Public Audit Research Articles

Debate: Studying the regulatory space of public sector audit—the historical turn

Debate: Studying the regulatory space of public sector audit—the historical turn

Exploring the availability and accessibility of menstrual friendly public toilets (MFPTs) in urban spaces: A global multi-city audit study.

Public toilets enable populations, including those who menstruate, to move through public spaces. Menstrual Friendly Public Toilets (MFPT) are accessible, safe, and clean public toilets that provide those who menstruate the space and resources to navigate cities with dignity and comfort. However, there is little evidence on the status of MFPTs in urban centers. This study assessed the menstrual friendly characteristics of public toilets in Barcelona, Kampala, Manila, New York City, Osaka, Rio de Janeiro and quantified the overall "menstrual friendliness" by city and neighborhood type. We conducted public toilet audits in four types of neighborhoods (Business, Tourist, Transit hub, Residential) in each city. The audit tool captured a range of menstrual health and hygiene (MHH) characteristics. Aggregate scores ("MFPT Index") were calculated to summarize the menstrual friendliness of public toilets within the neighborhoods and across cities. A total of 181 public toilet audits were analyzed. Areas around Transit hubs had the highest density of toilets, Residential areas were comparatively under resourced, and toilets in Business areas were relatively more "menstrual friendly." The overall mean score for the MFPT Index was 0.67, ranging between 0.49 and 0.79 across cities. Sub-domain scores of the MFPT Index indicated key aspects for improvement in relation to Accessibility, Structure, Privacy/Safety, General Resources, Cleanliness, and MHH Resources. There is a significant gap in the provision of MFPTs in urban centers. Further research is needed to understand the extent of challenges related to accessibility, structural amenities, and availability of MHH-related resources, and how they can best be addressed. Our study's findings underscore the need for the prioritization of MFPTs in public spaces to ensure all individuals have equitable access to manage their menstrual cycles.

The role of public auditing in delegated governance

The role of public auditing in delegated governance

"THE INFLUENCE OF APIP COMPETENCE, INDEPENDENCE AND TIME BUDGET PRESSURE ON AUDIT QUALITY IN THE PUBLIC SECTOR: A CASE STUDY IN EAST LUWU REGENCY"

This study analyzes the factors that affect the quality of public sector audits, focusing on APIP Competencies (X1), Independence (X2), and Time Budget Pressure (X3). Data was collected through a questionnaire distributed to auditors in East Luwu Regency and analyzed using path analysis. The results showed that Independence had the most significant influence on audit quality (path coefficient = 0.520; p = 0.000), followed by Competency (path coefficient = 0.389; p = 0.010). In contrast, Time Budget Pressure had an insignificant negative effect on audit quality (path coefficient = -0.149; p = 0.111). The novelty of this research lies in emphasizing the importance of independence and competence of auditors in the context of Indonesia's public sector, especially in East Luwu, as well as time management in the implementation of audits.

Time Budget Pressure, Professional Ethics, Experience, Auditor Competence and Audit Quality

This study seeks to analyse the impact of time budget pressure, the professional ethics of public accountants, work experience, and auditor competency on audit quality at PKF Public Accounting Firm, which is ranked among the top 10 accounting and professional services businesses in Indonesia. The study's population comprised 103 personnel from the Public Accounting Firm Drs Paul Hadiwinata, Hidajat, Arsono, Retno, Palilingan & Rekan (PKF International), including 93 Auditors and 10 HR Administrators and Staff. This study employed a purposive sampling methodology. This research employed a questionnaire as a survey instrument to gather respondent data. This study processed data from 68 respondents, representing 85 percent of the disseminated questionnaires. The software employed to examine the variable association in this study is SPSS 22. This study's findings demonstrate that time budget pressure, professional ethics, and experience positively influence audit quality. Conversely, auditor expertise does not influence audit quality. Keywords: Time Budget Pressure, Professional Ethics of Public Accountants, Work Experience, Auditor Competence and Audit Quality.

