Abstract
The Auditor-General of South Africa (AGSA) issues audit report for both PFMA and MFMA institutions on yearly basis. Amongst Other highlight of these reports, since the early 2010’s, has been relentless poor quality of financial statements prepared by government institutions. Pointed out as the main factor to unchanging quality of financial statements is the disregard of AGSA recommendations by government institutions. In 2019 MI audits came into effect which aimed to address this lack of accountability and improve the quality of financial reporting. This study uses three indicators to assess if there has been changes (improvement) in the quality of government institutions’ financial statements since the implementation of MI audits. It is found that two years post the implementation of MI audits, there has not been a material improvement in the quality of financial statements of government institutions that were subjected to phase one of MI audits.