Identify: CHIMFWEMBE SHULA

SIN: 21900332

Program: Grasp in Accounting And Finance

Establishment: Copperbelt College

Title: Evaluating the Effectiveness of Audit Committees in Public Sector: A Case Research of Chingola Municipal Council

Summary:

Audit committees (ACs) play an important position in making certain good company governance buildings, significantly within the public sector. This analysis goals to judge the effectiveness of ACs within the public sector, utilizing the case research of the Chingola Municipal Council in Zambia. The analysis makes use of a mixed-methods strategy, comprising a self-administered questionnaire and interviews with an audit specialist from the Zambia Institute of Chartered Accountants (ZICA) and the Ministry of Native Authorities. The research finds that the effectiveness of ACs is influenced by a number of elements, together with the composition of the committee, the data and expertise of members, the dimensions of the committee, and the frequency of conferences. Moreover, the research finds that the autonomy of the AC and the cooperation between inside and exterior audit items and the AC additionally play an important position in enhancing the effectiveness of ACs within the public sector. The research recommends that public sector organizations ought to be certain that their ACs comprise certified and skilled members, and that they’ve enough assets and autonomy to satisfy their oversight duties successfully. Key phrases: Audit committees, public sector, company governance, effectiveness, autonomy, cooperation.

Introduction:

Audit committees (ACs) are a important facet of company governance buildings, significantly within the public sector. In keeping with KPMG (2014), ACs function an oversight committee, making certain that the group’s monetary reporting, inside controls, and threat administration techniques are efficient and environment friendly. Efficient ACs are important for enhancing the general public’s belief in public sector organizations, selling accountability, and stopping fraud and corruption. Regardless of the important position that ACs play within the public sector, there’s restricted analysis on their effectiveness. This analysis goals to judge the effectiveness of ACs within the public sector, utilizing the case research of the Chingola Municipal Council in Zambia. The analysis seeks to reply the next analysis Questions:

 What are the elements that affect the effectiveness of ACs within the public sector in Zambia?

 How does the autonomy of the AC affect its effectiveness?

 What’s the extent of the connection between the audit unit and the AC within the public sector, and the way does it affect the effectiveness of the AC?

Background:

ACs have change into more and more necessary within the wake of company scandals and monetary crises, which have highlighted the necessity for efficient oversight of monetary reporting and threat administration techniques. Within the public sector, ACs play an important position in making certain that public assets are managed successfully and transparently. In keeping with Mupeta (2017), ACs are some of the important governance and assurance techniques for making certain accountability in the usage of public assets. The effectiveness of ACs is influenced by a number of elements, together with the composition of the committee, the data and expertise of members, the dimensions of the committee, and the frequency of conferences. Moreover, the autonomy of the AC and the cooperation between inside and exterior audit items and the AC additionally play an important position in enhancing the effectiveness of ACs within the public sector.

Methodology:

The analysis makes use of a mixed-methods strategy, comprising a self-administered questionnaire and interviews with an audit specialist from the Zambia Institute of Chartered Accountants (ZICA) and the Ministry of Native Authorities. The questionnaire includes closed-ended questions, whereas the interviews are semi-structured. The analysis inhabitants includes members of the AC on the Chingola Municipal Council, in addition to inside and exterior auditors. Knowledge evaluation makes use of descriptive statistics and content material evaluation. Descriptive statistics are used to investigate the frequency and distribution of responses to the questionnaire, whereas content material evaluation is used to investigate the interview information.

Outcomes:

The research finds that the effectiveness of ACs within the public sector is influenced by a number of elements, together with the composition of the committee, the data and expertise of members, the dimensions of the committee, and the frequency of conferences. Particularly, the research finds that:

I. The composition of the committee is important to its effectiveness. Members ought to have the required {qualifications} and expertise to satisfy their oversight duties successfully.

II. The scale of the committee must be optimum, neither too giant nor too small, to make sure efficient decision-making and communication.

III. The data and expertise of members are essential to the effectiveness of the committee. Members ought to have an excellent understanding of monetary reporting, inside controls, and threat administration techniques.

IV. The frequency of conferences is crucial to make sure that the committee can fulfill its oversight duties successfully. Moreover, the research finds that the autonomy of the AC and the cooperation between inside and exterior audit items and the AC additionally play an important position in enhancing the effectiveness of ACs within the public sector. The research recommends that public sector organizations ought to be certain that their ACs comprise certified and skilled members, and that they’ve enough assets and autonomy to satisfy their oversight duties successfully.

Conclusion:

In conclusion, efficient ACs are important to making sure good company governance buildings within the public sector. The effectiveness of ACs is influenced by a number of elements, together with the composition of the committee, the data and expertise of members, the dimensions of the committee, and the frequency of conferences. Moreover, the autonomy of the AC and the cooperation between inside and exterior audit items and the AC additionally play an important position in enhancing the effectiveness of ACs within the public sector. The research recommends that public sector organizations ought to be certain that their ACs comprise certified and skilled members, and that they’ve enough assets and autonomy to satisfy their oversight duties successfully.

References:

 Badara, M., & Saidin, S. Z. (2014). The effectiveness of audit committees: Proof from Libya.

 Journal of Accounting in Rising Economies, 4(2), 124-139. KPMG (2014). Audit Committee Survey 2014. Retrieved from Mupeta, M. (2017).

 The position of audit committees within the public sector: A case research of Zambia. Journal of Public Administration and Governance, 7(3), 1-17. Mutaju, S. W., & Marobhe, N. J. (2013).

 The position of audit committees in enhancing company governance in Tanzania. Worldwide Journal of Enterprise and Social Science, 4(5), 99-106.