PUB4870 ASSIGNMENT 4 2025
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY OF PUB4870.
THIS REPORT IS INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH
THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD STARTING POINT AS IT
WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO
ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS
SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR DISCUSSION BY
OTHER AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM
MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF THE ANSWERS
CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER
GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE
IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION
PREPARATION, RESEARCH AND RESEARCH PROPOSALS, DISSERTATION
EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ,
UP etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 or
email
,PUB4870 ASSIGNMENT 4 2025
QUESTIONS
Introduction
The evaluation of internal control systems is a vital task meant to establish their
performance and effectiveness in a public organization. It is among an auditor's
mandates since they are mandated to review the system, identify their weaknesses,
and assess their impact on the overall assessment method. The principal purpose of
such an evaluation is to determine whether the purposes of the control system are
being repeatedly fulfilled as per institutional policy and to ensure that its make-up is
sufficient, including if there are criteria, measurement methods, and reporting [p. 59,
3.2(a)]. The control environment is the foundation of all the other aspects of internal
control, and it introduces required discipline and structure into the institution. However,
there are certain critical factors that can significantly impair the effectiveness of such
a critical control environment in evaluations, and it is therefore extremely essential to
understand these factors in order to have a thorough and effective evaluation of
internal controls. Government seriousness with regards to internal controls manifests
itself through legislation including provisions covering financial misconduct,
expressing a clear commitment towards having effective and efficient public financial
administration and management as well as encouraging accountability and
transparency
.Public Finance Management Act (PFMA)
1 Describe the key provisions of the PFMA of 1999 that relate to internal control
systems. Discuss how these provisions contribute to financial accountability and
transparency in public institutions. (10)
achieve intended outcomes. The 1999 Public Finance Management Act (PFMA) is
pivotal in its function to provide the framework for public financial accountability and
openness in South Africa, above all through its emphasis on internal systems of
control. The PFMA enforces certain duties and reinforces management boards,
ensuring that public finances are managed successfully and with integrity.
One of the key provisions of the PFMA is Section 38(1)(a), through which accounting
officers are required to have and sustain effective, efficient, and transparent systems
of internal control and systems of internal audit under the direction of an audit
committee. This provision establishes a direct relationship between internal control
, PUB4870 ASSIGNMENT 4 2025
and efficiency and transparency and thereby constitutes a basis for good financial
management. Moreover, Section 39 mandates accounting officers to institute
appropriate and effective measures to prevent unauthorised expenditure and
overspending of their budgetary allocations. This is a testament to the PFMA's policy
of budgetary control as part of internal control and thus ensuring financial discipline.
The Act further reinforces accountability through a prescript of consequences for
default. Section 37 renders it a financial misconduct, liable for disciplinary action,
where there is gross or wilful negligence in implementing the provisions of sections
38, 39, or 40. It is a disciplinary action which underscores the seriousness with which
the government views adhering to rules of internal controls. Secondly, Section 40
requires accounting officers to keep full and proper records of the financial affairs of
the public institution so that accurate financial statements can be prepared for the
purposes of reporting to various authorities. This requirement of precise book-keeping
is central to financial transparency.
Aside from accounting authorities, the PFMA extends accountability to other
authorities. As stated in section 45(a), authorities to whom power has been delegated
in writing should also see that an internal control system is established within their
areas of responsibility. Deliberate or negligent failure on their part to adhere to
delegated obligations constitutes financial misconduct. The multi-layered design to
responsibility assists in strengthening accountability throughout the public agency.
The PFMA also strengthens oversight bodies. Section 6(2)(e) allows the National
Treasury to scrutinize any system of internal control in any department, public entity,
or constitutional institution, and Section 18(2)(f) confers the same powers on provincial
treasuries. The powers of investigation allow monitoring of the effectiveness of internal
control systems and enforcing compliance in the event of non-compliance, thereby
ensuring accountability. Further, Section 76(4)(b) empowers the National Treasury to
make regulations or give instructions on internal control. Sections 76(4)(d) and (e) and
Section 77 deal with the appointment and functioning of audit committees and internal
audit units, which are considered to be integral elements in the provision and
strengthening of internal control mechanisms. The Public Audit Act 25 of 2004 further
facilitates this by prescribing the Auditor-General's right to ascertain the efficiency and
effectiveness of internal control and management processes.
