The issue of ghost names on the Government of Ghana payroll managed by the Controller and Accountant General's Department (CAGD) with its attendant payment of unearned salaries has engaged national discourse for years. After having audited Plakufeme District Hospital where you are the Health Service Administrator in charge, the Auditors of the Ghana Audit Service observed that one hospital staff Kukuwa who is a nurse was paid unearned salaries to the tune of GHS7, 850.00. The Auditors based their argument on the gross 3 months salaries paid to Kukuwa which was inclusive of the total income tax of GHC1,500.00 which CAGD had already deducted.

a. Explain the steps or procedures the hospital and the auditors will go through from the beginning till the audit activity ends.

b. As the Administrator of the Hospital, give a response to the audit observation indicating your agreement or disagreement with the auditors. Cite relevant laws or documents to support your view.