<\/p>\n
Auditor General Tsakani Maluleke has made damning findings against the Compensation Fund with it obtaining yet another disclaimer of audit opinion for the 2021\/22 financial year.<\/p>\n
Maluleke said she was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the entity\u2019s financial statements.<\/p>\n
\u201cDue to the limitations imposed on the scope of the audit by management, I have disclaimed my opinion on the financial statements.<\/p>\n
\u201cHad it not been for the legislated requirement to perform the audit of the public entity, I would have withdrawn from the engagement in terms of the International Standards on Auditing,\u201d she said.<\/p>\n
The fund had submitted its annual statement for the auditing of its finances a year after the scheduled deadline, a move that impacted the auditing of statements for 2022\/23, which are still to be audited.<\/p>\n
In her report, Maluleke found significant internal control deficiencies in the Compensation Fund that resulted in the disclaimer of opinion.<\/p>\n
The fund\u2019s audit action plan was found ineffective as its implemented actions fell short in rectifying material misstatements and internal control deficiencies from the previous year.<\/p>\n
\u201cThe public entity\u2019s approach to implementing preventive and detective controls has proven insufficient in ensuring the reliability of both financial and performance reporting.<\/p>\n
\u201cThe consequences of this deficiency are notably evident in the discovery of material misstatements within the financial statements and performance reports.\u201d<\/p>\n
Maluleke also found the Compensation Fund\u2019s commitment to compliance with relevant laws and regulations wanting due to the lack of effective controls.<\/p>\n
\u201cThis deficiency underscores a gap in the entity\u2019s efforts to uphold legal and regulatory standards.\u201d<\/p>\n
The A-G also said she was unable to confirm irregular expenditure by alternative means as the public entity\u2019s records did not permit.<\/p>\n
\u201cI was unable to determine whether any adjustments were necessary to the irregular expenditure stated at R456 million (2021: R702 million) in note 38 to the financial statements.\u201d<\/p>\n
She said the Compensation Fund did not record all instances of fruitless and wasteful expenditure incurred in the current and prior year due to duplicate payments made. \u201cI was unable to obtain sufficient appropriate audit evidence to confirm whether all fruitless and wasteful expenditure for the current and prior year had been recorded. Consequently, I was unable to determine whether any adjustments were necessary to fruitless and wasteful expenditure, as stated at R629 million (2021: R646 million) in note 37 to the financial statements.\u201d<\/p>\n
Acting Compensation Fund commissioner Farzana Fakir said the disclaimer audit opinions over the years due to the Compensation Fund\u2019s weak internal controls were a concern that needed urgent attention.<\/p>\n
Cape Times<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Auditor General Tsakani Maluleke has made damning findings against the Compensation Fund with it obtaining yet another disclaimer of audit opinion for the 2021\/22 financial year. Maluleke said she was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the entity\u2019s financial statements. \u201cDue to the limitations imposed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[7816,890,2638,11420,7598],"class_list":["post-204668","post","type-post","status-publish","format-standard","category-politics","tag-audit","tag-compensation","tag-fund","tag-outcome","tag-scathing"],"yoast_head":"\n