Post Audit Practices and Internal Control Implementation in Local Government in Uganda: A Case of Wakiso District

Abstract

The original objective of auditing was to detect and mitigate errors and fraud. Auditing evolved and grew rapidly after the industrial revolution in the 18th century with the growth of the joint stock companies, the ownership and management became separate. The shareholders who were the owners needed a report from an independent expert on the accounts of the company managed by the owners needed a report from an independent expert on the accounts of the company managed by the board of directors who were the employees. The objective of auditing shifted and auditing was expected to ascertain whether the accounts were true and fair rather than detection of errors and frauds (Gupta &Pagare, 2005) Internal control served as a simple administrative procedure comprised mainly of checking accuracy of transactions, pre-payment verification and control, counting assets and reporting on past events to various types of management. But in recent times, a combination of forces has led to a quiet revolution in the profession (Barra, 2010). Governments are now moving toward higher levels of transparency and hence local governments must demonstrate accountability in the use of public money and efficiency in the delivery of services (Lacotelli, 2003). Internal control provides a number of important interventions which include detecting and mitigating fraud and monitoring compliance with company policy and government regulation (Aikins, 2011).