Section 83(3) of the Public Financial Management Act, 2016, Act 921 states that the Internal Auditor of

Fantastic news! We've Found the answer you've been seeking!

Question:

Section 83(3) of the Public Financial Management Act, 2016, Act 921 states that the Internal Auditor of a covered entity shall provide assurance on the efficiency, effectiveness and economy in the administration of the programmes and operations of the covered entity.

The following information was extracted from a covered entity for the month of December, 2017:

a) Machine Capacity – Monthly Output of 10,000 units

b) Maximum Market Demand for the month 6,000 units

c) Actual Production for the month 8,000 units

d) 1 (one) unit of output requires: 2 units of input

e) Standard cost of 1 unit of input GH¢ 3

f) Actual material input for the month was 15,000 units GH¢ 42,000

The covered entity uses Just in Time stock inventory management

Required
Prepare an appraisal and report on value for money on public expenditure of the covered entity for the month of January, 2017