Journal of Finance and Accounting

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Auditing as a Vital Component to the Financial Management of Local Councils in Cameroon; the Case of Buea Rural Council

Received: Apr. 29, 2020    Accepted: May 21, 2020    Published: Jun. 04, 2020
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Abstract

The lack of efficient and effective utilization of financial resources could destroy a municipal council. Proper auditing standards could help the city councils avert financial mismanagement from some unscrupulous individuals who are out to damage the reputation of the leaders and make their hard work unnoticed. This qualitative case study was on the premise that proper auditing could help reduce or eradicate financial mismanagement and consequently aid in the improvement of the business portfolio of the municipality for the benefit of all. A qualitative descriptive method was used, and twelve executives interviewed within the four local councils' financial management structure. This article addressed two specific arguments: The first argument challenges the contention that the council must be managed according to the political party ideology to achieve goals and objectives. The second refutes the assertion that the council’s management, in line with the party’s ideology will enhance efficiency and productivity. The following research questions were addressed: RQ1: Who do you think is responsible for the financial management of councils? RQ2: What are the auditing structures and procedures in place within your council for proper transparency in the usability of finances? RQ3: What do you think; should we change or maintain the current system in place for the financial management within the council? RQ4: How can we address the issues of financial fraud within councils? RQ5: Who should we hold accountable for poor financial performance within the councils? Addressing those concerns and from the data gathered, it suffices to conclude that Georgopoulos pathway theory which is a bad managerial instrument practiced by some council staff should be avoided by management because it sees favoritism as path to success. Eroding dissatisfaction (Hygiene) and replacing it with satisfaction (motivation), Herzberg’s two factor theory will guide the management towards financial success.

DOI 10.11648/j.jfa.20200803.14
Published in Journal of Finance and Accounting ( Volume 8, Issue 3, May 2020 )
Page(s) 136-142
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Auditing Approach, Financial Management, Planning, Budgeting, Financial Fraud

References
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[3] Frank, K. (2017). Fraud theory approach: a methodology for forensic accountants to effectively discover financial Statements misrepresentations. Retrieved from file:///C:/Users/Edmond/Downloads/Fraud%20Theory%20Approach%20(1).pdf.
[4] Harrison, H., Birks, M., Franklin, R., and Mills, J. (2017). Case Study Research: Foundations and Methodological Orientations [34 paragraphs]. Forum Qualitative Sozialforschung / Forum: Qualitative Social Research, 18 (1), Art. 19, http://nbn-resolving.de/urn:nbn:de:0114-fqs1701195.
[5] Hinke, J., Gezo, M., Smutka, L., & Strielkowski, W. (2020). Management of financial statements auditing in the visegrad group countries. Problems and Perspectives in Management, 18 (1), 1-16. doi: 10.21511/ppm.18(1).2020.01.
[6] Jones, G., & Beattie, C. (2015). Local government internal audit compliance. Australasian Accounting Business & Finance Journal, 9 (3), 59-71. Retrieved from https://search.proquest.com/docview/1770070923?accountid=30659.
[7] Local Government chronicle, local Government Reforms ‘14th June 1991”.
[8] Maclean, S. (2014). Examining auditing as an essential element of financial management and good governance in local government. Africa's Public Service Delivery and Performance Review, 2 (2) doi: http://dx.doi.org/10.4102/apsdpr.v2i2.53.
[9] Ojo, O. (2018). Efficient Financial Management for Local Governments: The Nigerian Experience.
[10] Oosthuizen, M., & Thornhill, C. (2017). The grant system of financing the South African local government sphere: Can sustainable local government be promoted? Local Economy, 32 (5), 433–450. https://doi.org/10.1177/0269094217721683.
[11] Osuala. E. C (1993). Introduction to research methodology (2nd Ed) Onitsha, Nigeria: Africana, FEP publication ltd;
[12] Reddy, P. (2018). Evolving local government in post conflict South Africa: Where to? Local Economy, 33 (7), 710–725. https://doi.org/10.1177/0269094218809079.
[13] Reed, P., & Watmough, S. (2015). Hygiene factors: Using VLE minimum standards to avoid student dissatisfaction. E-Learning and Digital Media, 12 (1), 68–89. https://doi.org/10.1177/2042753014558379.
[14] Świrska, A. (2016). methods for improving the effectiveness of the financial management of local government units in poland. Science and Studies of Accounting and Finance: Problems and Perspectives, 10 (1), 177-185. doi: 10.15544/ssaf.2016.17.
[15] Swisher, R. J. (2016). Financial mismanagement differences between municipal councils with and without financial expertise (Order No. 10056408). Available from Accounting & Tax Database. (1776610804). Retrieved from https://search.proquest.com/docview/1776610804?accountid=30659.
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  • APA Style

