This article analyses the General Report on local government audit outcomes of the Eastern Cape Province 2013/2014 and reflects on the financial control and ethics as critical measures for enhancing sound municipal financial management, accountability and clean audits. With reports and details of material misstatements, unauthorised expenditure, fruitless, wasteful and irregular expenditure, including the material underspending of budgets and unspent government grants by municipalities and municipal entities, actions to seriously tighten financial control and monitor ethical behaviour and accountability cannot be overemphasised. Section 195(1)(f) of the Constitution of the Republic of South Africa (1996), as well as Chapter 6 of the Public Administration Act (No. 11 of 2014), provide for control, ethics and accountability in the management of public finances. Sections 165 and 166 of the Municipal Finance Management Act (No. 56 of 200