The causes of qualified audit opinion at the Department of Public Works and Roads, Mmabatho, North-West

Abstract

Government Departments in South Africa are obliged to get their finances and operations audited by the Auditor General every year. The Auditor General is required by law to provide an audit opinion as part of the process. The Department of Public Works and Roads (DWPR) in the North West Province of South Africa has received qualified audit opinion reports in the past three years. This study sought to understand the causes of why the DWPR has received these qualified audit opinion reports in the recent past. Using a quantitative approach, the study was conducted at the DWPR in the North West Province at the Mafikeng Head Office. Questionnaires were distributed to respondents involved in the audit function in the department. The findings revealed that though the Accounting Officer has established policies and procedures and complies with the Public Finance Management Act, challenges existed in that employees reported that their roles and responsibilities were not clearly defined. Also, recommendations from previous Auditor General Reports were not effectively implemented at the time of this study. Existing legislation needs to be reviewed to ensure that recommendations are adopted and a plan of action is drawn up for immediate implementation.