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Unit 10: Government and Independent Financial Audit: Comparison

Notes
Future Landscape
The goals set for implementing the best practices suggested in COBIT within the
Government of Dubai:
1. Establish COBIT as the preferred framework of leading practices for the IT
professionals within the Government Departments/Establishments.
2. Develop CGEIT as the most preferred certification for eligible IT professionals within
the Government Departments/Establishments.
3. Further propagate the benefits of CISA certification within the Government Audit
Community.
The adoption of COBIT by the Financial Audit Department, the Government Audit
Department of Dubai, has driven the need by the auditee management for knowing,
understanding and using COBIT resources within the IT and business community. In turn,
this has led to the wide acceptance and practical adoption of best practices of COBIT
among auditee entities within the Government of Dubai. Many of these organizations
have adopted the COBIT framework, in principle, as a de facto standard.
Question:

Analyze the case and write down the case fact in your own words necessitating the need of
auditing?

Source: http://www.isaca.org/Knowledge-Center/cobit/Pages/Government-of-Dubai.aspx

10.6 Summary

 The Indian Audit and Accounts Department, functioning under the Comptroller and
Auditor General, derives its authority and the powers for performance of its duties on his
or her behalf under the provisions of Section of 21 of the CAG’s DPC Act, 1971.

 Audit forms an indispensable part of the financial administration and is one of the
important organs necessary to ensure the sound functioning of a Parliamentary Democracy.
 The primary function of audit is to verify the accuracy and completeness of accounts.

 It is the function of audit to verify that financial rules and orders satisfy the provisions of
Law and or otherwise free audit objections and the rules and orders are properly applied.
 Government audit aims to ensure accountability of the executive in respect of public
revenue and expenditure.
 According to section 617 of the Companies Act, a government company is one in which
not less than fifty-one per cent of the paid up share capital is held by the Government.
 Integrity and objectivity are maintained when auditors perform their work and make
decisions that are consistent with the broader interest of those relying on the auditors’
report, including the public.
 A Government Financial Audit or an audit of financial statements is the verification of the
financial statements of a legal entity, with a view to express an audit opinion.

 While performing independent financial audit the statutory auditors observe the Code of
Ethics for Professional Accountants, adopted by the International Federation of Accountants.

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