organizationa;l

814 Words4 Pages
A public organizational setting refers to the public entity profile, internal organization and budgetary status of the internal audit office as well as the public organizational policies and procedures that guide the operation of the public entity which is audited. As a public organizational setting provides the context in which internal audit operates, it could exert influence on the level of effectiveness that internal audit in public sector could achieve. As an effective public sector audit is able to enhance the governance of public entity by materially increasing the citizens’ ability to hold the public sector entity accountable, hence it is crucial that the public sector organization has a setting which promotes credibility, equity and appropriate behavior of public sector officials so that the risk of public corruption could be reduced. Adopting an organizational setting which is configured appropriately will enhance the audit activities to be acted with integrity and reliability in order to achieve the public sector internal audit’s objectives. Organizational independence has to be adopted to ensure that the audit activity may conduct its work without any interference by the entity audited. Hence it is crucial that the audit activity in a public sector entity to have sufficient independence from the entity required to be audited so that the accuracy and reliability of the auditors’ work can be coupled with objectivity due to organizational independence. Regardless of the public sector organization’s structure, the organizational placement of the internal audit activity should provide sufficient safeguards to prevent the audited public sector entity from interfering the internal auditors’ ability to perform their duties and... ... middle of paper ... ... be conducted with complete and unrestricted access to records, property and employees to conduct appropriate performance for the audit activities. Besides, a public sector entity should have some basic governance principles such as setting a clear direction to guide the public organization’s actions. The public sector policy may be directed through broad national goals, strategic plans, performance goals, legislative guidance, designated oversight organizations and legislative oversight committees. A public sector organization setting with good governance would include clearly articulated ethical values, appropriate tone at the top, objectives, strategies and internal control which is aligned with policies and procedures to encourage the public sector internal auditors’ behaviors to be consistent with good ethics and hold them responsible for doing the right thing.

    More about organizationa;l

      Open Document