BY: Joseph Akim Gordon
Auditing is an important tool to ensure transparency and accountability in financial management; auditing is an important term that describes the examination and verification in an institution setting for financial records. Auditing ensures the accuracy and integrating of financial information, also it enhances operational efficiency, promotes transparency. Auditing is a management tool aims to examine financial statements, accounting records and other relevant documents and information.
The objectives of an institutional audit are aimed at reviewing the institution financial statement include balance sheet, income statement and cash flow statement to ensure that they present a true and fair view of institutional financial position and performance.
The importance of auditing is to detect fraud and errors in the establishment and to report the audit report to the management authority, this includes examination of internal controls and to assess the risk of fraud and implementing procedures to detect fraudulent activities. The assessment of internal control, which are measures put in place to safe guard assets, ensure accuracy in financial reporting and promote operational efficiency
Institutional audits play crucial role in the financial ecosystem and are important for various reasons, audit helps to ensure the accuracy and reliability of financial statements, this is essential for maintaining the trust of investors, creditors and other stakeholders in the business.
Transparency and accountability of the audited financial statements provide transparency into the institution financial performance and position, the transparency is essential for building trust and confidence among stakeholder’s customers, suppliers and the public.
Companies are often required by law to undergo audits, especially if they are public operated, compliance with auditing requirements ensures that the institution follows applicable laws and regulations. The investors often rely on audited financial statements to make informed investment decisions; an independent audit opinion adds to credibility to the company’s financial information and contributes to investor confidence.
The developing country like South Sudan, is vital to have an audit body to over see the use and transaction of money to be used for the purpose of development, it helps to guarantee the proper use of our development budgets, in many cases some institutions in the country over and under use of their budget, this means that such institutions are not adhering to the proper use of the budget. There must be transparency in the use of fund, and whether the budget is over or under used so both cases are fraudulent, as there is no accountability, in a situation that audit reports proves misuse of funds and administrative measures are taken against those who misuse the resources, the audit reports are presented regularly, it is possible to identify any fraud in some of the Government institutions, why the audit institution is not able to present their audit report periodically? This is an admirative failure.
The financial mis management could have been detected and those responsible are held responsible this could have exposed cases of corruption misused of government resources would have exposed the wrong doers and face the rule of law, this could have send a warning signals that if you misuse Government resources you will be held responsible, in this way the potential wrong doers will get scared and gradually Government resources will be used properly