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Compliance with authorities is an essential element of public sector governance. Auditor reporting on compliance helps make public sector organisations accountable to government, taxpayers and the public at large; it may also provide accountability for funds granted to entities which are outside of, or which operate in partnership with the public sector.
The project is part of FEE’s ongoing contributions to improving public sector financial management. This has become especially relevant since the financial and fiscal crisis have decreased the trust of citizens who push public sector organisations to deliver value for money. With this pressure the demand grows for assurance services that enhance the information on which government or public management base their decisions. The European accountancy profession can play a role in making this information more transparent and reliable. With “Getting involved in public sector assurance” FEE starts exchanging best practices to this end.
Compliance audit covers compliance of the public entity with relevant laws and regulations, but can also cover specific instances of non-compliance in areas related to:
• The operating effectiveness of controls over compliance with laws and regulations;
• The investigation of suspected misconduct, illegal acts, fraud or corruption; or
• The assessment of the truth and completeness of information submitted to supervisory bodies.