The Quest for Audit Quality in the Public Sector

SSRN Electronic Journal, 2016

Supreme Audit Institutions (SAIs) have an important role in ensuring public sector accountability; their main activities being managing the audit of public sector entities' financial statements and assessing probity/compliance, providing advice to parliamentary committees, and undertaking performance audits. Standards issued by the International Organisation of SAIs encourage SAIs to recognise the value they deliver through their activities and to demonstrate that to citizens, Parliament and other stakeholders. The recognition of the need to be democratically accountable for efficiency and effectiveness is one aspect of public value, which is also concerned with the just use of authority (Moore, 2013). The purpose of this paper is to develop the components of a SAI's public value and, through a comparative international study, to analyse how SAIs report on the public value they deliver. Analysing reporting against the model developed in this paper indicates that SAIs' reporting prioritises critiques to increase public sector efficiency and effectiveness, rather than government policy. In addition, it finds SAIs generally fail to discuss any negative consequences of their work. SAIs are encouraged to develop new ways to demonstrate their ongoing relevance.

2016

This article surveys the evolution of multi-level audit governance in the European Union. It traces sixty-five years of financial control, from the work of a single auditor at the European Coal and Steel Community (1952) to the creation of the Audit Board of the European Communities (1959-1977), and from the establishment of an independent European Court of Auditors (1977) to audit the newly established EU budget, to the setting up of a European Anti-Fraud Office (1999). The article addresses the challenges of securing effective cooperation between audit bodies at the national and supranational level. It also analyses how the Community’s external auditor started to ‘hold to account’ EU policies and traces the tensions and inter-institutional conflict that arose between the Court and the Commission and Council. Using an analytical approach set out by Tommel (2016) that recognises different ‘modes of governance’, it identifies the main phases and turning points that have shaped audit ...

International Journal on Governmental Financial …, 2009

Accounting, Economics and Law: A Convivium, 2016

Table of contents 1 Harmonization and diversity in public sector accounting 2 Can European institutions take advantage of academic knowledge? Reference 1 Harmonization and diversity in public sector accounting Marion Boisseau conducted a thorough review of our co-edited book. In her review she highlights the main points of the research that was conducted for 14 European countries investigating accounting and auditing systems and discussing the readiness for change towards a set of international accounting standards. She comments that the book provides an introductory chapter about featuring the current debate on harmonization and the possible adoption of EPSAS and a final chapter where the main trends in public sector accounting

2005

The purpose of this paper is to evaluate the extant Anglo-American literature on'performance auditing for the public sector', in order to identify the socio-economic and political themes that influenced the emergence of public sector performance auditing. The paper also seeks to develop an understanding of the role and practice of performance auditing in the public sector.

2016

There is currently no standard or requiremen t guiding the approaches taken by the European Union (EU) Public Sector internal audit. Therefore, the approaches taken by each country, although having some similarities are different. The aim of this research is to compare the Latvian state administration internal audit approach with Latvia and Poland and evaluate each country's internal audit approach according to internal audit maturity determinants. The latter have been determined from literature, the Compendium report. Thereby, shedding light on the Latvian's internal audit approach maturity. The methodology includes a comparative study of 5 European countries' public sector internal audit methodologies, by carrying out a documents analysis and evaluation of the existing normative acts, Authors recommend introducing a common internal audit procedures manual, standards and guidelines for the public sectors in the EU Member States. They believe that this will improve internal controls and internal audit data analysis around Europe. The main results of the study will highlight the maturity of each of these countries' internal audit approaches and their pros and cons. It will also highlight where improvements might be required or where changes are necessary.

Performance audit is widely used in public administration, but, at present, little empirical evidence exists on its usefulness and contribution to accountability. Based on survey data from 353 civil servants in Norway, this article analyzes the auditees' perceptions of the audit. Performance audit was seen as useful by a majority of the auditees. If auditees agreed to audit criteria and assessments, were allowed to influence the process, had favourable opinions of the reports, and believed that the State Audit Institution contributed to accountability and improvement, then they regarded it as useful. Reports used for accountability purposes were not perceived as less useful. The auditees' administrative level, the use of the report to further interests, and attention from politicians, the media, and the Parliament impacted on the accountability dimension. These results indicate that performance audit can influence civil servants, but the influence is contingent on how the audited civil servants perceive the performance audit.

Emerald Publishing Limited eBooks, 2022

Recent research has shown that there is a growing gap between academia and practice in public sector accounting, auditing and accountability. This is a particularly important issue in the context of public services and policies, where a number of emerging issues and trends, such as fiscal sustainability, global climate change, demographic changes, equity and inclusive growth, government transparency, citizen participation and engagement, political polarisation and fragmentation, the growth of false information in social media, and new forms of public-private-non-profit partnership, as well as technological advancements, such as big data, block-chain, and digital transformation, bring about new challenges and require innovative, timely, and effective solutions. To strengthen the debate between academia and practice, Emerald Studies in Public Service Accounting and Accountability aims to provide a forum where academics, practitioners, and policy makers can interact and promote new ideas related to hot topics and emerging trends. Through innovative use of different formats, such as short-form books, in-depth case studies, and debates, this series will foster a dialogue between those in academia and those in practice, both leading to the advancement of research in this field and increasing its impact.

Journal of Public Budgeting, Accounting & Financial Management, 2020

The article presents the viewpoints of two researchers, supported by research which is cited in the paper. Findings: Public sector auditing research has grown considerably. We expect further growth. We debunk some myths about public sector auditing. We suggest areas where there are opportunities for research. In particular, researchers can examine a broader range of jurisdictions, investigate differences among countries, and develop suggestions about what works best. Research limitations/implications: The paper presents the views of the authors. Practical implications: There are opportunities for further research across different jurisdictions. Originality/value: The paper makes a contribution by outlining research opportunities.

