Advancing or retreating in the quest to improve public accountability and government auditing? The South African Draft Public Audit Bill

Abstract

The Draft Public Audit Bill was developed to reform the public sector audit function and to repeal and amendment existing legislation in this regard. This article examines the effect the proposed legislation has on the public accountability framework and the quest to improve and strengthen the public sector audit function. The examination focuses on the independence of the Auditor-General as required by the South African Constitution. Major areas of concern are identified, relating to the Auditor-General's provision of other services to institutions where audit work is also performed, involvement of private sector auditors in audits of the Auditor-General, the marginalisation of the Registered Government Auditors profession, and other shortcomings. The article cautions that the powers that necessarily have to be assigned to the Auditor-General in order to achieve the desired independence status need to be carefully controlled by a tight accountability framework, within which the supreme audit institution (Office of the Auditor-General) needs to operate. It shows that the Draft Public Audit Bill does not provide an adequate accountability framework for the Auditor-General and the functions this supreme audit institution performs. The article finally concludes that the Bill contains numerous provisions that will ultimately erode the audit independence concept.