Accounting Education Center, Nigeria.

*EFFECT OF TREASURY SINGLE ACCOUNT ON MANAGEMENT OF PUBLIC SECTOR FUND*
*PRESENTED BY: AYORINDE OLUWATUYI ON ACCOUNTING EDUCATION CENTER, NIGERIA*
*DATE: 19/2/2022*

Good evening Professional Colleagues. Thank you to each and every one of you for being here with us today. I am pleased to welcome those of you that have been with us for over a year now as well as those of you who are new to this learning Center.

*Evolution of TSA in Nigeria*
Treasury Single Account (TSA) is a financial policy in use all over the world. It was proposed by the federal government of Nigeria in 2012 under the President Jonathan Administration and was fully implemented by President Mohammed Buhari Administration.
The Federal Government officially commenced the operation of a TSA on Monday, 17th of September 2015. This effectively moved about #1.2 trillion from Nigerian Banks to the Central Bank of Nigeria.

For most Nigerians, this decision is a bold attempt at stifling corruption and ensuring government revenue is effectively mobilised and monitored.
TSA is conceptualized to consolidate all inflows from all agencies of government into a single account at the Central Bank of Nigeria.

*Initial reactions to the introduction of Treasury Single Account*
The operation of the Treasury Single Account in Nigeria has not been without controversies and reactions from Nigeria citizens. On Tuesday, 10 November 2015, Senator Dino Melaye, representing Kogi West, raised a motion that the operation of the treasury single account (TSA) be investigated for possible corruption. He claimed that "the appointment of Remita, an e-collection agent, is a gross violation of section 162 (1) of the Nigerian Constitution and the banks and other Financial Institutions Act." He claimed the constitution only recognised a banking institution to be the collector of government funds, that Remita was not a bank. The provision of the Constitution cited by Melaye states, “the federation shall maintain a special account to be called the federation account into which all revenues collected by the government of the federation except the proceeds from the personal income tax of the personnel of the Armed Forces of the Federation, the Nigeria Police Force, the ministry or department of government charged with foreign affairs and the residents of the FCT, Abuja.” According to Senator Melaye, the total inflow of 1% commission charged and received by SystemSpecs for all revenue collected on behalf of the government from the various ministries, departments and agencies to be 25 billion Naira as of November, 2015 was fraud and must be returned to the account of the Central Bank of Nigeria.
The Senate consequently ordered its committee on finance and public accounts to commence an investigation into the use of Remita (which it erroneously described as an e-collection agent) since the inception of the TSA policy.

Governor Ayodele Fayose of Ekiti State then, also introduced a political angle to the controversy when he alleged that the funds collected through of TSA were used to finance governorship elections and others.

However, the Federal Government of Nigeria through the office of the Minister of Information and Culture, Lai Mohammed debunked the opinions that TSA policy was not intended to loot the Nigeria treasury. The minister in his statement attempted to absolve the administration of President Muhammed Buhari when he claimed that the TSA contract was signed during the administration of President Goodluck Jonathan. The CBN in an attempt to justify their position released a letter to the press titled “Commencement of Federal Government independent revenue collection under the Treasury Single Account (TSA) initiative”. In the letter, the CBN debunked all the allegations made by Melaye as being misleading. At the height of the controversy, the Central Bank of Nigeria (CBN), instructed SystemSpecs to return of all the revenues made so far on the contract, a directive, which SystemSpecs obeyed without delay as a "business decision".

*Operationalization of TSA*
Treasury Single Account (TSA) also has a significant effect. It actually minimize corruption, increases transparency in government activities by allowing efficient control and management of funds in its MDAs.
The Central Bank of Nigeria in conjunction with the Federal Government have enacted policies that guided the effective operation of TSA and the financial affairs of the Nigerian economy. The compliance of the MDAs to key into implementation and operation of TSA for an effective management of government fund is one of the major bottlenecks today.

*Implications of the TSA on Commercial Banks*
One the implications of implementation TSA by federal government is that banks will not have enough money to run their day to day activities properly. Before now, the major source of funds for banks has been the government.
This has a partial effect on banks because they have been surviving with government funds, with the introduction of TSA those money which are been used to trade would been paid into the treasury account.
The era of banks depending on government funds has since passed consequences upon the introduction of treasury single account. Banks have shifted their focus to another source of generating funds in Nigeria now.

