Our primary role is to audit the accounts of public sector agencies and to report our opinion on the spending of public sector finances to the Legislative Assembly, Accounting Officers and taxpayers. A secondary role is to provide funding agents with information that would assure them that their monies were spent wisely and as intended. Our Audit Services include the following:
We conduct financial audits of the Public Accounts. This includes auditing the revenues and expenditures of central government ministries and departments. We also undertake examinations of several stand-alone ‘statements’ such as the Statement of Public Debt and Statement of Contingent Liabilities. We conduct financial audits of several quasi-government agencies and not-for-profit private sector organizations.
The Auditor General is mandated to form an opinion as to whether the accounts are free from material misstatement. The Auditor-General is required to state whether the transactions conform to appropriate legislative authority. With respect to quasi-government agency accounts, the Auditor General must state whether the accounts conform to international accounting standards.
Our audit of financial statements is carried out in accordance with the International Standards on Supreme Audit Institutions (ISSAIs). The ISSAIs are the authoritative international standards on public sector auditing. The purpose of the ISSAIs is to:
- ensure the quality of the audits conducted
- strengthen the credibility of the audit reports for users
- enhance transparency of the audit process
- specify the auditor’s responsibility in relation to the other parties involved
- define the different types of audit engagements and the related set of concepts that provides a common language for public sector auditing.
The full set of ISSAIs is based on a basic set of concepts and principles that defines public sector auditing and the different types of engagements supported by the ISSAIs.
Performance Audits (or Value-for-Money Audits)
Performance audits focus on how specific public sector projects, programmes and activities were implemented and are based on a planned and shared audit programme which may be adjusted due to unforeseen circumstances. This audit review the way the policies were effected and assess whether value-for-money was obtained. Note it is not the role of the MNAO to examine the merits of the policies and due to circumstances the planned audits.
A performance audit review involves assessing performance, identifying good practice and recommending improvements to minimize costs (economy); maximize the ratio of output to input (efficiency); and determine the extent to which objectives were achieved (effectiveness). These audits also cover governance and sustainability and are conducted following International Standards on Supreme Audit Institutions.
The MNAO is always happy to hear about any areas or issues that we should consider in our performance audit work programme. Therefore, if there are issues or areas that you think we should look into, please Contact Us.
Compliance audits are conducted in accordance with accordance with the International Standards on Supreme Audit Institutions (ISSAIs) to enable the Auditor General to arrive at a conclusion as to whether the activities of public sector entities are in accordance with the relevant laws, regulations and authorities that govern such entities. Such audits involve an assessment of the degree to which the audited entity is accountable for its actions and exercises good public governance. Specifically, this may involve auditing the extent to which the audited entity follows rules, laws and regulation, budgetary resolutions, policy, established codes, or agreed terms, such as the terms of contract or the terms of a funding agreement.
Information Technology Audits
We conduct information technology (IT) audits to ensure that the Government of Montserrat’s IT systems, operations and related control processes are effective and efficient to achieve their objectives. The objectives of an IT audit include:
- Evaluate the reliability of data from IT systems that have an impact on the financial statements.
- Evaluate the effectiveness of IT controls to ensure systems are functioning as intended.
- Ascertain compliance with applicable laws, policies, and standards.
- Assess whether the IT systems are aligned with the entity’s business objectives.
An environmental audit is an assessment of the condition of the environment, or the nature and extent of harm (or risk of harm) posed by an industrial process or activity, waste, substance or noise. These audits are conducted in accordance with International Standards for Supreme Audit Institutions (ISSAIs) and with relevant environmental laws, standards and policies at a national level. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives.
Special Audits are focused on important issues or information received from our stakeholders or concerned citizens that we feel should be reviewed and reported to the Legislative Assembly.