Towards a New Approach to External Public Audit in Romania — A Brief Essay

Our paper analyzes recent transformations in the field of external public auditing in Romania, with a particular focus on the transition toward a modern, performance-oriented approach aimed at improving processes. The reforms initiated by the Romanian Court of Accounts aim to adopt best international practices, moving away from traditional coercive methods such as „error hunting” and a focus on sanctions. The proposed „pure” auditing approach emphasizes the formulation of actionable recommendations and effective measures, grounded in professional missions and rigorous performance analysis. The paper also highlights the progress made in increasing the transparency of the Court of Accounts' activities, including the development of guidance mechanisms and uniform practices for external auditors and audited entities. In the context of accelerated digitalization, the institution has implemented modern solutions for data collection and processing, contributing to the prompt drafting of reports and providing better assistance to beneficiaries. These developments position Romania's external public auditing on an upward trajectory, with the potential for alignment with the standards of similar institutions in advanced countries, while also offering substantial support to the majority of good-faith entities. To capture the new directions adopted in external public auditing in Romania, after this brief Introduction (1), we focus on the issue of The renunciation of the jurisdictional function of the Court of Accounts (2) and the topic of Breaking away from the past through continuous reform measures (3), concluding with a Conclusions section (4).

Attempts to Expand the Competencies of External Public Auditors into the Area of Consultancy — Case of the Romanian Court of Accounts

This paper examines the potential effects of legislative proposals aimed at amending Law No. 94/1992 on the organization and functioning of the Romanian Court of Accounts. Primarily, it is observed that if these initiatives were adopted, they would allow public entities to request information, methodological clarifications, or detailed answers to various questions from the regional Chambers of Accounts. The responses would need to be provided in writing, in the form of an opinion, within 30 days. If the applicant finds the opinion unsatisfactory, they would have the right to challenge it, with justification, within 10 days of receiving the document. Subsequently, a specialized court would resolve the challenge within 10 days of its registration, either upholding or annulling the opinion, in whole or in part. However, the Legislative Council, in its advisory opinion, pointed out that assigning the Court of Accounts the obligation to provide periodic consultancy to interested parties contravenes its constitutional role. Such a mandate would diminish the institution's primary function—control—thereby questioning the balance and efficiency of its activities. Other opinions, discussed in the paper, also highlight delays in legislatively transitioning the Romanian Supreme Audit Institution from financial control to specialized consultancy. The structure of this study includes: (1) Introductory considerations on the creation and functioning of the Romanian Court of Accounts, (2) An analysis of parliamentary efforts to orient the Court's activity toward providing specialized consultancy to public entities (2.1 - An initial initiative focusing on guidance/prevention and discouraging auditor misconduct; 2.2 - Attempts to introduce provisions in Law No. 94/1992 establishing consultancy as a task for auditors), and (3) Conclusion.

Technology Adoption Factors for Supreme Audit Institutions

Objective –Arguably, there is a shortage of research on how supreme audit institutions can use cutting-edge technologies to make them more effective and stay up with the evolving audit landscape as we are in the 4IR age. Professional auditing and accounting groups encourage using cutting-edge technologies in accounting and auditing duties. However, public sector auditing is trailing behind in the digital transition. Guidelines regarding the elements that superior audit institutions must consider when implementing cutting-edge technologies are still required. This paper fills the gap in the literature by providing technology adoption factors that have been verified for usefulness and practicability and then evaluated in order of significance by experts from eight different countries. Therefore, the findings and recommendations of the paper are applicable and relevant on a global scale.Design/Methodology –Experts were consulted to validate and rate the importance and practicability of the variables and processes for technology adoption using two Delphi questionnaires.Results –The technology adoption factors identified were assistance from top management, a plan for embracing technology, and fostering an environment focused on digital culture. Assessing the current systems for compliance with legislation, organization-wide preparation, and the ability to incorporate new technology, ongoing staff training, regulatory compliance, environmental policies, and audit standards are necessary. Evaluating the technology's compatibility and complexity, doing a cost-benefit analysis, and determining whether the auditee platforms are ready for advanced technology auditing were rated as important technology adoption factors by experts.