This policy of TSA by federal government has led to increase in unemployment rate in Nigeria. Since the banks are not with enough fund like before, this has led many banks to retrench their staff.
The policy has led to a return of the era where females are employed by banks specifically for deposit mobilization and forcibly encouraged to use any means necessary to get funds. This is a bad omen to our systems.

*Custodian of TSA*
The central bank of Nigeria acts as the fiscal agent of the government, the custody of the TSA is with the central bank of Nigeria.
CBN offers the following advantages:
* Provides a safe haven for government cash deposits which minimizes credit risk
exposure.
* Aids the efficient management of government liquidity, and facilitates the CBN’s coordination of its monetary policy operations in managing liquidity for the economy with government’s cash and debt management functions.
*CBN facilitates cost effective banking arrangements and speedy settlements.

*Transaction processes under TSA system*
TSA has facilitated efficient payment mechanisms.
It has ensured that there is no ambiguity regarding the volume or the location of the government funds and makes it possible to monitor payment mechanisms precisely.

The establishment of a TSA is usually combined with elimination of the “float” in the banking and the payment systems and the introduction of transparent fee and penalty structures for payment services. Government has achieved substantial reductions in their real cost of banking services by introducing a TSA.
Payment platform is one of the beauty of TSA operationalization system I can attest to here.

For instance, in a Remita e-payment platform that i am familiar with, it is very secured and segregated the jobs among Initiator, reviewer and approver.
The initiator will prepare all the payments in stipulated spreadsheet format with appropriate commands. After all these are done properly, the initiator will log in into the platform by his username, password and organization I'd. The initiator has to be with his registered mobile line on the remita to receive login code. Without the accurate code, it will deny you the access.
Thereafter, the initiator can initiate the payments process and forward them to reviewer who is next person in line to review what he has initiated. The reviewer will check very well if there is any mistakes or errors from the payments. When the transactions are reviewed accurately, he can push the payments further for approval.
The last person called approver will receive a notification on his dashboard that a payments, payrolls or any transaction have been forwarded for his approval.
He is the final person to remit the payments if he is satisfied. He can decide to pend or reject the payments as it suits him.

The beauty of Remita is that only Accountants are allowed and approved to be enrolled as initiators, reviewers and approvers/Users on TSA.

*Benefits of TSA*
* The TSA enhances the overall
effectiveness of a public financial management system. The establishment of a TSA has specifically promoted transparency and facilitate compliance with sections 80
and 162 of the 1999 Constitution.
* TSA has ameliorated loss or leakages of legitimate income meant for the federation
account.
* Allows complete and timely information on government cash resources.
* The TSA ensures that the Ministry of Finance has full control over budget allocations and strengthens the authority of the budget appropriation.
* When the treasury has full information about cash resources, it can plan and implement budget ex*****on in an efficient, transparent, and reliable manner.
* It enhances efficient cash management. TSA facilitates regular monitoring of government cash balances.
* It helps in reducing the number of bank accounts results in lower administrative cost for the government for maintaining these accounts, including the cost associated with bank reconciliation and reduced banking fees.
* It Improves bank reconciliation, quality of fiscal data and report generation very easy.

*Paradigm shift by State Government into TSA*
Many State Government want to emulate the Federal by introducing TSA in their various States.
The order of the implementation of TSA in State will mark the start of all revenues of Ministries, Departments, and Agencies being withdrawn from whatever account in commercial banks into a unified account maintained by the Central Bank of Nigeria (CBN).
The State Government will have a stronger hold of its finances. Since the government will knows the exact money in the unified account, it would aid planning and ex*****on projects using the money for the betterment of the citizens. Also, whatever money belongs to the State Government is now under its full control and is also assured of being more secured since it is operated by the Central Bank of Nigeria. The Central Bank of Nigeria is one of the most infallible financial institutions in the country. Hence, the government’s money is safe, accessible, and secure. It is now possible to audit all government transactions since it is all in one place. However, whatever it is that has an advantages will also come with its disadvantages.

*These are the likely implications of introduction of TSA in State Government*
TSA would adversely affect liquidity in the banking system at the initial stages. This is because of a surge in money market rates because MDA’s will withdraw their funds from commercial banks. This will in turn affect small business owners who are in need of loans and capital for their business. When MDAs withdraw their funds from commercial banks, banks then place high interest rates on the little left which the public will borrow from. Many experts have postulated that this will lead to increase in the level of unemployment.
When the TSA will be implemented, there would be a difficulty in releasing funds to MDA’s for their operations.
TSA comes with a financial system that has not been used earlier, e-finance and this may affect the effectiveness of the policy among the users.

