The discussion on the extent to which audit committees perform the oversight function of financial governance is important. This is particularly so in the Eastern Cape where the implementation of the Public Finance Management Act (PFMA) of 1999 has not significantly improved financial management. The deteriorating financial management environment of provincial departments impacts negatively on service delivery and is therefore a matter of great concern to the political administrators at both national and provincial levels. The objective of this study is to determine how effective audit committees are in Eastern Cape provincial departments and how this translates into good financial governance and, ultimately, improved service delivery. To achieve this objective, a literature review of the link between audit committee effectiveness, accountability and corporate governance in the public sector was conducted. It was found that audit committees in the public sector have similar responsibilities to that of the private sector and lack of accountability in the public sector impacts negatively on service delivery. A second literature review was conducted to highlight the current state of public financial management in South Africa and how this has had an impact on financial management in Eastern Cape provincial departments. A qualitative research methodology was applied because the researcher is of the opinion that the research question asked is more interpretive than predictive. An interview survey was conducted in which senior management officials were selected from provincial departments and interviewed using semi-structured questions. The research study concluded, that provincial departments in the Eastern Cape have all established audit committees in line with the Public Finance Management Act (PFMA) National Treasury regulations. These committees are however ineffective. Ineffectiveness is as a result of, among other factors, lack of stability in accounting officer and chief financial officer positions. Secondly, senior management have not been made to account for the persistent negative audit outcomes in their departments. The research recommends that the political leadership of the province should ensure stability in leadership, particularly in the position of accounting officer and the chief financial officer.

Thesis M.COM. (Accounting)) -- University of Limpopo, 2019 / The apparent weaknesses in corporate governance of state-owned enterprises and poor audit reports have heightened the concern of investors and the state as the major shareholder of these enterprises returns. Audit committees as a mechanism for good corporate governance plays a major role in enterprise performance. These state-owned enterprises play a vital role in the economy of South Africa. This study examines the effect of audit committee composition (independence, gender diversity, financial expertise and size) on financial performance measured by return on assets using major state-owned enterprises listed on Schedule 2 of PFMA. The results show that the audit committee size, gender diversity and financial expertise has an insignificant positive relationship with ROA, whereas the independence of audit committee members has an insignificant negative association. The result of the study may be beneficial to various stakeholders and boards of enterprises to make some proper decisions on audit committee composition to attract more investors and at the same time safeguarding the investments of shareholders.

Audit committees (ACs) can enhance corporate governance in the public sector, particularly in State Owned Enterprises (SOEs). This study adopted a qualitative research approach to identify factors contributing to the effectiveness of ACs in selected Namibian SOEs to provide sound corporate governance. The empirical data was collected primarily through semi-structured interviews with participants as well as from field notes and company documents. The study highlighted certain AC characteristics and practices contributing to the effectiveness of ACs in selected Namibian SOEs to provide sound corporate governance. The mandate, composition, managing the activities of the AC, performance assessment of the members of the AC and reporting of the AC if applied correctly can enhance effectiveness of ACs. The study also highlighted weaknesses, suggesting that some of the ACs needed improvement in order to enhance corporate governance at SOEs. / College of Accounting Sciences / M. Phil. (Accounting Sciences)