Accountability &

Auditing
in the Public Sector
Presenter
Nurrin Sakinah Abdul Baki I18203150
FAIZATUL MUNIRAH BINTI MOHD. I17302527
Table of Introduction

Content
Public Sector Accountability

Public Sector Auditing

References
Public sector financial management
Introduction
(mechanism) P u b l i c S e c t o r A c c o u n t a b i l i t y

Public Money Public Property

 Ensuring the proper use of
public money in accordance with prevailing rules

procedures

Aims
effective and efficient delivery of public needs
programmes and activities to fulfil
demands
 ACCOUNTABILITY
CRUCIAL
CREATES Accountability is crucial to a country

It creates an effective control

Ensure management of public moneys is in

accordance with applicable laws and
regulations.
ENSURE
In the governance prospective, accountability
DEFINED is more often defined as an account giving
relationship between individuals
accept responsibility obligation of an individual or
for them organization to account
for its activities

ACCOUNTABILITY
terms

to disclose the results the same meaning to

in a transparent public sector
manner accountability
‘who is accountable to whom for what’
 Concept
The Malaysian government has undertaken several
& significant measures in promoting good governance,
accountability and transparency.

Principles
 CONCEPT OF ACCOUNTABILITY

Discusses specific answering standards

for different types of responsibilities
COMMON concerning different groups of people.

Discloses whatever the

government has done
by publishing its financial CONCEPT GENERAL
reports to the public
Provides adequate public
accountability to ensure fairness in
government pertormance
 Example of
International
Public Sector
Accountability
Practices
Romania
Focus on the performance of the financial
management.

Act as method to uphold the concept of

accounbility through integrated ‘commitment cash
accounting system’

Aims : To help citizens to decide whether the

governmen’s answering obligation is well addresse.
 Australia
Concept of accountability is persuasive in that it impacts on major
Barton (2009) aspects of government services

Uses accountability as tool to show the government’s operations

political

public

Five forms of accountability managerial

professional
personal

Reporting
Principal Concept of explaining & justifying activities
Accountability
accepting responsibility for outcomes
Chain of
Accounbility
Historically
The concept of accountability is closely related
to accounting ( bookkeeping)

Nowadays
It has moved beyond its bookkeeping origins and
has become a symbol for good governance in the
public sector.
The practice of accountability in Malaysia is the responsibility
of the following bodies:

Parliament Various Public Accounts

agencies Committee

National Audit
Treasury
Department
Accountability Model in Malaysia
 Parliament

an institution that maintains control towards the ruler

a supervisor, a controller and a critic against

the governmental governance and structure

Acts as

it can influence the policies of the

government.
As part of the Parliament

The Public Accounts Committee (PAC)

responsible for examining the reports given by

1. The National Audit Department (NAD)

2. The Accountant General’s Department (AGD)

which have been tabled in Parliament.

 As part of the Parliament
preparing the accounts
The AGD - responsible for for federal and state governments.
recording financial transactions

The accounts, which are prepared by

Submitted

The AGD
Submitted
NAD The PAC

The auditors perform audits on the submitted accounts to ensure that all information is credible and
trustworthy for reporting purposes
 As part of the Parliament

The Treasury -

responsible for preparing policies, as well as designing process and procedures

to ensure effective and efficient management of public sector funds

e.g. prepare annual budgets in an attempt to ensure that the country is not in deficit.
Chain of Accountability in Malaysia
Flow of responsibility Minitries/department prepare a draft of annual budgetary estimates.

& accountability 1
The draft is then sent to Treasury for approval
in the public sector

The Minister of finance presents the annual budgetary estimates

2
for parliament approval

3 Annual budget estimates are approved by the Parliament

Minister of finance issues General Warrant for approved payment

4
from the Consolidation Fund
Flow of responsibility Minitries/department implement the programmes, activities &
& accountsbility 5 projects & send monthly/quarterly expenditure reports to the
Treasury
in the public sector

Accountant General prepares the annual financial statement at

6 the end of the year and submits the report to Auditor General for
auditing

National Audit Department conducts audit works for the annual

7 financial statements for the ministries/departments. In addition, the
National Audit Department carries out performance audit for certain
projects, activities and programmes.

Auditor General submits the audit reports to Yang di-Pertuan

8 Agong for presentation at Parliament.
Flow of responsibility Auditor General returns the audited annual financial statements
& accountability 9 and Audit Certificate to the Accountant General for presentation
at Parliament.
in the public sector

Printed financial statements are presented at Parliament.

10

Yang di-Pertuan Agong tables the presentation of audit reports at

11 Parliament.

The Public Accounts Committee is responsible for examining the

reports of the Auditor General. During its meetings, the PAC may
12 call heads of ministries, departments and agencies to explain the
issues and matters raised by the Auditor General in his reports.