An Examination of Performance Audit Principles in Public Sector Audit: An Interpretive Study in Bangladesh

This paper aims to assess the principles of performance auditing (PA) in the public sector of Bangladesh. The PA is conducted by the supreme audit institution of the country, the Comptroller and Auditor General (OCAG). To attain the objective this study analyses all the performance auditing (PA) reports published by the OCAG. There are 19 published PA reports. The PA report has been classified into several principles, including the 3Es as suggested by the International Organization of Supreme Audit Institutions (INTOSAI). The level of compliance has been integrated into the classification scheme of the PA reports. The contents analysis demonstrates that Effectiveness has been addressed in the highest number of reports whereas Efficiency has not been addressed in any reports. The extended classifications (beyond 3Es) have been reflected in the PA reports rarely. In addition, compliance issues have been presented weakly in the reports. The findings have been analyzed in line with the contemporary studies in public sector auditing. Public sector auditing has been studied merely in developing countries. This study will contribute to this aspect. Moreover, the future potential research avenue has been explored in this study. The limitation of this study is confined in the number of reports which is 19. Therefore, these limited available data and the uniqueness of the developing country defy the generalization of the findings but can contribute to the PA research in developing countries.

The Alignment of Internal and External Audit Agencies in Administering Public Sector Audits in Indonesia

The management of public finance to achieve national prosperity requires the effective, efficient, and integrated work of the existing audit boards. Therefore, continuous evaluation of the alignment of internal and external audit agencies is essential to ensure reliable public financial management and prevent corruption. This study describes the performance and coordination patterns between internal and external audit agencies by detailing their synchronization patterns in administering financial audits in the Indonesian public sector. Using a normative legal research method, the study incorporates legislative and conceptual approaches. The findings reveal that the performance of both internal and external audit agencies in safeguarding public finance from fraud shows varied degrees of effectiveness. However, a comprehensive regulatory framework governing the alignment of these agencies remains absent. Furthermore, synchronization in public finance audits is pursued through a unified regulatory framework, horizontal alignment among agencies, and the establishment of clear boundaries of authority and coordination mechanisms between the internal and external audit agencies. Further research should consider the potential for consolidating various regulations of public sector audits through an omnibus law approach.

Pengaruh Ukuran Perusahaan, KAP, Kualitas Audit, dan Inflasi terhadap Nilai Perusahaan Sektor Transportasi dan Pergudangan di BEI

This study examines the influence of company size, the size of Public Accounting Firms (KAP), audit quality, and inflation on the value of companies in the transportation and warehousing sectors listed on the Indonesia Stock Exchange (IDX). Using a quantitative approach with an explanatory method to analyze causes and effects, this study took a population of 22 companies in the sector listed on the IDX during the 2020-2023 period. Through the purposive sampling technique, 44 observation samples were obtained which were analyzed by the multivariate regression method. The results show that company size does not have a significant influence on the value of companies in the transportation and warehousing sector. In contrast, the size of the KAP has a significant effect and suggests that companies audited by larger KAP tend to have higher company values, likely due to a better reputation in the eyes of investors. Meanwhile, audit quality and inflation did not have a significant impact on corporate value in this sector, indicating that external factors of inflation and variability in audit quality did not have much impact on the perception of corporate value for investors in this sector. Overall, although company size, KAP size, audit quality, and inflation are not all individually significant, these variables together still show an influence on the value of companies in the transportation and warehousing sectors listed on the IDX. These findings provide insights for management and investors in considering factors relevant to the company's value.