In conclusion, am an advocate of the TSA policy because it will encourage integrity on how public funds will be managed. This will also make Accountants to occupy their positions as major users of TSA. It will remove the secrecy of government in the management of funds. It will also expose the revenue-generating agencies that have been depriving the State Government of its money through multiple bank accounts. Altogether, there will be overall efficient management of public funds which will lead to a better economy. When you consider the situation of a State where corruption has been a major menace causing havoc to it's economy, we need every and any system that can foster transparency and laccountability. In light of this, bifurcation of Finance and Accounts will expressly come in place in a State where it has not been implemented. Treasury Single Account is just the best way to go.

Thank you.

*Refrence*
Nairametrics
Nairaland.com
Proshareng.com*EFFECT OF TREASURY SINGLE ACCOUNT ON MANAGEMENT OF PUBLIC SECTOR FUND*
*PRESENTED BY: AYORINDE OLUWATUYI ON ACCOUNTING EDUCATION CENTER, NIGERIA*
*DATE: 19/2/2022*

Good evening Professional Colleagues. Thank you to each and every one of you for being here with us today. I am pleased to welcome those of you that have been with us for over a year now as well as those of you who are new to this learning Center.

*Evolution of TSA in Nigeria*
Treasury Single Account (TSA) is a financial policy in use all over the world. It was proposed by the federal government of Nigeria in 2012 under the President Jonathan Administration and was fully implemented by President Mohammed Buhari Administration.
The Federal Government officially commenced the operation of a TSA on Monday, 17th of September 2015. This effectively moved about #1.2 trillion from Nigerian Banks to the Central Bank of Nigeria.

For most Nigerians, this decision is a bold attempt at stifling corruption and ensuring government revenue is effectively mobilised and monitored.
TSA is conceptualized to consolidate all inflows from all agencies of government into a single account at the Central Bank of Nigeria.

*Initial reactions to the introduction of Treasury Single Account*
The operation of the Treasury Single Account in Nigeria has not been without controversies and reactions from Nigeria citizens. On Tuesday, 10 November 2015, Senator Dino Melaye, representing Kogi West, raised a motion that the operation of the treasury single account (TSA) be investigated for possible corruption. He claimed that "the appointment of Remita, an e-collection agent, is a gross violation of section 162 (1) of the Nigerian Constitution and the banks and other Financial Institutions Act." He claimed the constitution only recognised a banking institution to be the collector of government funds, that Remita was not a bank. The provision of the Constitution cited by Melaye states, “the federation shall maintain a special account to be called the federation account into which all revenues collected by the government of the federation except the proceeds from the personal income tax of the personnel of the Armed Forces of the Federation, the Nigeria Police Force, the ministry or department of government charged with foreign affairs and the residents of the FCT, Abuja.” According to Senator Melaye, the total inflow of 1% commission charged and received by SystemSpecs for all revenue collected on behalf of the government from the various ministries, departments and agencies to be 25 billion Naira as of November, 2015 was fraud and must be returned to the account of the Central Bank of Nigeria.
The Senate consequently ordered its committee on finance and public accounts to commence an investigation into the use of Remita (which it erroneously described as an e-collection agent) since the inception of the TSA policy.

Governor Ayodele Fayose of Ekiti State then, also introduced a political angle to the controversy when he alleged that the funds collected through of TSA were used to finance governorship elections and others.

However, the Federal Government of Nigeria through the office of the Minister of Information and Culture, Lai Mohammed debunked the opinions that TSA policy was not intended to loot the Nigeria treasury. The minister in his statement attempted to absolve the administration of President Muhammed Buhari when he claimed that the TSA contract was signed during the administration of President Goodluck Jonathan. The CBN in an attempt to justify their position released a letter to the press titled “Commencement of Federal Government independent revenue collection under the Treasury Single Account (TSA) initiative”. In the letter, the CBN debunked all the allegations made by Melaye as being misleading. At the height of the controversy, the Central Bank of Nigeria (CBN), instructed SystemSpecs to return of all the revenues made so far on the contract, a directive, which SystemSpecs obeyed without delay as a "business decision".

