Audit Scope
The audit of the accounts and records of Milne Bay Provincial Health Authority was directed primarily at the evaluation of internal controls, together with such other examinations considered necessary. The audit procedures applied were intended to reveal system weaknesses, which would result in losses or errors, fraud and mismanagement of public funds.
Moreover, the audit was directed to examine the reliability and integrity of the Financial Statement presented and other information produced and determining the extent of compliance with applicable laws, regulations and directives. In addition, internal controls pertaining to receipts and receivables, payments, purchases and payables, stores and supplies, cash and banking, budget, payroll, advances and assets owned and in the custody of the MBPHA were appraised accordingly.
Nature of Audit
The nature of audit is influenced by factors such as the use of professional judgement including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. The audit is not required to search specifically for fraud and therefore the audit cannot be relied upon to disclose all such matters. However, all audits are planned and executed so that I can have a reasonable expectation of detecting material misstatements resulting from irregularities including fraud.
Compliance with relevant legislation is of paramount importance in safeguarding the State’s assets. My audits included reviews and tests to ascertain whether key provisions of the Public Finances Management Act, 1995 (as amended 2016) and various Finance Instructions have been adhered to.