ZIMBABWE URBAN LOCAL AUTHORITIES AUDIT COMMITTEE FRAMEWORK: AN INTERNATIONAL COMPARISON

Abstract

Purpose of the study: The aim of this paper was to compare the legal and regulatory frameworks governing Urban municipal Audit Committees in the USA, UK, South Africa and Zimbabwe and recommended best practices for the Zimbabwe.

Theoretical Framework: Literature revealed that Municipal councils audit committee legal and regulatory frameworks vary from one jurisdiction to the other. These are designed to mainly prescribe suitable characteristics of the committees for improvement of their effectiveness. Characteristics widely discussed in literature include the size, independence, composition, members qualifications. However, there is still much to explore on how municipal audit committee models from different jurisdictions can be applied to a developing country such as Zimbabwe.

Design/Methodology/approach: A purposive sample of countries namely Zimbabwe, South Africa, UK, USA representing different political, legal, and economic jurisdictions was selected. Primary documents governing the municipal audit committees were identified, analysed, results tabulated compared, contrasted and recommendations made for Zimbabwe local authorities.

Findings: Municipal council audit committees regulatory and legal frameworks are country specific and there are common features from different jurisdictions. Developed countries are using a voluntary approach to the use of audit committees with guidance coming from initiatives by professional public sector accounting bodies. On the other hand, developing countries mainly rely on legal instruments to prescribe requirements on the composition, size, qualifications and independence committees.

Research, Practical and social implications: Recommendations from this study will be useful to lawmakers in crafting legal provisions governing audit committees in Zimbabwe’s urban local authorities.