Why would a city pay an auditor to find their mistakes and report them?

You will study the difficult task of forecasting and reporting. Predicting future needs is important in managing a budget and making sure expenditures do not exceed the revenues.

In the current economic situation, discuss the following:

  1. Is borrowing against future taxes a productive strategy? Why or why not? Provide concerns from your readings and your personal views.
  2. How critical is the accounting system to hold public officials answerable for the appropriated funds in their trust?
  3. Why would a city pay an auditor to find their mistakes and report them?
  4. If the city was paying the auditor, would that relationship result in some lack of independence on the part of the auditor?

Explain your answer with examples. Provide comments on the purpose and use of auditing and your personal opinions on this topic.

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