Public Policy & Administration, 2022

This paper develops and applies the concept of accountability styles for analyzing and comparing accountability practices in different countries. This is relevant as there is considerable scholarship on public sector accountability but only very few comparative studies. Extant studies have shown that national styles of accountability are both marked by convergence as well as the resilience of national differences. The concept of ac- countability style is adopted to describe and interpret how and why accountability practices differ between administrative systems. It does so by analyzing practices of accountability of public sector agencies in four European democracies with different state traditions: the Netherlands, Norway, Switzerland and the UK. These countries vary with regards to state strength (interventionist propensity) and administrative concentration (high or low centralization). The analysis focuses on the accountability of arms’ length agencies which lends itself for comparisons across counties. The paper shows that the national political-administrative context crucially shapes practices of accountability and accountability regimes of agencies. The Norwegian accountability style is characterized as ‘centralized and convenient’. The UK-style is equally centralized yet not so convenient as it incurs high accountability-process costs on agencies. Switzerland is marked by limited hierarchical accountability. And the Dutch accountability style is comparatively ‘broad and informal’. State strength and administrative concentration explain some of the variance while historical legacies explain additional national variations.

Administration & Society, 2016

Performance audits allow audit institutions to contribute to the improvement of the economy, efficiency, and/or effectiveness of public sector entities through the recommendations of their reports. To assess the impact of the performance audits carried out by EU Supreme and Regional Audit Institutions, this article analyzes whether these recommendations are implemented in practice or not. The results show that there are two main ways in which the recommendations included in the performance audit reports produce an impact: the Anglo-American way, based on auditee actions and follow-up processes, and the Germanic way, based on parliamentary action.

2010

In an attempt to improve the quality of political and democratic processes, governmental organisations could decide to introduce performance auditing. However, earlier studies suggest that performance auditing can actually damage the quality of these processes, especially when it leads to information about the inputs, outputs and efficiency of programmes or activities. This raises the question of whether performance audits that lead to other types of information have similar effects. This paper analyses the effects of two local government audit committees in the Netherlands, both of which conduct performance audits that produce a broad set of information. It concludes that the lack of success of performance auditing, in terms of its contribution to the quality of political and democratic processes, cannot fully be explained by the type of information that is produced. In order to strengthen their role, audit bodies must find a balance between maintaining an independent position and responding to the expectations and requirements of their key stakeholders, which include the elected body, the Executive and the official organisation.

Management & Accounting Review, 2017

This study aimed to identify the common issues frequently raised in the Auditor General’s reports and to investigate whether the levels of inefficiencies quoted in the Auditor General’s reports keep increasing or decreasing during the period of investigation. This study was based on the secondary data comprising the Auditor’s General report and was supported with feedback reports received from the ministry, department, state, and other government agencies. This study found that not in compliance with procedures recorded the highest issues highlighted in the Auditor General’s report, followed by the procurement and asset management. In addition, all the issues showed a decreasing trend for both federal government and statutory bodies, indicating an improvement in the efficiencies of management and higher accountability that have been demonstrated by civil servants.

2015

Accounting History, 2017

Mr. Roel Jannsen, an economics and financial journalist, has written an interesting book on Supreme Audit Institutions (SAIs). In essence, the book is a compilation of interviews of eight current and former heads of audit institutions from across the world. The book is unique in that it brings us the opportunity to 'travel' around the world, visiting the SAIs of different countries. The lessons from the personal experiences of these SAIs' leaders are, indeed, what makes the book particularly interesting. The book is well written, easy to read and fairly short, consisting of 103 pages. Excluding the Introduction, the book contains 8 sections pertaining to the SAIs of Tunisia, Austria, South Africa, the Philippines, Estonia, the United States, Uganda and Iraq. Besides the opinions of the heads of the SAIs, in each section we find a summary of the key statistics and some additional information about each country (e.g., population, GDP) and a brief description of the history of the institution. It also contains some biographical details (and a picture) of the SAIs' leaders. Information about how the local SAI interacts with the International Organization of Supreme Audit Institutions (INTOSAI) is included as well. Given the topic, the approach and the structure of the book, it will be of interest to the general public. In the following, I will briefly discuss the salient points of the different sections and conclude with some thoughts. The prologue 'The pillars of integrity' sets the scene. The history of the Netherlands Court of Audit is used to introduce the key theme of the book: the role of SAIs in today's society. The prologue explains the vital role of SAIs in the accountability of governments, in the efforts to enhance governance in government institutions and in the disclosure of corruption cases. It also introduces three underlying topics discussed throughout the book: the evolving nature of SAIs and their different roles depending on the jurisdiction; the importance of individual leadership; and the current challenges of SAIs. The prologue closes with a commentary about INTOSAI's assistance to national SAIs. The section 'La Cour Est Dans Mon Coeur' focuses on the Tunisian Court of Auditors and its president Faiza Kei. The biographical information about the president underscores her involvement in women's rights movements. Discrimination of women in decision-making was one of the issues she paid attention to during her time in office. In Kei's view, the main duties of the Tunisian SAI are to: act as a watchdog of the political process; perform performance audits; and to fight against corruption. The section includes a brief discussion of the profound effect that the changes in government caused by the Jasmine Revolution in 2011 had on the SAI's role and activities. The section 'Accountability, Transparency and Independence' discusses the Austrian Rechnungshof and the role of Josef Moser, its current president. The recent financial crisis in 695106A CH0010.1177/1032373217695106Book reviewBook review book-review2017