Unintended environmental consequences of anti-corruption strategies

High agricultural profits motivate politicians to collude with local elites and ignore illegal conversion of natural forests. Fighting corruption through fiscal audits can improve local governance in general but may also unintentionally intensify such collusion and rent extraction activities within the less scrutinized forestry sector. This paper highlights such unintended consequences of a federal anti-corruption strategy in Brazil by documenting the causal effects of randomized fiscal audits on deforestation dynamics, a non-targeted outcome. Between 2003 and 2011, public audits of federal funds increased deforestation by about 10% in municipalities of the Brazilian Amazon within the first three years after the audit. The audits triggered forest loss, especially during election years, in municipalities governed by first-term mayors who managed to win re-elections afterwards, and in places with a high share of cattle ranching, indicating potential collusion between local politicians and the agricultural sector.

Exploring the challenges and barriers to implementing public auditor recommendations in Ghana’s public sector

Exploring the challenges and barriers to implementing public auditor recommendations in Ghana’s public sector

Penta helix collaboration in the completion of follow-up of public financial audit results in Indonesia

Penta helix collaboration in the completion of follow-up of public financial audit results in Indonesia

Public Sector Audit Reforms and Financial Management

Developing economies across the world face high public corruption and weak financial management, and the role of sound audit practices in shaping the narratives is still at the exploring stage in most countries in sub-Saharan Africa. This research explores the nexus between public audit reforms and public sector financial management using survey research design and Nigeria as a case study. Participants in the study were drawn from The Office of the Auditor General of the Federation (OAuGF) Headquarter in Abuja. Agency theory anchored this study and simple descriptive analytics was used in testing the seven hypotheses. The research established that: the recent audit reforms carried out in Nigeria are considered necessary for better public sector financial management; Nigeria’s audit system has a strong connection with public sector financial management; there is a need for the establishment of Federal Audit Service Commission (FASC) in Nigeria; the recent audit reforms will block treasury loot and leakages in Nigerian public funds management; Nigeria needs effective audit laws to wholesomely fight corruption through recent audit reforms; and the recent Nigerian audit reforms embrace integrity, transparency and accountability in the management of public funds. The study makes the following recommendations: there is a need for audit staff orientation and professional development in order to promote their overall productivity and efficiency; there is a need for the establishment of Federal Audit Service Commission (FASC) in order to promote the independence of Nigerian Audit system from executive interferences; Nigeria audit laws should be strengthened to curtail fund leakages, wastages of public property, and promotion of value-for-money expenditures; and the recent audit reforms carried out by the government of Nigeria should be sustained and given all necessary supports in order to achieve the desired results.

An examination of Pacific nations’ legislatures’ interactions with Supreme Audit Institutions and the impact on audit quality

Purpose The purpose of this paper is to report a study of public accountability within the political and economic structures that characterise Pacific nations. The authors examine audit quality with respect to Pacific Island nations’ governmental reporting to investigate ways to improve accountability in a region that is economically and environmentally challenged. Design/methodology/approach The authors examine whether audit quality in Pacific Island nations is associated with the practical arrangements of Supreme Audit Institutions (SAIs), taking into account external factors. The “practical arrangements” include the independence of a SAI (regarding its staffing and funding) and also the requirement for it to report to the Executive. The financial setting in each jurisdiction has been seen to impact the quality of financial reporting and auditing. The authors examine mediating factors such as income, political stability and education that may also impact audit quality. This study uses publicly available databases as well as jurisdictional annual reports and the associated audit opinions and management letters (where available). Jurisdictional reports on public financial management were also analysed. Findings The authors find that public sector audit quality is low in many Pacific countries, concluding that public accountability is impaired. While the authors recommend changes to the practical arrangements that can improve audit quality, the mediating factors also impact audit quality. They argue that a renewed focus on financial capability could enhance public accountability in these nations, but there are limiting factors that are difficult to overcome. Practical implications There are problems in providing accountability for public sector activities in Pacific nations. The authors suggest that improvements to the appointment and funding of SAIs to enhance their independence will help to reduce these issues. Originality/value The authors present a framework for analysing SAIs’ practical arrangements and audit quality that includes variables that may mediate the effects of these practical arrangements. They apply the model to 20 Pacific jurisdictions, showing that the practical arrangements of a SAI directly impact audit quality. Nevertheless, there are instances where audit quality is poor despite good practical arrangements, implying that mediating factors also play a substantial role in determining audit quality of a SAI.

