Abstract:
It is argued in this article that audit committees are key contributors to improved
corporate governance in the public sector. Management in the public sector is
increasingly required to ensure that an effective system of internal control and
sound governance is applied in their responsibility areas. Increased accountability
is a requisite for a good democracy and for improved service delivery. The audit
committee is a legislated accountability instrument in the public sector and it
is argued that if these committees function effectively they will contribute to
improved corporate governance. When measuring the perceived effectiveness
of audit committees in national government departments from an external audit
perspective, areas for improvement of these committees are identified. This provides
an indication of how successful the public sector has been in implementing this
Public Finance Management Act, 1999 (Act 1 of 1999) requirement.
