Audit Objective
The audit of EHPHA’s financial statements for the years ended 31 December, 2014 and 2015 were planned and performed in accordance with the International Standards on Auditing (ISA) as promulgated by the International Federation of Accountants (IFA) with the objectives:
i. obtaining reasonable assurance on the integrity and reliability of its financial statements and other information contained therein, to determine compliance with disclosure requirements issued under Finance Instructions; the effectiveness of the internal controls system in place; and determining the extent of compliance with applicable laws, regulations and directives. The audit procedures applied were intended to reveal system weaknesses, which could result in losses or errors, fraud and mismanagement of public funds; and
ii. informing stake-holders on the performance of the PHA during the years under review; evaluating the reliability and effectiveness of its corporate governance; status of its current and future development programs, if any; and ascertaining significant control weaknesses as well as the remedial actions taken to improve its performance for better service delivery.
Audit Scope
The 2014 and 2015 audits of accounts and records of EHPHA were directed primarily at the evaluation of internal control systems together with such other examinations as were considered necessary. The audit involved performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements and included compliance with provisions of Section 62 of the Public Finances (Management) Act, 1995 with other relevant financial instructions issued from time to time.
The audit included reviews of the financial statements, budgetary controls, verification of cash and bank balances; examination on a sample basis, of the revenue, paid accounts and procurement management; capital works and maintenance, assets management, cash advances, personnel emoluments, and review of corporate governance in terms of effectiveness of the PHA Board and internal audit, and other operational matters.
Nature of Audit
The engagement is an assurance audit. Compliance with relevant legislation is of paramount importance in safeguarding the public resources. As such, the audit of the EHPHA for the years ended 31 December, 2014 and 2015 included reviews and tests to ascertain whether key provisions of the Public Finances (Management) Act, 1995, and Audit Act, 1989 (as amended) had been adhered to.
The nature of an audit is influenced by factors such as the use of professional judgement and the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. The audits of the EHPHA for the years ended 31 December, 2014 and 2015, however, were not required to search specifically for fraud and therefore the audits cannot be relied upon to disclose all such matters. Nevertheless, the audits of PHA were planned and executed so that I can have a reasonable expectation of detecting material misstatements resulting from irregularities, including fraud.