1.1. The West North Province provincial government was accused of financial mism
ID: 2815174 • Letter: 1
Question
1.1. The West North Province provincial government was accused of financial mismanagement in the affairs of the province. Lionel Molefe, the premier, decided that an investigation into the matter, should take place. After some debate with his provincial council members, it was decided that the investigation should be conducted by either the provincial government’s lawyers, the provincial internal auditors, who report directly to the provincial council, or KMGR & Co, a large international audit firm. You are required to indicate which of the three parties mentioned above, should be appointed to conduct the investigation, your answer should include the reasons for not choosing the other two. (8)
1.2. You applied for a job as an auditor and you got a phone call for the job interview. On getting to the interview panel, you were asked, what are the duties and responsibilities of an auditor? You are required to answer the above question asked by the interviewer. (12)
Explanation / Answer
1.1 ANS
It is advicable for West North Province provincial government to conduct the investigation through KMGR & CO.
KMRG & CO. being a large international audit firm has more knowledge about core principles and financial analysis and reporting awith a strong expertise in the field of auditing. So can conduct the investigation effectively and efficiently and can reach out to the major issues for financial mismanagement.
Reasons for not choosing the other too parties are :
Provincial Government Lawyers hold expertise in legal matters relating to law rather than the financial subject specifically. There services can better be utilised after a thorough investigation is conducted by the audit firm were the culprits for the mismanagement will be identified if any and can go through a proper legal action against them.
Provincial Internal Auditors being the auditors of the government itself can act in biased manner not disclosing the real culprit for the mismanagement. If they had done their job well the situation of financial mismanagement would not have actually arised at first place.
1.2 ANS
KEY DUTIES AND RESPONSIBILITIES OF AN AUDITOR
1. Primary responsibilities of an auditor once he joins the company is to understand the nature and working of business operations only then a proper audit report can be submitted.
2. Perform timely audits to report discrepencies if any.
3. Periodically examine and evalute the adequacy of companies internal control.
4. Make recommendations for improvement in any area posiible.
5. Improving risk management and corporate governance of the company.
6. Assist external auditors in completion of their financial statement audit.
7. Conducting special investigations in case of fraud or financial mismanagement.
8. Help company in compliance with the relating laws and regulations.
9. Provide value additions to the working of the company.
10. Provide investment banking and advisory services.
11. Compliance with audit standards.
12. Communicate and coordinate with company's employees and encourage their contributions towards the audit.
Hope this was helpful :)
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