When carrying out regularity audits of contracting authorities, audit entities may need to check that PPP commitments are appropriately reflected in accounts, and that PPP processes have been followed.
For example, the South Africa PPP Manual Module 7: Auditing PPPs [#219] describes how the scope of the Auditor General's annual regularity audits applies to PPPs. This includes:
• Checking compliance-the Auditor General is required to check that the requirements of the PPP Regulations have been met, for example that the appropriate treasury approvals were sought and granted
• Checking financial reporting-the Auditor General must also check the financial implication of the PPP for the institution. This includes checking that information on PPPs in 'notes to the financial accounts' is correct, and that commitments to PPPs have been accounted for appropriately. For more on accounting requirements for PPPs see Section 2.4.4: Fiscal Accounting and Reporting for PPPs.
According to the guidelines, the Auditor General in South Africa may also carry out forensic audits (should the regular audits raise any suspicion of fraud or corruption), or performance audits, as described further in the following section.