The financial audit process has provided much transparency into the internal control structure and the ability of local governments to remain fiscally stable. The outcomes of many of these audits have provided much information regarding the ability of local governments to provide services in a timely and efficient manner. Even with the implementation of stricter legislation and more stringent accounting standards in addition to an increased level of state oversight, irregular practices and mismanagement continue to occur. This study examines the independent auditor findings in professionally administered governments in North Carolina. Findings indicate numerous reporting problems within a majority of county governments ranging from internal control problems to reconciliation issues that are required to be addressed for information users that question the sustainability of the unit. Lengthy audits processes, less expensive audits and smaller governments that do not have the ability to employ more accountants or accounting specialists are among the factors that increase the probability of reporting problems and inaccurate data.
Modlin, S. (2012), "county government finance practices: What independent auditors are finding and what makes local government susceptible", Journal of Public Budgeting, Accounting & Financial Management, Vol. 24 No. 4, pp. 558-578. https://doi.org/10.1108/JPBAFM-24-04-2012-B002Download as .RIS
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