Public Financial Management Auditing Training Course

Course Introduction

Public financial management is central to the effective stewardship of public resources and the achievement of government policy and service-delivery objectives. Weaknesses in budgeting, revenue administration, expenditure controls, procurement, treasury operations or financial reporting can undermine accountability and reduce the value obtained from public funds. Auditors therefore require a comprehensive understanding of how public resources are planned, authorised, collected, spent, recorded and reported across the full public financial management cycle.

The Public Financial Management Auditing Training Course provides a structured and practical framework for auditing government financial management systems and assessing whether public resources are managed in accordance with applicable laws, policies, approved budgets and established control requirements. Participants will examine the complete PFM cycle, from fiscal planning and budget formulation through execution, accounting, reporting, oversight and corrective action, while considering the specific accountability characteristics of public-sector institutions.

Effective PFM auditing requires auditors to look beyond individual transactions and understand how financial governance, institutional responsibilities, budget structures, control systems and public accountability mechanisms interact. Participants will learn how to assess the design and operating effectiveness of controls governing revenue, expenditure, commitments, payments, cash, procurement, assets and financial reporting. Particular attention will be given to audit evidence, materiality, risk assessment and the identification of systemic weaknesses that can affect public financial performance.

The programme also addresses the growing importance of digital public financial management systems. Government financial operations increasingly depend on integrated financial management information systems, electronic procurement, digital revenue platforms, automated payment systems and data-driven reporting. Participants will explore how auditors can use system-generated information and data analytics to identify unusual transactions, control exceptions, budget variances, duplicate payments, revenue leakage and other indicators requiring further examination.

Public financial management auditing also has an important performance and accountability dimension. Auditors must increasingly consider whether public resources are being used economically, efficiently and effectively, while maintaining appropriate separation between financial audit conclusions and management or policy decisions. The course therefore incorporates performance analysis, value-for-money considerations, programme expenditure, fiscal risks and public-sector outcomes alongside traditional financial control assessment.

The course concludes with advanced reporting, governance communication, follow-up and emerging PFM risks. Participants will learn how to communicate significant financial management weaknesses clearly to management, oversight bodies and other authorised stakeholders, develop practical recommendations and monitor corrective actions. The programme is designed to strengthen the ability of public-sector auditors and assurance professionals to provide credible, risk-based insight into the stewardship, accountability and performance of public resources.

Duration

10 days

Who Should Attend

• Internal auditors working in ministries, departments, agencies, counties and other public institutions.

• Public-sector external auditors responsible for auditing government financial management systems.

• Public financial management professionals responsible for budgeting, expenditure and financial accountability.

• Government accountants involved in public-sector financial reporting and control processes.

• Treasury and finance officers responsible for public funds, cash management and fiscal operations.

• Budget officers responsible for planning, allocation, execution and monitoring of public resources.

• Procurement and contract management professionals working within public-sector institutions.

• Risk and compliance professionals assessing public financial management risks and controls.

• Audit managers supervising government financial, compliance and performance audit engagements.

• Public-sector governance professionals supporting accountability, oversight and institutional performance.

• Development and donor-funded programme professionals managing public resources and financial controls.

• Investigators examining fraud, corruption, financial leakage and misuse of public funds.

• Members of audit, risk and financial oversight functions within public institutions.

• Senior public-sector managers seeking to strengthen financial accountability and resource stewardship.

Course Objectives

• Develop a comprehensive understanding of public financial management systems, accountability structures and the auditor’s role in assessing stewardship of public resources.

• Apply risk-based approaches to auditing the complete public financial management cycle from fiscal planning and budgeting through execution, accounting and reporting.

• Evaluate governance arrangements, institutional responsibilities and internal controls supporting transparent, accountable and compliant management of government resources.

• Assess budget formulation, approval, execution, monitoring and reporting processes and identify weaknesses that may affect fiscal discipline or resource allocation.

• Audit public revenue systems to identify weaknesses in assessment, collection, recording, reconciliation, enforcement, receipting and transfer of government revenues.

• Examine expenditure management controls covering commitments, authorisation, payment processing, accounting, reconciliations and expenditure reporting.

• Evaluate public procurement and contract expenditure controls and identify financial, compliance, fraud and value-for-money risks affecting public resources.

• Assess treasury, cash management, banking, commitment control and payment systems to identify weaknesses that could contribute to financial loss or fiscal risk.

