factors within the municipalities as well as external factors that are of interest and directed the researcher to have desire and commitment to make a contribution in this particular field of research. The key issues, amongst others, are principles of financial management, financial strategy, auditing functions such as forensic auditing, fraud auditing, forensic accounting and detection of fraud, including accounting systems and auditor’s role. This article will also attempt to reinforce existing theories and add value to local government financial discourse and good governance.

scholarly journals The Relationship between Audit Committee Best Practice and Good Governance

2021 ◽  
Vol 7 (3) ◽  
pp. 158-183
Author(s):  
Lourens J. Erasmus ◽  
Philna Coetzee ◽  
Adéle du Preez ◽  
Clara D. Msiza
Keyword(s):  
Audit Committee ◽  
Best Practice ◽  
Good Governance ◽  
The Relationship

scholarly journals Motivasi, Kepuasan Kerja, Komitmen Pegawai Akuntansi dan Kualitas Laporan Keuangan Pemerintah Daerah pada Pemerintah Kota Depok

2014 ◽  
Vol 1 (02) ◽  
pp. 187-199
Author(s):  
Baja Lodhrakentjana ◽  
Elvira Luthan
Keyword(s):  
Job Satisfaction ◽  
Financial Management ◽  
Local Governments ◽  
Structural Equation ◽  
Central Government ◽  
Good Governance ◽  
Financial Statements ◽  
City Government ◽  
Equation Modeling

ABSTRACT Public demand for good governance is increasing. This encouraged the central government and local governments to implement the public accountability. One indicator of the performance of local governments in the field of financial management indicated on the output of the quality of the financial statements are realized by the opinion of local government financial statements based on the audit by the Supreme Audit Agency (BPK). This study aimed to examine the effect of motivation, job satisfaction and commitment to quality financial statements regional governments made by employees who handle accounting on regional work units and the Regional Finance Management Unit (SKPD and SKPKD) Depok city government. Data analysis was performed using Structural Equation Modeling (SEM) with aid Linear Structural Relations (Lisrel). The results show that the motivation, job satisfaction and commitment is positively related and significant effect on the quality of financial reporting. ABSTRAK Tuntutan masyarakat terhadap pengelolaan pemerintahan yang baik semakin meningkat. Hal ini mendorong pemerintah pusat dan pemerintah daerah untuk menerapkan akuntabilitas publik. Salah satu indikator kinerja pemerintah daerah di bidang pengelolaan keuangan ditunjukkan dari keluaran berupa kualitas laporan keuangan yang diwujudkan oleh opini laporan keuangan pemerintah daerah berdasarkan audit oleh Badan Pemeriksa Keuangan (BPK). Penelitian ini bertujuan untuk menguji pengaruh motivasi, kepuasan kerja dan komitmen terhadap kualitas laporan keuangan pemerintah derah yang dibuat oleh pegawai yang menangani akuntansi pada Satuan Kerja Perangkat Daerah dan Satuan Kerja Pengelola Keuangan Daerah (SKPD dan SKPKD) pemerintah kota Depok. Analisis data dilakukan dengan menggunakan Structural Equation Modelling (SEM) dengan bantuan Linear Structural Relation (Lisrel). Hasil pengujian menunjukkan bahwa motivasi, kepuasan kerja dan komitmen berhubungan positif dan berpengaruh signifikan terhadap kualitas laporan keuangan. JEL Classification: H53

scholarly journals FRAUD DIAMOND THEORY DAN KUALITAS PENGELOLAAN KEUANGAN DENGAN MODERASI SISTEM PENGENDALIAN INTERNAL

2019 ◽  
Vol 2 (2) ◽  
pp. 207-223
Author(s):  
Evi Yuli Susanti ◽  
Gideon Setyo Budiwitjaksono
Keyword(s):  
Control System ◽  
Internal Control ◽  
Financial Management ◽  
Local Governments ◽  
Quantitative Methods ◽  
Good Governance ◽  
Sampling Technique ◽  
Government Accounting ◽  
Internal Control System

Regional financial management is a key element in good governance. The preparation of financial statements based on government accounting standards is a form of quality financial statement management. It can shows the performance of government that always realizes transparency and accountability of local governments. This study aims to examine the effect of fraud diamond theory on the quality of financial management with an internal control system as a moderating variable. This study uses quantitative methods and data samples of 90 employees in the Regional Apparatus Organization (Organisasi Perangkat Daerah – OPD) Malang City, East Java, with a purposive sampling technique based on criteria. Data analysis using Path Analysis techniques. The results showed that pressure, opportunity, rationalization and ability affect the quality of financial management. While the internal control system is not able to strengthen or weaken the influence of pressure, opportunity, rationalization and ability to the quality of financial management.

Sign in / Sign up

Export Citation Format

Share Document