*Operationalization of TSA*
Treasury Single Account (TSA) also has a significant effect. It actually minimize corruption, increases transparency in government activities by allowing efficient control and management of funds in its MDAs.
The Central Bank of Nigeria in conjunction with the Federal Government have enacted policies that guided the effective operation of TSA and the financial affairs of the Nigerian economy. The compliance of the MDAs to key into implementation and operation of TSA for an effective management of government fund is one of the major bottlenecks today.

*Implications of the TSA on Commercial Banks*
One the implications of implementation TSA by federal government is that banks will not have enough money to run their day to day activities properly. Before now, the major source of funds for banks has been the government.
This has a partial effect on banks because they have been surviving with government funds, with the introduction of TSA those money which are been used to trade would been paid into the treasury account.
The era of banks depending on government funds has since passed consequences upon the introduction of treasury single account. Banks have shifted their focus to another source of generating funds in Nigeria now.

This policy of TSA by federal government has led to increase in unemployment rate in Nigeria. Since the banks are not with enough fund like before, this has led many banks to retrench their staff.
The policy has led to a return of the era where females are employed by banks specifically for deposit mobilization and forcibly encouraged to use any means necessary to get funds. This is a bad omen to our systems.

*Custodian of TSA*
The central bank of Nigeria acts as the fiscal agent of the government, the custody of the TSA is with the central bank of Nigeria.
CBN offers the following advantages:
* Provides a safe haven for government cash deposits which minimizes credit risk
exposure.
* Aids the efficient management of government liquidity, and facilitates the CBN’s coordination of its monetary policy operations in managing liquidity for the economy with government’s cash and debt management functions.
*CBN facilitates cost effective banking arrangements and speedy settlements.

*Transaction processes under TSA system*
TSA has facilitated efficient payment mechanisms.
It has ensured that there is no ambiguity regarding the volume or the location of the government funds and makes it possible to monitor payment mechanisms precisely.

The establishment of a TSA is usually combined with elimination of the “float” in the banking and the payment systems and the introduction of transparent fee and penalty structures for payment services. Government has achieved substantial reductions in their real cost of banking services by introducing a TSA.
Payment platform is one of the beauty of TSA operationalization system I can attest to here.

For instance, in a Remita e-payment platform that i am familiar with, it is very secured and segregated the jobs among Initiator, reviewer and approver.
The initiator will prepare all the payments in stipulated spreadsheet format with appropriate commands. After all these are done properly, the initiator will log in into the platform by his username, password and organization I'd. The initiator has to be with his registered mobile line on the remita to receive login code. Without the accurate code, it will deny you the access.
Thereafter, the initiator can initiate the payments process and forward them to reviewer who is next person in line to review what he has initiated. The reviewer will check very well if there is any mistakes or errors from the payments. When the transactions are reviewed accurately, he can push the payments further for approval.
The last person called approver will receive a notification on his dashboard that a payments, payrolls or any transaction have been forwarded for his approval.
He is the final person to remit the payments if he is satisfied. He can decide to pend or reject the payments as it suits him.

The beauty of Remita is that only Accountants are allowed and approved to be enrolled as initiators, reviewers and approvers/Users on TSA.

*Benefits of TSA*
* The TSA enhances the overall
effectiveness of a public financial management system. The establishment of a TSA has specifically promoted transparency and facilitate compliance with sections 80
and 162 of the 1999 Constitution.
* TSA has ameliorated loss or leakages of legitimate income meant for the federation
account.
* Allows complete and timely information on government cash resources.
* The TSA ensures that the Ministry of Finance has full control over budget allocations and strengthens the authority of the budget appropriation.
* When the treasury has full information about cash resources, it can plan and implement budget ex*****on in an efficient, transparent, and reliable manner.
* It enhances efficient cash management. TSA facilitates regular monitoring of government cash balances.
* It helps in reducing the number of bank accounts results in lower administrative cost for the government for maintaining these accounts, including the cost associated with bank reconciliation and reduced banking fees.
* It Improves bank reconciliation, quality of fiscal data and report generation very easy.

