- 10 Marks
AAA – May 2019 – L3 – Q4a – Internal audit and outsourcing, Public sector audi
Discuss the effects of outsourcing government payroll and analyze the auditor's duties when such outsourcing is implemented.
Question
The Minister of Finance in his mid-year review of the national budget hinted that government payroll may be outsourced. The main reason being the guarantee of cost. In April 2017, a bio-metric exercise conducted by SSNIT ensured that 27,000 ghost names were identified and removed from government payroll. In the same year, 23,000 ghost names were removed as a result of a headcount of government employees. Resulting from these exercises, GH¢250 million was saved in 2017.
Required:
i) Discuss the effects of payroll outsourcing in this stance. (5 marks)
ii) Analyze what the service user auditor must do in the course of his duties when the outsourcing programme is implemented. (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Cost reduction, Internal Audit, Payroll outsourcing, Public Sector Audit
- Level: Level 3
- Topic: Internal audit and outsourcing, Public sector audit
- Series: MAY 2019
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