Audit committees and accountability in the South African public sector

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.