*Paradigm shift by State Government into TSA*
Many State Government want to emulate the Federal by introducing TSA in their various States.
The order of the implementation of TSA in State will mark the start of all revenues of Ministries, Departments, and Agencies being withdrawn from whatever account in commercial banks into a unified account maintained by the Central Bank of Nigeria (CBN).
The State Government will have a stronger hold of its finances. Since the government will knows the exact money in the unified account, it would aid planning and ex*****on projects using the money for the betterment of the citizens. Also, whatever money belongs to the State Government is now under its full control and is also assured of being more secured since it is operated by the Central Bank of Nigeria. The Central Bank of Nigeria is one of the most infallible financial institutions in the country. Hence, the government’s money is safe, accessible, and secure. It is now possible to audit all government transactions since it is all in one place. However, whatever it is that has an advantages will also come with its disadvantages.

*These are the likely implications of introduction of TSA in State Government*
TSA would adversely affect liquidity in the banking system at the initial stages. This is because of a surge in money market rates because MDA’s will withdraw their funds from commercial banks. This will in turn affect small business owners who are in need of loans and capital for their business. When MDAs withdraw their funds from commercial banks, banks then place high interest rates on the little left which the public will borrow from. Many experts have postulated that this will lead to increase in the level of unemployment.
When the TSA will be implemented, there would be a difficulty in releasing funds to MDA’s for their operations.
TSA comes with a financial system that has not been used earlier, e-finance and this may affect the effectiveness of the policy among the users.

In conclusion, am an advocate of the TSA policy because it will encourage integrity on how public funds will be managed. This will also make Accountants to occupy their positions as major users of TSA. It will remove the secrecy of government in the management of funds. It will also expose the revenue-generating agencies that have been depriving the State Government of its money through multiple bank accounts. Altogether, there will be overall efficient management of public funds which will lead to a better economy. When you consider the situation of a State where corruption has been a major menace causing havoc to it's economy, we need every and any system that can foster transparency and laccountability. In light of this, bifurcation of Finance and Accounts will expressly come in place in a State where it has not been implemented. Treasury Single Account is just the best way to go.

Thank you.

*References*
Nairametrics
Nairaland.com
Proshareng.com

Distinguished Members.
We will have an interactive session on Saturday from 12pm till dawn on this topic:
Can and how Government Regulations help businesses to grow in Nigeria?

Let us prepare to make our contributions.
See you then.

Distinguished Members.
We will have an interactive session on Saturday from 12pm till dawn on this topic:
Can Government Regulations help businesses to grow in Nigeria?

Let us prepare to make our contributions.
See you then.

IMPACT OF ANNUAL AUDIT IN PUBLIC SECTOR GOVERNANCE.
PREPARED AND DELIVERED BY:
OLUWATUYI AYORINDE ON ACCOUNTING EDUCATION CENTER, NIGERIA WEEKLY LECTURE.
DATE: 29/1/2022
Key points: Annual Audit, Public Sector and Governance.

I welcome you to our weekly lecture. As our normal routine, we will look critically on the impact of annual audit in public sector governance.

What Is Annual Audit?
Annual Audit is also known as Periodical Audit or Final Audit or Complete Audit. This type of Audit is usually done at the end of the year after the preparation of the Final Accounts. The Auditor does the audit work till the time all the account books and statements prepared are verified and examined by the audit team. This type of Audit is done only once a year. Extensive examination of Account Books are normally carried out under such audit.

We have discussed public sector in our previous lectures. There is need to flog it anymore.
What is Governance?
Governance is the combination of processes and structures implemented by
the government to inform, direct, manage, and monitor the MDA’s activities toward the
achievement of her objectives.
In the public sector, governance relates to the means by
which goals are established and accomplished. It also includes activities that ensure a public sector entity’s credibility, budgetary compliance, establish equitable provision of services and ensure appropriate behavior of government officials. It also aid in reducing the risk of public corruption and other sharp practices.

On the other hand, Public Sector annual auditing is a cornerstone of good public sector governance. This enables in providing unbiased, assessments of whether public resources are managed responsibly and effectively to achieve intended results.
Auditors play a very crucial role in helping public sector to achieve accountability, integrity, improve operations and instill confidence among citizens. The public sector auditors support the governance responsibilities of oversight, insight, and foresight.
* Oversight addresses whether public sector entities are doing what they are supposed to do and deter public corruption.
* Insight assists decisions makers by providing an independent assessment of public sector programmes, policies, operations, and results.
* Foresight identifies trends and emerging challenges.
Auditors make use of relevant tools such as financial audits, performance audits, investigations, and advisory services to fulfill each of these roles as prescribed.

