Public Audit Act, 2004 (Act No. 25 of 2004)

Memorandum of Agreement (2020)

Purchase

Description:

This indicator determines whether the auditee—

•	experiences cash shortages; and/ or

•	relies on bank overdrafts to fund its operations.

Calculation

This is indicated in the auditee's balance sheet.

Score	Rating
Score 3	auditee relies on overdraft to fund its operations
Score 1	auditee uses its own cash resources to fund operations