D. Auditing Auditing plays a critical role in public finance. Indeed, auditing is essential to the credibility of accounting and financial reporting by state and local governments. Yet, despite the undeniable importance of auditing, many outside the auditing profession do not always understand it. This course will provide clear and practical information about auditing in the public sector, including key auditing concepts and terms, in a manner that is understandable and at the same time dispels many misconceptions about auditing frequently encountered in practice. E. Internal Controls and Fraud Prevention Public sector managers have a special duty to the public to ensure that a governments resources are properly managed.
Good management requires the maintenance of sound internal controls.
Internal controls are needed to protect a governments assets against the danger of loss or misuse. Internal controls also are necessary to ensure that all transactions are properly authorized, and that the data contained in financial reports are reliable. Even the best-designed internal controls cannot be effective without the active involvement of management. This course will entail the review and analysis of case studies involving organizations that have dealt with financial difficulties or controversy. Individual research will be required for purposes of evaluating specific case studies.