Qualitative analysis of the effectiveness of audit committees and internal audit functions in the public sector: the case of public establishments in Morocco

Abstract

This article examines corporate governance and the performance of the audit committee, as well as the functions of internal audit in the public sector of an emerging economy such as Morocco. Both of these functions are crucial for corporate governance, ensuring optimal service delivery by local authorities, particularly public institutions. The study, based on stakeholder theory, qualitatively analyzes corporate governance and the effectiveness of audit committees and internal audit units in the Moroccan public sector. The results suggest good corporate governance with the presence of audit committees and internal audit functions in the public sector. However, the inefficiency of audit committees and internal audit units is highlighted, attributed to the lack of guidance, non-implementation of recommendations, and insufficient resources in the Moroccan public sector. To enhance performance, it is recommended that leaders take into account the findings of audit committees and internal audit units, endorsing and incorporating their conclusions into action plans implemented by management. Audit committees should strengthen their oversight of internal audit functions to ensure their effectiveness. The presence of effective audit committees and internal audit units in the public sector reflects competent and efficient utilization of resources for the benefit of all stakeholders.