13.4 The parties to audit in public sector-auditor, responsible party and intended users

In the context of auditing in the public sector, there are three primary parties involved: the auditor, the responsible party, and the intended users. Here’s an overview of each party:

1. Auditor:
   • The auditor refers to the independent auditing body or entity responsible for conducting the audit of the public sector entity.
   • The auditor is typically an external entity, such as the Office of the Auditor General or an independent audit firm, appointed to perform audits in accordance with applicable laws, regulations, and auditing standards.
   • The auditor’s role is to provide an objective and unbiased assessment of the audited entity’s financial management, compliance with laws and regulations, and performance.
2. Responsible Party:
   • The responsible party refers to the management or governance body of the audited public sector entity.
   • This party is responsible for the entity’s financial management, operations, and compliance with laws and regulations.
   • The responsible party is accountable for the accuracy and completeness of the financial statements and the effectiveness of internal controls within the audited entity.
3. Intended Users:
   • Intended users are the individuals or entities for whom the audit reports are prepared and intended to be used.
   • In the public sector, the intended users of audit reports can vary but typically include government officials, oversight bodies, legislative bodies, and the general public.
   • These users rely on the audit reports to gain assurance about the financial integrity, compliance, and performance of the audited public sector entities.