• Examine public-sector accounting and financial reporting processes for accuracy, completeness, transparency, compliance and reliable presentation of financial information.

• Use data analytics and digital audit techniques to identify anomalies, duplicate payments, unusual transactions, budget variances, revenue leakage and control exceptions.

• Prepare clear PFM audit findings and recommendations that communicate root causes, financial implications, governance risks and practical corrective actions.

• Strengthen public financial management assurance through effective follow-up, performance monitoring, emerging-risk assessment and continuous improvement of financial controls.

Comprehensive Course Outline

Module 1: Foundations of Public Financial Management Auditing

• Concepts, objectives and components of public financial management and their relationship to government accountability and service delivery.

• The public financial management cycle from fiscal policy and planning through budgeting, execution, accounting, reporting and oversight.

• Roles of internal audit, external audit, treasury, finance departments, oversight bodies and management within public financial accountability.

• Principles of legality, regularity, transparency, accountability, stewardship, professional scepticism and evidence-based public-sector auditing.

Module 2: Public Financial Governance and Accountability Frameworks

• Public-sector financial governance structures, institutional mandates and accountability relationships across central and subnational government entities.

• Roles of legislatures, audit institutions, treasury authorities, finance ministries, accounting officers and management in financial oversight.

• Delegation of authority, financial responsibilities, accountability mechanisms and controls governing the use of public resources.

• Assessing whether governance frameworks support clear responsibility, effective oversight, transparency and timely resolution of financial management weaknesses.

Module 3: PFM Risk Assessment and Audit Planning

• Identifying financial, compliance, operational, fiscal, fraud and governance risks across public financial management processes.

• Developing public-sector audit universes and prioritising PFM engagements according to materiality, risk exposure and control significance.

• Translating PFM risks into audit objectives, scope, procedures, testing strategies and evidence requirements.

• Designing dynamic audit plans that respond to emerging fiscal pressures, programme changes, system transformations and significant control weaknesses.

Module 4: Public Budgeting and Fiscal Management Auditing

• Auditing budget formulation, approval, classification, allocation and alignment with authorised public-sector financial plans.

• Assessing budget execution, commitment control, virements, supplementary allocations and expenditure against approved appropriations.

• Analysing budget-to-actual variances and determining whether significant deviations are adequately explained, authorised and monitored.

• Evaluating medium-term fiscal planning, expenditure ceilings, fiscal risks and controls supporting sustainable public resource management.

Module 5: Public Revenue Management and Collection Auditing

• Auditing revenue assessment, billing, receipting, collection, recording, reconciliation and transfer processes within public institutions.

• Identifying revenue leakage, unrecorded collections, delayed banking, unauthorised waivers and weaknesses in revenue control systems.

• Testing revenue completeness through reconciliations, independent data sources, exception analysis and transaction-level audit procedures.

• Evaluating digital revenue collection platforms, automated controls and information systems supporting government revenue administration.

Module 6: Public Expenditure and Payment Auditing

• Auditing expenditure initiation, commitment, approval, verification, payment and accounting processes across government institutions.

• Evaluating controls over payment vouchers, supporting documentation, authorisation, segregation of duties and electronic payment workflows.

• Identifying irregular, unsupported, duplicate, unauthorised or potentially fraudulent expenditure through systematic transaction testing.

• Assessing expenditure classification, commitment accounting, arrears, outstanding obligations and the accuracy of expenditure reporting.

Module 7: Procurement, Contracting and Public Resource Acquisition

• Auditing public procurement planning, tendering, evaluation, award, contract approval and payment processes.

• Assessing procurement controls for competition, transparency, segregation of duties, conflicts of interest and compliance with applicable requirements.

• Examining contract payments, variations, extensions, deliverables and supporting documentation for financial and performance risks.

• Identifying procurement fraud, collusion, inflated pricing, fictitious suppliers, conflicts and other threats to public financial integrity.

Module 8: Treasury, Cash and Commitment Management

• Auditing government cash management, banking arrangements, cash forecasting, reconciliations and control over public funds.

• Evaluating commitment controls designed to prevent unauthorised obligations, overspending and accumulation of unsupported financial liabilities.

• Assessing payment processing, electronic transfers, bank reconciliations, suspense accounts and management of outstanding transactions.

• Examining idle funds, cash concentration, advances, imprests and other treasury-related balances for control and accountability weaknesses.

Module 9: Public Accounting, Financial Reporting and Fiscal Accountability

• Evaluating public-sector accounting systems, chart of accounts, transaction classification and financial recordkeeping processes.

