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Public Audit Act, 2004 (Act No. 25 of 2004)

Notices

General Directive: 2011

Addendum A: Criteria used to evaluate the three fundamentals of internal control leadership

 

Leadership

 

• Provide effective leadership based on a culture of honesty, ethical business practices and good governance, protecting and enhancing the best interests of the entity.
• Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls.
• Implement effective HR management to ensure that adequate and sufficiently skilled resources are in place and that performance is monitored.
• Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities.
• Develop and monitor the implementation of action plans to address internal control deficiencies.
• Establish an IT governance framework that supports and enables the business, delivers value and improves performance.

 

Financial and Performance Management

 

• Implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting.
• Implement controls over daily and monthly processing and reconciling of transactions.
• Prepare regular, accurate and complete financial and performance reports that are supported and evidenced by reliable information.
• Review and monitor compliance with applicable laws and regulations.
• Design and implement formal controls over IT systems to ensure the reliability of the systems and the availability, accuracy and protection of information.

 

Governance

 

• Implement appropriate risk management activities to ensure that regular risk assessments, including consideration of IT risks and fraud prevention, are conducted and that a risk strategy to address the risks is developed and monitored.
• Ensure that there is an adequately resourced and functioning internal audit unit that identifies internal control deficiencies and recommends corrective action effectively.
• Ensure that the audit committee promotes accountability and service delivery through evaluating and monitoring responses to risks and providing oversight over the effectiveness of the internal control environment including financial and performance reporting and compliance with laws and regulations.