TrueValueMetrics ... Impact Accounting for the 21st Century


HOME	SN-BRIEFS	SYSTEM OVERVIEW	EFFECTIVE MANAGEMENT	PROGRESS PERFORMANCE	PROBLEMS POSSIBILITIES	STATE CAPITALS	FLOW ACTIVITIES	FLOW ACTORS	PETER BURGESS
SiteNav	SitNav (0)	SitNav (1)	SitNav (2)	SitNav (3)	SitNav (4)	SitNav (5)	SitNav (6)	SitNav (7)	SitNav (8)
Date: 2024-07-17 Page is: DBtxt001.php L0200-Audit

Audit

A listing of files associated with Audit

Issue
Audit

Basic observation
Audit is a process that confirms that an accounting system is working right and the reports are correct.

Prevailing response
Audit does little more than to provide a check on the accountants, the accounting system, and the financial reporting. It is a limited exercise, and totally unsuited to be used as a substitute for good accounting. Few of the senior people in the relief and development sector seem to understand an audit cannot substitute for good basic systems and analytical accounting. Audit merely confirms that leadership failed to take accounting seriously and did not do its job.

A better response
The effort being used on audit after the fact should be put into improving the underlying accounting and the routine reporting, both internal and external. Audit should simply ascertain and then certify that everything is OK. If the audit cannot do that, then all responsible leadership within the project, the implementing organizations and the disbursing institutions should be called to account.

How good is the audit function?
NYTimes.com Article from 2003: U.S. Charges Ernst & Young Ex-Partner in Audit Case

Open file 3109

3109

The text being discussed is available at

SITE COUNT<

Blog Counters Reset to zero January 20, 2015

TrueValueMetrics (TVM) is an Open Source / Open Knowledge initiative. It has been funded by family and friends. TVM is a 'big idea' that has the potential to be a game changer. The goal is for it to remain an open access initiative.

WE WANT TO MAINTAIN AN OPEN KNOWLEDGE MODEL		A MODEST DONATION WILL HELP MAKE THAT HAPPEN
The information on this website may only be used for socio-enviro-economic performance analysis, education and limited low profit purposes Copyright © 2005-2021 Peter Burgess. All rights reserved.