Comparative Study Of Public Sector Audit And Private Sector Audit

Abstract

This study covers the areas in auditing in public and private sector in Pakistan, This study shows how auditing is done in public sectors as compared to private sectors. In private audit firms auditors are mostly well qualified as per requirement of ICAP and companies ordinance whereas auditors in public sectors are not qualified as there is weak corporate governance. ICAP and companies ordinance requires an auditor to be a chartered accountant while in AGPR there are auditors bearing only 16 years of education due to weakness of HR. Auditing in Public sector and in private sector is very different in Pakistan. Audit in public establishments is done by Audit general Pakistan and private companies audit is done by private audit firms. The audit in public sectors are not done with integrity and honesty due to nepotism and feudal system in AGPR. There are quite a few threats to the public auditor’s independence. The corporate governance in public sectors are weak as well which leads to more corruption and fraud. The duties of employees in public sectors are not defined and their jobs are permanent whereas in private sectors an employee can easily be terminated.