AUDIT : Public Sector Performance

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AUDIT : Public Sector Performance

During this time, the public sector often receives accusation as a hotbed of corruption, collusion, nepotism, inefficiency and waste of state the source of. Complaints of "bureaucrats can not afford to do business" is intended to criticize the poor performance of public sector companies. Government as a public-sector organizations were not immune from these accusation. Organizations sector public are the institutions that run the government with a source of legitimacy that comes from the public. Therefore, the public trust given to the government must be balanced with a clean government.

Good governance is characterized by three main pillars that the basic elements that are interrelated (Prajogo, 2001). The three basic elements are participation, transparency and accountability. A good government should open the door as wide as possible so that all parties involved in government and to participate actively to oversee the running of the government that must be held in a transparent and its implementation should be accountable. In the language of accounting, accountability (ability to give responsibility) is the basis of financial reporting (Wilopo, 2001). Financial reporting by government is important role in order to fulfill the task of government that accountability to the public in a democratic society.

In a democracy, "the transparency of financial reporting" is something that is demanded by the public to the government. Conversely, in a democracy, the government is obliged to provide transparent financial statements to the public. A democratic government should be responsible for the integrity, performance and management, so the the government should provide useful information to assess accountability and assist in decision making on economic, social and political. Government is the reporting entity that must be make a financial report with the following considerations (Faiz, 2000):

- The government owns and controls the significant resources.

- The government that use of these resources should be far-reaching impact on the economic welfare of the people.

- There is a separation between management and ownership of of these resources.

Accountability refers to responsibilities individuals, groups or organizations that should implement a compliance authority and responsibility. The mandatory are included:

- Answering, attempt to provide an explanation or justification for the implementation and fulfillment of responsibilities.

- Reporting, reporting the results of the implementation and fulfillment of responsibilities.

- Producing, assumptions on the results achieved.  

Organizations sector public have to maintain the quality, professionalism, accountability and value for money in carrying out its activities. Audit of public sector organizations are required to ensure that accountability has been done by public sector organizations. Implementation of audit is not only limited to financial and compliance audit, but should be expanded with conduct audits of the performance of public sector organizations. [Bajuri & Trihapsari]

Healthy | Smart | Rich, at: 5/21/2012

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