We recommended improved corporate accountability and governance
KTS Forensic were instructed to audit a public body’s financial statements going back over a number of years. The public body had grown significantly in recent years and was now receiving material amounts of public funds. It had not historically been subject to audit, and the various stakeholders held different views on the value of the external accountant’s work.
The external accountants did not conduct an audit nor did they check that the balances produced by their client’s accounting system were reasonable. They had been instructed just to prepare accounts from the information given to them and did no more. However, in spite of this, the sponsoring body and the members of the organisation read far more into and place more reliance on the work done by external accountants.
Our audit revealed that there had been a very poor level of accountability in the organisation, with poor controls not improving as the levels of activity grew. We made recommendations for improved accountability and governance at that particular public body and more widely for similar bodies.