Apex Water Services Corporation is a county-owned entity responsible for supplying water to urban and rural households. The corporation is implementing a meter replacement project funded through the county budget. Internal audit reports indicate delayed follow-up of recommendations, weak monitoring of contractors and possible overpayments for meters that were never installed. The county executive committee has requested guidance on public sector roles, internal audit monitoring and possible recovery of public funds if irregularities are confirmed.
Required:
(a) (i) Explain THREE responsibilities of a public sector auditor when auditing the meter replacement project.
(ii) Describe THREE audit procedures that should be performed to verify whether meters paid for under the project were actually installed.
(b) (i) Recommend THREE matters that should be included in a risk-based internal audit plan for the meter replacement project.
(ii) Explain THREE internal audit key performance indicators that the audit committee could use to monitor whether audit recommendations on contractor supervision and meter installation are being followed up.
(c) (i) Discuss TWO asset recovery actions that the county government should consider if the suspected overpayments are confirmed.
(ii) Analyse TWO financial reporting actions that management should take where the confirmed irregularities materially affect the financial statements.
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