    Edmond Lyonga. (2020). Auditing as a Vital Component to the Financial Management of Local Councils in Cameroon; the Case of Buea Rural Council. Journal of Finance and Accounting, 8(3), 136-142. https://doi.org/10.11648/j.jfa.20200803.14

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    ACS Style

    Edmond Lyonga. Auditing as a Vital Component to the Financial Management of Local Councils in Cameroon; the Case of Buea Rural Council. J. Finance Account. 2020, 8(3), 136-142. doi: 10.11648/j.jfa.20200803.14

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    AMA Style

    Edmond Lyonga. Auditing as a Vital Component to the Financial Management of Local Councils in Cameroon; the Case of Buea Rural Council. J Finance Account. 2020;8(3):136-142. doi: 10.11648/j.jfa.20200803.14

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  • @article{10.11648/j.jfa.20200803.14,
      author = {Edmond Lyonga},
      title = {Auditing as a Vital Component to the Financial Management of Local Councils in Cameroon; the Case of Buea Rural Council},
      journal = {Journal of Finance and Accounting},
      volume = {8},
      number = {3},
      pages = {136-142},
      doi = {10.11648/j.jfa.20200803.14},
      url = {https://doi.org/10.11648/j.jfa.20200803.14},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jfa.20200803.14},
      abstract = {The lack of efficient and effective utilization of financial resources could destroy a municipal council. Proper auditing standards could help the city councils avert financial mismanagement from some unscrupulous individuals who are out to damage the reputation of the leaders and make their hard work unnoticed. This qualitative case study was on the premise that proper auditing could help reduce or eradicate financial mismanagement and consequently aid in the improvement of the business portfolio of the municipality for the benefit of all. A qualitative descriptive method was used, and twelve executives interviewed within the four local councils' financial management structure. This article addressed two specific arguments: The first argument challenges the contention that the council must be managed according to the political party ideology to achieve goals and objectives. The second refutes the assertion that the council’s management, in line with the party’s ideology will enhance efficiency and productivity. The following research questions were addressed: RQ1: Who do you think is responsible for the financial management of councils? RQ2: What are the auditing structures and procedures in place within your council for proper transparency in the usability of finances? RQ3: What do you think; should we change or maintain the current system in place for the financial management within the council? RQ4: How can we address the issues of financial fraud within councils? RQ5: Who should we hold accountable for poor financial performance within the councils? Addressing those concerns and from the data gathered, it suffices to conclude that Georgopoulos pathway theory which is a bad managerial instrument practiced by some council staff should be avoided by management because it sees favoritism as path to success. Eroding dissatisfaction (Hygiene) and replacing it with satisfaction (motivation), Herzberg’s two factor theory will guide the management towards financial success.},
     year = {2020}
    }
    

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    Y1  - 2020/06/04
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    AB  - The lack of efficient and effective utilization of financial resources could destroy a municipal council. Proper auditing standards could help the city councils avert financial mismanagement from some unscrupulous individuals who are out to damage the reputation of the leaders and make their hard work unnoticed. This qualitative case study was on the premise that proper auditing could help reduce or eradicate financial mismanagement and consequently aid in the improvement of the business portfolio of the municipality for the benefit of all. A qualitative descriptive method was used, and twelve executives interviewed within the four local councils' financial management structure. This article addressed two specific arguments: The first argument challenges the contention that the council must be managed according to the political party ideology to achieve goals and objectives. The second refutes the assertion that the council’s management, in line with the party’s ideology will enhance efficiency and productivity. The following research questions were addressed: RQ1: Who do you think is responsible for the financial management of councils? RQ2: What are the auditing structures and procedures in place within your council for proper transparency in the usability of finances? RQ3: What do you think; should we change or maintain the current system in place for the financial management within the council? RQ4: How can we address the issues of financial fraud within councils? RQ5: Who should we hold accountable for poor financial performance within the councils? Addressing those concerns and from the data gathered, it suffices to conclude that Georgopoulos pathway theory which is a bad managerial instrument practiced by some council staff should be avoided by management because it sees favoritism as path to success. Eroding dissatisfaction (Hygiene) and replacing it with satisfaction (motivation), Herzberg’s two factor theory will guide the management towards financial success.
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Author Information
  • Department of Finance, Faculty of Business Administration, South College, Knoxville, USA

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