Chapter IV. INSPECTION
| DOI | http://doi.org/10.1002/j.1099-162X.1956.tb01297.x |
| Date | 01 October 1956 |
| Published date | 01 October 1956 |
cu.
IV.
INSPECTION
23
instructions are being efficiently carried
out
and
that
the
arrangements provide
adequate safeguard.
Audit reports should be
submitted
to
the
treasurer
in cases where defalcations
occur, where
there
has been failure to
maintain
satisfactory records or where
it
ｾｰｰ･｡ｲｳ
that
improvements are necessary in
the
accounting arrangements.
he reports should also be
submitted
to
the
local
authority
concerned.
CHAPTER
IV
INSPECTION
I
PURPOSE
NTERNAL
audit
has been dealt
with
in
chapter
III
since
it
is an integral
part of
the
routine procedure of
the
orderly administration of
the
budget. In this
Chapter we are concerned
with
the
external
audit
which is an
act
of
the
central
government.
Its
purpose is
not
merely to ensure
that
central
grants
have
ｾ･･ｮ
spent
as authorised because this can generally be achieved in
other
ways,
ut
ratber
to secure asurvey of
the
year's
work when
the
authority
is called
to gIve an account of its stewardship. We
think
that
in African conditions
the
ful]
SCope
of
the
audit, as a general inspection of all
the
activities of an
author-
Ity, should be recognised.
.
ｾｲｯｭ
the
point
of view of encouraging an
authority
to assume full responsi-
bIlIty, a retrospective
audit
has
advantages
over
day
to
day
administrative
Control.
The
authority
must
make
its own decision
at
the
time
and
must
act
¥pon it. Only
later
will it be told
whether
its actions were right or wrong.
he most
important
conclusion which emerges is
that
the
auditor's
report
l1l.ust
be presented to
the
authority,
and
to
the
central
government, within a
Very
short
time
after
the
end of
the
year. A long delayed
report
is usually of
Very little value.
ApPOINTMENT
AND
DUTIES
OF
EXTERNAL
AUDITORS
In
England
the
auditor
is appointed by
the
Minister of Local Government,
but .having been appointed he is as independent as a judge. He glances
neither
ｾ
nght
nor
to left
but
does his work
strictly
according to
the
letter
of
the
law.
e is, moreover, solely concerned with finance. We
think
that
this
is too rigid
ｾ
Conception for Africa, first because established local authorities are likely to
teupset
by
such aformal
and
impersonal
procedure;
secondly,.
｢･ｾ｡ｵｳ･
t?e
rue worth of an
authority
may
not
be revealed
by
amere examination of.ltS
accounts,
and
thirdly
because
the
supply
of qualified auditors capable of
｢ｾ｡ｮｮｧ
ｾｵ｣ｨ
aresponsibility is likely to be short. These objections should be considered
Ogether:
the
first
and
second would
not
fall
away
if
it
happened
that
there
were enough qualified auditors to go
round
and
to produce
their
reports
ｱｵｩ｣ｾｬｹＮ
yYe
think
that
the
annual
audit
should be an administrative,
aswellasafinancml,
ｾｮｳｰ･｣ｴｩｯｮ
and
should be carried
out
for
the
department
or ministry responsible
.or local government
rather
than
for
the
Oversea
Audit
Department.
The
Inspecting
team
should consist of an administrative officer
and
an auditor,
with
ｾｵ｢ｯｲ､ｩｮ｡ｴ･
staff as required. Occasionally one officer will suffice, provided
hat
he combines in himself
both
administrative
and
financial skill.
It
is
important
to establish
the
idea
that
this inspection or
scrutiny
is an
･ＩＨ･ｲｾｩｳ･
carried
out
by
the
central
government in
the
general public interest,
and It follows
that
the
appointment
of
the
auditor
should
not
lie
with
the
local
authority itself.
The
officers of
the
team
will, then, normally be government
offi.cials;
officers of
the
Oversea
Audit
Department
or commercial auditors,
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