Question $5720$ Marks

You have received an appointment as internal auditor at Phunda Municipality. During the interview you mentioned that you are busy with a post graduate diploma in organisational ethics. As a result, your first audit engagement is a consulting engagement on ethics as the municipality received several findings on ethics in their assurance report issued by the independent auditor.

Findings raised that require urgent attention are:

$$ There are no formal structures and management is of the opinion that it is not their responsibility to instill an ethical culture at the municipality.

$$ No ethics programme exists within the municipality.

Corruption and unethical practices have been identified and reported upon as a result of the independent assurance review.

Required:

a$.$ Provide the municipality with a recommendation on the governance structures required for effective managing of ethics in the municipality. Include all possible structures. Where applicable you need to use the terminology as it applies to public entities, specifically a municipality.

b$.$ Provide a short explanation of the roles and responsibilities for each structure. $(6$ marks$)$

$($Note: You can answer $($a$)$ and $($b$)$ simultaneously$)$

c$.$ Provide recommendations for developing an ethics management framework $(9$ marks$)$

d$.$ Provide recommendations for creating an ethics awareness campaign $(4$ marks$)$

e$.$ Who is most likely to have performed the external assurance review? $(1$ mark$)$