Compliance with Audit Procedures by Local Municipalities within Ngaka Modiri Molema District
Lesolang, Nkgatswe Josias
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The study was conducted in the Ngaka Modiri Molema District of the North West Province of South Africa. Its aim was to contribute solutions to the worsening unfavourable audit opinions within the local municipalities. The objectives were to identify the factors that led to unfavourable audit opinions and to recommend measures to improve the audit opinions. The study adopted an exploratory research design. A mixed-method approach was applied to collect data. Data-collection tools included a series of assessment matrices and semi-structured interviews. Findings of the study indicate that none of the local municipalities fully complied with best practice in any of the eleven competencies assessed. On the overall, the three local municipalities scored 62%, 46% and 22% respectively. It was also clear that the competencies evaluated fell within the micro-environment of the municipalities. The study concluded that the factors that led to unfavourable audit outcomes in the local municipalities were internal and could be mitigated through corrective action by top management. A number of recommendations were suggested for top management to adopt in this regard. The study also recommended that further studies should be undertaken to develop a framework that would streamline the flow of information in the municipal finance system with a view of obtaining credible financial statements.