Application of Critical Systems Thinking to Performance Auditing Practice at the Indonesian Supreme Audit Institution: Issues and Challenges

Abstract

The paper explores the reframing of performance auditing practice based on a critical systemic approach using critical systems heuristics or ‘if‐then’ thinking. The critical systems heuristics approach is applied to enhance public accountability in Indonesia. The paper aims to apply critical systemic thinking to the following area of concern: How can accountability be enhanced? A case is made for developing and extending current performance auditing processes to take into account well‐being stocks for current and future generations in Indonesia. The aim is to discuss the current challenges facing auditing and to suggest alternatives in order to make some policy suggestions as to how to reframe the performance auditing practice with regard to the following: (i) to what extent the environmental aspect on performance auditing is perceived by the auditors and (ii) how the current practice of performance auditing could be improved to promote better accountability? Copyright © 2014 John Wiley & Sons, Ltd.