Public sector performance auditing: Emergence, purpose and meaning

Accounting, Auditing & Accountability Journal, 2018

Purpose In the context of global new public management reform trends and the associated phenomenon of performance auditing (PA), the purpose of this paper is to explore the rise of performance audit in Australia and examines its focus across audit jurisdictions and the role key stakeholders play in driving its practice. Design/methodology/approach The study adopts a multi-jurisdictional analysis of PA in Australia to explore its scale and focus, drawing on the theoretical tools of Goffman. Documentary analysis and interview methods are employed. Findings Performance audit growth has continued but not always consistently over time and across audit jurisdictions. Despite auditor discourse concerning backstage performance audit intentions being strongly focussed on evaluating programme outcomes, published front stage reports retain a strong control focus. While this appears to reflect Auditors-General (AGs) reluctance to critique government policy, nonetheless there are signs of direct...

SSRN Electronic Journal

This paper explores the value of financial statement auditing in the public sector. The study applies theory about auditing from the private sector as well as the public sector to explore ways in which public sector auditing can be expected to be valuable. It shows that there are a number of complementary explanations that can be applied to examine the value of public audit, including agency, signaling, insurance, management control, governance and confirmation explanations. The evidence from research and history is generally consistent with the agency and management control explanations. There is some support for the signaling and insurance explanations, while research evidence suggests that governance has differing impact in the public sector compared to the private. The confirmation hypothesis is also potentially relevant. Reviewing the history of the development of public sector auditing functions shows that at least some developments were consistent with explanations such as agency theory and management control. Auditing in the public sector is an area where more research is valuable. The paper concludes with a discussion of issues for further investigation.

Abacus, 1999

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.

Auditing Practices in Local Governments: An International Comparison

This chapter summarises the analysis of the preceding chapters. Whilst different countries use different models for their audit, some continuities do emerge. The audit explosion has led to the advance of both financial and performance audit. Inspection however remains an infrequent feature of the audit landscape. Many countries have a localised system of local audit in which the role and influence of audit is variable. Furthermore, the audit of local government lacks a clear democratic role at the moment.

International Journal on Governmental Financial …, 2009

Public Money & Management, 2014

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.

The purpose of this article is to explore the impact of performance audit on public policy. The article investigates performance audit reports and the debates they trigger in the public realm. The case of Norway is analysed using mixed methods including a questionnaire, mapping and categorizing of reports, document studies and interviews. The results show that the Norwegian Supreme Audit Institution (SAI) is primarily preoccupied with managerial issues. It is nevertheless open to interpretation whether the preoccupation with managerial issues primarily implies an efficiency and effectiveness focus or an assessment of compliance to managerial standards. Most reports receive moderate attention from the media and the parliamentary control committee. Therefore direct dialogue with the ministries appears to be important to ensure that performance audits are influential. In the public debate the SAI, the ministries and the members of parliament base their argumentation on different institutional logics. These logics can lead to different interpretations of the control system, laws and regulations and hamper the SAI's influence.

Evaluation, 2017

The last 30 years of the New Public Management ‘regime’ in many western countries have resulted in increased use of audit and other control mechanisms. These mechanisms are supposed to contribute both to accountability and improvement. In this article, theories of evaluation and organizational learning are used to understand how the dynamics of control affect change processes. We analyse responses to performance audit reports carried out by the country’s Supreme Audit Institution – an important control institution in Norway, as in most other countries. The findings are primarily based on survey data from 353 Norwegian civil servants. The auditees reported that they were mostly positive towards the reports and used them to make improvements in their control systems; however, civil servants also perceived the reports to be unbalanced. The results indicate that the performance audits’ contributions to improvements are less clear than they appear to be at first glance, and that personal...