Abstract
The Supreme Audit Institutions (SAI) are required to act as a corner stone in the public financial management system to prevent and discourage corruption by enhancing transparency, accountability and good governance. However, the executives and legislative arms of government in most of the African countries have reportedly overpowered the independence of SAI due to certain factors. Therefore, this study examines the factors hindering the independence of SAIs towards good governance in the Nigerian public sector. The primary data were collected from senior and management officers in the office of the Auditor General for the Federation and Public Account Committees of the National Assembly through self-administered questionnaire. One hundred and fifty (150) questionnaires were distributed to the respondents. The statistical analysis tool employed in this study is Structural Equation Modeling. The two hypotheses developed for this study were tested through regression analysis which indicated that both negatively affect good governance in the Nigerian public sector. The study revealed that the independence of SAIs in Nigeria was impaired in two critical areas; deliberate under-funding of SAIs and the quality of external auditor hired to perform the task. The study recommends that the constitutional provision that impairs the independence of SAIs should be repealed to ensure their financial autonomy. Finally, the study suggested that the Nigerian government should allow the SAI to independently determine the appointment of experienced external auditors and their fees.
Highlights
The increasing public demand for accountability and transparency in the governance and management of public sector in several countries across the globe call for serious concern among academics and practitioners
There is a significant relationship between quality of external auditor hired by Supreme Audit Institutions (SAI) and good governance in Nigeria
The study examines the factors hindering the independence of supreme audit institution towards good governance in Nigeria
Summary
The increasing public demand for accountability and transparency in the governance and management of public sector in several countries across the globe call for serious concern among academics and practitioners. Lack of accountability in government provides opportunities for public fund wastage and corruption with attendant negative consequences to the Universal Journal of Accounting and Finance 9(4): 712-721, 2021 economy of the country [5]. The Supreme Audit Institution (SAIs) which is regarded as Auditor General in Nigeria is expected to serve as an authority that saddles the responsibility of providing unbiased and objective assessment of whether public fund is effectively managed to achieve intended outcome. Despite the engagement of SAIs to assess and report the financial operations of all these agencies, corruption and other irregularities are still endemic This continue to plague the country’s economy; coupled with weak public health system, insecurity, poverty, poor infrastructure among other several challenges [53, 54]. This includes insufficient funding, lack of knowledge and experience, supportive environment, adherence to international standards, appointment and promotion of SAI heads, among others [9,10,11]
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