Please use this identifier to cite or link to this item:
https://www.um.edu.mt/library/oar/handle/123456789/9598
Title: | Weaknesses disclosed in the NAO audit report regarding local councils : a 2007-2011 analysis |
Authors: | Gauci, Vanessa |
Keywords: | National Audit Office (Malta) Finance, Public -- Malta -- Auditing Local government -- Malta -- Auditing |
Issue Date: | 2014 |
Abstract: | Purpose: Primarily, this study aims to identify the main recurring weaknesses within NAO Annual Audit reports regarding LCs, between 2007 and 2011. The dissertation aims to understand the causes leading to these weaknesses. Secondly, the study intends to assess the usefulness of performance auditing for LCs. Design: Objectives were achieved through a qualitative analysis the Audit Reports. The analysis complemented the insights gathered from fourteen semi-structured interviews held with executive secretaries from various LCs, DLG officials and NAO officials. Findings: Internal Control emerged as an alarming area of concern having nearly 70% of all weaknesses. Inadequate record-keeping and non-compliance weaknesses were the highest ranking weaknesses. The interviews shed light on the causes of the recurring weaknesses in LCs. The causes for Internal Control weaknesses included: the inexistence of a standardised Internal Control system and resistance to change. The reasons for non-compliance weaknesses included: the anomaly in tendering requirements and the difficulty of applying IFRSs within the LC scenario. Furthermore, although all interviewees recognised the benefits of performance auditing, the lack of financial resources and technical expertise seem to inhibit their use. Conclusion: The resistance to change attitude seems to be a comparable attitude when compared to the findings of Brincat (2007) and Pule (2013). Higher assistance and enforcement is required by the DLG. However, the DLG needs the financial and technical support from the Central Government. Furthermore, considering that LCs were established to meet social needs, performance auditing emerged as a valuable audit tool that could facilitate improved resource allocation. Value: This study seeks to shed light on this area of public sector and the difficulties encountered by LCs. It intends to improve the quality of Local Government financial reporting and emphasize the beneficial outcome of performance auditing for LCs. |
Description: | M.ACCTY. |
URI: | https://www.um.edu.mt/library/oar//handle/123456789/9598 |
Appears in Collections: | Dissertations - FacEma - 2014 Dissertations - FacEMAAcc - 2014 |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
14MACC054.pdf Restricted Access | 3.47 MB | Adobe PDF | View/Open Request a copy |
Items in OAR@UM are protected by copyright, with all rights reserved, unless otherwise indicated.