The accounting year of every MDA runs from 1st January to 31st December of every year. The Accountants by now should be rounding up with their annual financial statements and positions of their MDAs. Auditors on their sides will be warming up to carry out their annual audit works from all the relevant information supplied by the Accounts Department.

The annual audit is a verification process of MDA's financial systems and statements.
The auditor will look at the accuracy of the figures, internal control mechanisms, processes and let you know if any other internal control steps should be taken to help protect your MDA against frauds and errors. It is a normal routine to strengthen the governance.
Though, some Accountants that are not up and doing will not like a time like this. Accountants need to put all their books of account in order by now. It entails a good and competent Accountant to show how accurate and effective he/she is in the course of the year. The annual audit is to Xray the financial and other activities of your MDA.
Preparation for the annual audit will not only assist the auditors, but it will also ensure that Accountants have a better understanding of the job and increase value to your MDA. By working together, both parties are more likely to discover ways to improve efficiency and minimize errors.
Although the audit may at times be challenging and intrusive, but your cooperation in supplying the needed information will contribute greatly to the speed with which auditors can do their work.

What preparations should be made ahead of time?
The Accounting Officers and Director of Accounts should discuss with the Audit Team Leader to establish a high priority for agreed-upon items, while ensuring the time frame is fair to them.
Then, those expressed needs, as well as the audit procedures that will be performed should be discussed with the management. Timing of the engagement is important. Determine contact Officers for specific areas under audit by avoiding any potential scheduling conflicts, such as vacations and leave among account, internal audit and store staff that will be needed.
Obviously, requests should be made for templates, copies of prior working papers and clarification so that you can prepare information in a format acceptable to the auditor.
Deadlines should be prepared to discuss significant working processes. With all these, I believe you will have a robust and successful working relationship.

What information will an auditor ask for?
Since auditors express an opinion on the broad financial statements, most of the detailed schedules they request are merely items your MDA should have as part of its normal accounting procedures.
The auditor systematically, objectively obtains ; evaluates evidence about the financial statements and other books of account in your MDA.
The following books may be required:
* Cash books.
* General ledgers
* Trail balances
* Financial Statements and Positions.
* DVEA.
* Bank Reconciliation Statements
* Bank Statements.
* Payment Vouchers.
* Contract registers.
* Advance ledger
* Cheques register
* Bank confirmation schedules.
* Bank transfer instructions
* Annual appropriation.
* Salaries registers, variations and personal emoluments card.
* Asset registers.
* Store legders and other relevant books in the store.
* Supporting documents.
* Annual activities of the MDA.
* Policy files.
* Budget evaluation appraisals etc.
When all these books and documents are well prepared and documented, there should be no issues.

How should you communicate with the auditor during the audit?
Communication is very vital during the audit exercise. Be opened and candid. You may be asked some questionable accounting practices or pressures may set in, fraud risk factors and known deficiencies in your accounting systems. I will strongly advise that you should be calmed and ready to discuss with the auditor about difficult areas that you have encountered.
Ask why a particular information, documents and schedules are requested if you don’t know.
You may have a better source for those documents and information; it may already exist in an alternative format or you may learn a better way to organize your routine tasks as a result of this. Auditor is not there to witch hunt but to form his/her opinions.

In conclusion, auditor tests all the books to determine whether the statements are materially correct. The auditor also looks at the systems and procedures used to generate the financial information to determine if they are free from obvious design deficiencies. After sufficient evidence has been gathered that your financial statements have been fairly stated, the auditor gives an opinion on those statements.
Ideally, auditors will provide either unqualified (clean) opinion or qualified (unclean) on the MDA’s financial statements. An unqualified opinion will contain language such as “the financial statements present fairly in all material respects” and “in conformity with accounting principles generally accepted with the Accounting Standards and law of the State or Federal as the case may be. This is what we should all crave for. Qualified opinion will attract audit queries and may lead your MDA to Public Account Committee in the House of Assembly. We should avoid this.

The accounts and internal audit staff should work together to ensure that financial statements are usable, accurate and timely. Meeting these goals gives users greater confidence in the statements and helps you recognize opportunities for improvement. Stay in contact with the auditor throughout the year about matters such regulations and plans will aid you to accomplish your objectives.
Let us bear in our mind that annual audit is a special period to test your competency, abilities, accuracy, integrity, probity and accountabilities.

Thank you.

References:
CPA & Advisor (GRF)
Masterpedia.