The changing roles of internal auditors in the Ukrainian central government

Tamara Volodina,Giuseppe Grossi,Veronika Vakulenko

doi:10.1108/jaoc-04-2021-0057

Tamara Volodina, Giuseppe Grossi + Show 1 more

Open Access

https://doi.org/10.1108/jaoc-04-2021-0057

Copy DOI

Abstract

PurposeThe purpose of this paper is to explore how internal auditors’ (IAs) roles have changed because of the diffusion of neoliberal ideologies in the Ukrainian public sector.Design/methodology/approachA qualitative methodological approach was applied. Data were collected from 29 semi-structured interviews with public sector auditors in Ukraine’s central government; secondary data analysis was also performed.FindingsIAs’ role in Ukraine’s central government has changed significantly, with reforms attempting to move to performance auditing. Consequently, Ukrainian central government IAs appeared in the multi-expectation situation, due to the division of the role senders into two different areas. On one hand, IAs are expected to perform new roles set by the Ministry of Finance of Ukraine, while their traditional role as “watchdogs” is still expected by managers (heads of institutions). Diverging expectations resulted in the role conflict that impedes the change in IAs’ role and performance auditing introduction in the Ukrainian central government. Moreover, we identify factors that motivate IAs to prioritise managers’ expectations, while trying to cope with the existing role conflict in Ukraine’s central government.Originality/valueThis study makes a threefold contribution by enriching the understanding of auditors’ roles, role conflicts that public sector auditors may experience and factors that influence how auditors cope with such conflicts, through the lenses of role theory; exploring the change in roles with the emergence of performance auditing; and shedding light on public sector auditing in the less explored context of a post-Soviet country.

Highlights

The diffusion of neoliberal ideologies (Lapsley and Miller, 2019), together with the introduction of new public management (NPM), led to a number of public sector changes, including the changes in auditing (Hood, 1995) to uphold the concept of liberty (Ferry and Midgley, 2021)
We find that diffusion of neoliberal ideologies and the adoption of NPM instruments in the Ukrainian public sector stimulated the change in internal auditors’ (IAs)’ role from that of previously existing revisors or “watchdogs.”
The study identified several factors Changing roles which impact IAs’ response to the identified role conflict. We show how those factors on three different levels (IAs’ experience and knowledge, independence and working environment) influence the way IAs cope with the existing role conflict and motivate them to prioritise the of internal auditors expectations of the second group of role senders

Summary

Introduction

The diffusion of neoliberal ideologies (Lapsley and Miller, 2019), together with the introduction of new public management (NPM), led to a number of public sector changes, including the changes in auditing (Hood, 1995) to uphold the concept of liberty (Ferry and Midgley, 2021). Previous studies showed that auditors possess knowledge and power to promote reforms and help other actors to improve government bodies (Gendron et al, 2001, 2007; Reichborn-Kjennerud and Johnsen, 2018; Morin, 2001). Performance auditing was widely discussed in academia in connection with NPM (Parker et al, 2018), quality of political and democratic processes (Tillema and ter Bogt, 2010; Morin, 2001), measurement of government performance (Gendron et al, 2007), implementation in different organisations (Barzelay, 1997; Reichborn-Kjennerud and Johnsen, 2018), etc. Possible tensions between IAs’ traditional and new roles seem to be overlooked

Objectives

Results

Conclusion