CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The purpose of the
public sector can be viewed from two distinct and opposing perspectives: i)
public sector exists to ensure equitable management and distribution of
economic resources, and ii) public sector exists to provide limited range of
goods and services to the populace (Guthrine, 1998; Minogrue, 2000).
The former (referred to
as the traditional model of public sector management) placed emphasis on
compliance with laid down rules, thus accountability (Guthrine, 1998; Owolabi,
Ocansey, & Dada, 2013). This view is a contestable ideology as public
sector practitioners (Morsen, 2008) and academics (Anessi-Pessina and
Steccolimi, 2007) have argued that citizens’ expectations from the public
sector is drifting from mere provision of services to good governance and
efficiency in the provision of services (value for money). The desire to hold
government accountable for results is becoming more prominent, thus, making the
demand for quantitative and qualitative financial reports imperative for
accountability.
In the same vein,
accounting is viewed as the most critical system for maximising efficiency and
minimising costs of public services (Andrews, 2002; Bruno, 2014; Jones &
Browrey, 2013: Owolabi et al., 2013). Consequently, the existence and use of a
good financial reporting system was regarded as key to achieving the objective
of maximising efficiency in the public sector.
The imperatives of good
governance demands timely reporting of the activities of government for the
attainment of accountability and transparency. Audit reports keep the citizenry
informed of the financial activities of the government. The auditor assesses
the financial activities of the Government. The role of auditor in an economy
is assurance of transparency and accountability (Adegoroye, 2008).
An audit ensures proper
and effective use of public funds and the development of sound financial
management. Effective operations of the functions of the Auditor –General
provide the proper execution of administrative activities. Moreover, the it is in promoting accountability, sound financial
management and the encouragement of sound internal control mechanism (Akenbor,
C. & Oghoghomeh, 2011)..