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
Volume 8, Issue 3, May 2020, Pages: 136-142
Received: Apr. 29, 2020; Accepted: May 21, 2020; Published: Jun. 4, 2020
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Edmond Lyonga, Department of Finance, Faculty of Business Administration, South College, Knoxville, USA
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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.
Auditing Approach, Financial Management, Planning, Budgeting, Financial Fraud
To cite this article
Edmond Lyonga, 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. Vol. 8, No. 3, 2020, pp. 136-142. doi: 10.11648/j.jfa.20200803.14
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