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(a) As per the Public Financial Management Act, 2016 (Act 921),
every covered entity is required to have an Internal Audit Unit,
and its head shall report to the Principal Spending officer (PSO)
of the entity administratively and the Audit Committee
functionally
An Internal Auditor shall have various functions namely:
- Reporting on soundness and application of controls in the
entity
- Effectiveness of risk management and governance process
- Compliances with enactments, policies, procedures, etc.
The Internal Auditor shall prepare an annual audit work plan as
per guidelines of Internal Audit Agency, which is to be submitted
to the Agency and above authorities, and shall report on budgets,
development initiatives, follow up on agreed audit recommendations
and corrective actions, propriety of public expenditure, etc.
Internal Auditor shall have access to all information and
explanations required, and submit quarterly reports to PSO, Audit
Committee, Auditor-General and Director-General of Internal Audit
Agency. He shall report suspected fraud to Principal Spending
officer or Director-General, as the case may be, depending on who
is involved in such frauds.
(b) Under this Act, an Audit Committee is required to be
established for a particular covered entity or other covered
entities in a sector, and the Minister shall specify details like
number of Audit Committees to be established in each sector;
qualification for appointment to, funding of and procedures for
meetings of such Committee.
Audit Committee to consist of 5 members, with majority being
independent, and nominated by Internal Audit Agency and Institute
of Chartered Accountants, Ghana, not working in covered entity,
rest 2 nominated by Principal Account Holder, who shall also elect
a Chairperson from among independent members.
The Audit Committee shall ensure that the head of a covered
entity
- Implements recommendations in internal audit report, Auditor
General’s report and Management Letter, and internal reports
- Prepares an annual statement of status of implementation of
above recommendations
- Such statement shall indicate remedial action proposed or
taken, period of its completion, and forwarded to Minister,
Parliament and President’s Office.
The Audit report issued by Auditor-General on statutory
corporations shall broadly contain an Executive Summary, a
statement of Audit Objectives and Audit approach, expected benefits
/ outcomes, a summary of irregularities and findings and
recommendations, and lastly a statement of sector-wise (for each
Ministry) findings.
Some of the issues an Audit report issued by Auditor-General
shall draw attention to include tax and cash irregularities,
outstanding debts/loans, Payroll and Contract Irregularities, Rent
payment Irregularities and Stores/Procurement Irregularities, with
a detailed description of the nature of irregularities and amounts
involved, followed by a Ministry or Department wise list of
observations.
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