• Auditing the completeness, accuracy, timeliness and reliability of government financial statements and related financial disclosures.

• Testing reconciliations, suspense accounts, control accounts, adjustments and year-end procedures for potential reporting weaknesses.

• Assessing transparency, consistency and accountability in financial reporting to management, oversight institutions and other authorised stakeholders.

Module 10: Public Assets, Inventory and Resource Stewardship

• Auditing acquisition, recording, custody, utilisation, maintenance, verification and disposal of public-sector assets.

• Evaluating controls over fixed assets, vehicles, equipment, inventories, stores and other publicly owned resources.

• Identifying obsolete, missing, idle, improperly recorded or potentially misappropriated public assets through physical and documentary verification.

• Assessing asset registers, inventory reconciliations, impairment considerations, disposal processes and accountability for public resources.

Module 11: PFM Information Systems, Data Analytics and Digital Controls

• Auditing financial management information systems supporting budgeting, accounting, procurement, revenue and expenditure processes.

• Evaluating automated controls, user access, segregation of duties, system interfaces, audit trails and data integrity within PFM systems.

• Applying data analytics to identify duplicate payments, unusual transactions, budget exceptions, revenue anomalies and potentially irregular activity.

• Assessing emerging digital PFM technologies, artificial intelligence applications, automated decision processes and associated governance and assurance risks.

Module 12: Fraud, Corruption and Financial Integrity in PFM

• Assessing fraud and corruption risks across budgeting, procurement, revenue, payroll, payments, assets and other public financial processes.

• Identifying indicators of fictitious transactions, conflicts of interest, bribery, kickbacks, payroll manipulation and diversion of public resources.

• Evaluating management override, collusion, weak segregation of duties and control circumvention as contributors to public financial misconduct.

• Integrating fraud risk assessment, investigative referrals and audit findings while maintaining appropriate boundaries between assurance and formal investigation functions.

Module 13: Performance, Economy, Efficiency and Value-for-Money Auditing

• Applying performance audit concepts to assess economy, efficiency and effectiveness in the use of public financial resources.

• Examining programme expenditure, outputs, resource utilisation and performance information to identify potential inefficiencies or waste.

• Analysing cost structures, procurement outcomes, resource allocation and service-delivery performance using appropriate audit evidence.

• Distinguishing financial compliance findings from performance observations while demonstrating clear links between resources, activities and measurable results.

Module 14: Fiscal Risks, Public Debt and Emerging PFM Issues

• Assessing fiscal risks arising from public debt, guarantees, contingent liabilities, arrears, public-private arrangements and major government commitments.

• Examining financial implications of state-owned entities, infrastructure programmes and other significant public-sector financial exposures.

• Evaluating emerging risks associated with digital finance, climate-related fiscal pressures, economic volatility and changing public expenditure patterns.

• Developing forward-looking PFM audit approaches that identify systemic risks before they develop into significant financial management weaknesses.

Module 15: PFM Audit Reporting, Recommendations and Follow-Up

• Developing clear audit findings covering condition, criteria, cause, effect, evidence, financial implications and risk significance.

• Communicating significant public financial management weaknesses to accounting officers, management, oversight bodies and authorised stakeholders.

• Developing practical recommendations addressing root causes, control weaknesses, governance deficiencies and financial accountability gaps.

• Monitoring implementation of corrective actions and assessing whether agreed improvements have been effectively and sustainably implemented.

Module 16: Advanced Public Financial Management Assurance Strategy

• Integrating financial, compliance, performance, IT, fraud and governance auditing into a coordinated public financial management assurance framework.

• Developing advanced risk-based PFM audit strategies that respond to fiscal pressures, digital transformation and changing public-sector operating environments.

• Establishing data-driven and continuous assurance approaches for monitoring public revenues, expenditures, commitments and financial control performance.

• Strengthening long-term public financial accountability through audit intelligence, governance communication, institutional learning and sustainable control improvement.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808

Training Venue 

The training will be held at our Upskill Training Centre. We also offer training for a group (at a discount of 10% to 50%) at requested location all over the world. The Onsite course fee covers the course tuition, training materials, two break refreshments, buffet lunch, airport transfers, Upskill gift package, and guided tour.

Visa application, travel expenses, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Upskill certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808

Terms of Payment:

Unless otherwise agreed between the two parties’ payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better.