Question

Explain the importance of a follow up audit in public sector audits

Answer 1

The main objective of conducting a followup audit is to assess the progress the audited public sector entity has made towards implementing recommendations of a previous audit.The auditor shall examine the corrective actions taken by the audited entity or any other responsible party on the basis of results of previous audits. The auditor shall adopt an unbiased and independent approach.
Follow up audit will help to improve future audit work. It encourages the users of the reports and audited entity to take the audit reports seriously. A well structured questionaire should be presented to the entity to elicit an upadate on the status of action taken to implement the recommendations from earlier audits. All such audit findings and recommendations in the public sector should be followed up within 2 years time for proper functioning of the audited entity. Follow up audit is important to complete the actions promised by management or those charged with goveranance after previous audits.It will help thr government and the enterprise management to improve the efficiency and effectiveness of public sector underatakings. Follow up shall be reported appropriately in order to provide feedback to the legislature with the conclusions and impacts of all relevant corrective action.