EFFORTS TO EDUCATE PUBLIC SERVANTS ON

IMPORTANCE OF AUDIT PROCEDURE AND BEST

ACCOUNTING PRACTICES

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Presented by:

Name: LOUIS MWANSA (MR)

Title: DIRECTOR – PLANNING AND INFORMATION

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Outline of the Presentation

1. Audit procedures and accounting practices

2. The Role of the Office of the Auditor General in the Public Service

3. Efforts made in educating the public servants on the importance of

audit procedure and best accounting practices

4. Conclusion

5. Acknowledgements

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Audit Procedures and Accounting Practices

• Every accounting system needs to be audited in order to

attain sound financial management in the use of public funds

and subsequently, to attain economic development.

• The importance of effective auditing and accounting

processes is illustrated in the diagram below:

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• Monies are spent by MPSAs

Sound financial management is promoted

Sustainable national economic development is achieved

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The country’s economic

development is dependent on

how well the public resources

are utilised.

However, good utilisation

of public funds calls for

best accounting practices

and effective audit

procedures.

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It also depends on how efficient and effective the

operational and financial systems in the public sector

are managed.

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• Public officers entrusted

with the management of

public funds need to

properly account for the

public resources.

• The role of the Office of the Auditor General (OAG) in the

civil service is to carry out various types of audits and

thereby enhance accountability and transparency in

the utilisation of public financial resources

The Role of the Office of the Auditor General in the Civil Service

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The Role of the Office of the Auditor General in the Civil Service

The OAG which is the Supreme Audit Institution (SAI) of Zambia

continuously makes efforts to ensure that effective audit procedures

are implemented in the audit of public funds by enhancing its

operations through:

i. Proper Planning, Execution and Reporting

ii. Capacity building;

iii. Affiliations with other international SAIs, audit organisations and;

iv.Cooperating partners.10

However, an audit cannot be fully effective if the

accounting records are not properly managed.

Therefore, it is important that responsible officers adhere

to the accounting procedures and Government financial

regulations in the preparation and management of

accounting information.

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An effective audit function is

therefore key to ensuring that:

i. The Government achieves its

objectives (good governance)

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i. The citizens’ socio-economic needs are met.

The public resources are meant to benefit the whole society which include the

most vulnerable.

Therefore, it is important that effective audit and accounting procedures are

implemented in the public sector in order to attain the socio-economic

needs of the citizens.

The OAG educates the public servants on the importance of audit and

accounting procedures through various ways and these include:

•The Audit Process

During audit, the auditors scrutinise the financial records for correctness and

other assertions such as compliance and highlight the weak internal controls

within the accounting system.

Recommendations are then made on how the controls can be strengthened.

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• In addition, auditors normally engage the clients to

discuss:

i. the objectives of the audit;

ii. the importance of preparing accounting records and;

iii.Good record keeping of accounting information.

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• Sensitisation programmes for Permanent Secretaries (Controlling Officers)

From time to time, the OAG conducts sensitisation workshops for Permanent Secretaries who are the controlling officers of financial resources on the following matters:

i. Importance of audit procedures

ii. The various types of audits carried out by the OAG

iii.Importance of implementing best accounting practices

iv.Any changes implemented by the OAG in its audit operations16

• The objective of the sensitisation programmes is to ensure that:

i. Clients understand the objectives of auditing

ii. Best accounting practices are consistently applied

iii.To promote sound financial management.

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• Government has in place financial regulations which apply

in the management of public funds in MPSAs.

• The financial regulations are one of the key tools the OAG

uses to base its audits to ensure that the utilisation of public

funds is in line with the regulations and whether the public

funds are being utilised in an efficient, effective and

economic manner.18

PUBLIC ACCOUNTS COMMITTEE

The Public Accounts Committee is a median through which

Government financial operations are controlled.

The audit queries indicated in the financial audit reports are

deliberated by the Public Accounts Committee and the

clients are sanctioned for failure to adhere to regulations.

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• It is through this process of deliberations that emphasis is

made to clients to effectively implement the laid down

procedures of managing public financial resources and

also on the importance of audit procedures.

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Conclusion

Having highlighted the importance of audit and accounting

procedures in achieving economic development, it is

important that as public servants:

• we put the socio-economic welfare of the country in

forefront.

•This calls for exhibiting accountability, transparency and

ethics in the use of public resources. 21

Conclusion (continued)

• In addition, public servants should view the audit

procedures as a tool to promote sound financial

management for the benefit of the citizenry.

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Acknowledgements

• As OAG, we would like to thank the Consortium for

International Management, Policy, Administration and

Development (CIMPAD) and the Zambian Society for

Public Administration (ZSPA) for organising this important

event.

• We implore you to continue this good work. 23

THANK YOU

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