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY OF PUB4870.
THIS REPORT IS INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH
THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD STARTING POINT AS IT
WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO
ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS
SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR DISCUSSION BY
OTHER AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM
MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF THE ANSWERS
CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER
GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE
IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION
PREPARATION, RESEARCH AND RESEARCH PROPOSALS, DISSERTATION
EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ,
UP etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 or
,PUB4870 ASSIGNMENT 4 2025
QUESTIONS
Introduction
The evaluation of internal control systems is a vital task meant to establish their
performance and effectiveness in a public organization. It is among an auditor's
mandates since they are mandated to review the system, identify their weaknesses,
and assess their impact on the overall assessment method. The principal purpose of
such an evaluation is to determine whether the purposes of the control system are
being repeatedly fulfilled as per institutional policy and to ensure that its make-up is
sufficient, including if there are criteria, measurement methods, and reporting [p. 59,
3.2(a)]. The control environment is the foundation of all the other aspects of internal
control, and it introduces required discipline and structure into the institution. However,
there are certain critical factors that can significantly impair the effectiveness of such
a critical control environment in evaluations, and it is therefore extremely essential to
understand these factors in order to have a thorough and effective evaluation of
internal controls. Government seriousness with regards to internal controls manifests
itself through legislation including provisions covering financial misconduct,
expressing a clear commitment towards having effective and efficient public financial
administration and management as well as encouraging accountability and
transparency
.Public Finance Management Act (PFMA)
1 Describe the key provisions of the PFMA of 1999 that relate to internal control
systems. Discuss how these provisions contribute to financial accountability and
transparency in public institutions. (10)
achieve intended outcomes. The 1999 Public Finance Management Act (PFMA) is
pivotal in its function to provide the framework for public financial accountability and
openness in South Africa, above all through its emphasis on internal systems of
control. The PFMA enforces certain duties and reinforces management boards,
ensuring that public finances are managed successfully and with integrity.
One of the key provisions of the PFMA is Section 38(1)(a), through which accounting
officers are required to have and sustain effective, efficient, and transparent systems
of internal control and systems of internal audit under the direction of an audit
committee. This provision establishes a direct relationship between internal control
, PUB4870 ASSIGNMENT 4 2025
and efficiency and transparency and thereby constitutes a basis for good financial
management. Moreover, Section 39 mandates accounting officers to institute
appropriate and effective measures to prevent unauthorised expenditure and
overspending of their budgetary allocations. This is a testament to the PFMA's policy
of budgetary control as part of internal control and thus ensuring financial discipline.
The Act further reinforces accountability through a prescript of consequences for
default. Section 37 renders it a financial misconduct, liable for disciplinary action,
where there is gross or wilful negligence in implementing the provisions of sections
38, 39, or 40. It is a disciplinary action which underscores the seriousness with which
the government views adhering to rules of internal controls. Secondly, Section 40
requires accounting officers to keep full and proper records of the financial affairs of
the public institution so that accurate financial statements can be prepared for the
purposes of reporting to various authorities. This requirement of precise book-keeping
is central to financial transparency.
Aside from accounting authorities, the PFMA extends accountability to other
authorities. As stated in section 45(a), authorities to whom power has been delegated
in writing should also see that an internal control system is established within their
areas of responsibility. Deliberate or negligent failure on their part to adhere to
delegated obligations constitutes financial misconduct. The multi-layered design to
responsibility assists in strengthening accountability throughout the public agency.
The PFMA also strengthens oversight bodies. Section 6(2)(e) allows the National
Treasury to scrutinize any system of internal control in any department, public entity,
or constitutional institution, and Section 18(2)(f) confers the same powers on provincial
treasuries. The powers of investigation allow monitoring of the effectiveness of internal
control systems and enforcing compliance in the event of non-compliance, thereby
ensuring accountability. Further, Section 76(4)(b) empowers the National Treasury to
make regulations or give instructions on internal control. Sections 76(4)(d) and (e) and
Section 77 deal with the appointment and functioning of audit committees and internal
audit units, which are considered to be integral elements in the provision and
strengthening of internal control mechanisms. The Public Audit Act 25 of 2004 further
facilitates this by prescribing the Auditor-General's right to ascertain the efficiency and
effectiveness of internal control and management processes.