「사립학교법」과 「개인정보 보호법」의 괴리에 관한 고찰: 징계사유조사와 징계의결요구를 중심으로

Among the many challenges regarding the interpretation and application of the Personal Information Protection Act, we paid attention to the conflict between the Private School Act and the Personal Information Protection Act, which are facing in the self-audit practice of school corporations, and discussed solutions to them. Specifically, how to interpret Article 18 of the Personal Information Protection Act determines whether the audit is legal or illegal under the Private School Act, and there are cases in which audit personnel at school corporations are accused of criminal matters. Based on this awareness of the problem, this paper ① presented possible case, ② looked at the actual laws surrounding self-audit, ③ introduced the decisions of the Personal Information Protection Committee, ④ identified the application of the Personal Information Protection Act through in-depth interviews with investigative police officers, and ⑤ presented solutions to the case and promoted legislative suggestions. Investigative police officers who participated in the interview answered that they did not clearly understand the Personal Information Protection Act, and that the concept of the Personal Information Protection Act itself was ambiguous and faced considerable difficulties. As an improvement plan, it was suggested that Article 18 (2) of the Personal Information Protection Act should add “in the case of “audit” in public institutions (to which the Personal Information Protection Act applies) as a requirement for the use of personal information outside the purpose and provision of it to a third party, or include “school corporations and affiliated schools” in Article 2 (4) of the Public Audit Act.

Analysis of foreign practice of forming indicators for auditing the efficiency of government agencies' activities

The article highlights the topical problem of analysing and managing the effectiveness of public bodies' performance on the basis of international experience. The introduction argues the significance of effective public administration to ensure socio-economic stability and security of national resources. The aim of the study is to adapt foreign methodologies and practices to optimise the use of public funds in Kazakhstan. The literature review presents performance audit as a result of the development of result-oriented budgeting and a factor contributing to the efficiency of public bodies. Key aspects are considered: the role of publicity and transparency in governance, the effectiveness of public audit bodies and the reduction of irregularities in budget spending. Special attention is paid to international standards and practical experience of performance audit, emphasising adaptation to the specifics of Kazakhstani legal regulation and national traditions. The article analyses the challenges faced by Kazakhstani authorities in implementing a system of performance audit indicators, including the choice and methodological justification of indicators, as well as their role in assessing the performance of state structures.

New development: Assurance on public sector sustainability reporting—time to be proactive

IMPACT This article highlights the relevance of assurance of sustainability reporting (SR) in the public sector, discussing who can develop the assurance process and what standards can be used for this purpose. It provides a contribution in an original and new area that will be of interest to standard setters, supreme audit institutions, practitioners and scholars in the field of public sector accounting and auditing. The article contributes to the creation of a legitimate space for SR for public sector entities.

THE INFLUENCE OF AUDIT DELAY, SIZE OF PUBLIC ACCOUNTING FIRM, AUDIT OPINION, AND MANAGEMENT CHANGE ON AUDITOR SWITCHING

This study explores the impact of audit delay, the size of public accounting firms, audit opinions, and management changes on auditor switching among companies listed on the Indonesia Stock Exchange. The research aims to identify the key factors that influence a company's decision to switch auditors. Using logistic regression analysis and secondary data from financial reports, the study introduces a unique approach by simultaneously analyzing four independent variables, which is rarely done in prior studies. The results reveal that audit delay and management changes significantly affect auditor switching, while the size of public accounting firms and audit opinions do not have a significant impact. The findings suggest that operational and managerial factors play a more critical role in auditor switching decisions compared to financial factors. Theoretically, the study supports the relevance of agency theory in explaining auditor switching, particularly in addressing conflicts of interest between management and shareholders. Practically, these results provide valuable insights for company management when deciding to switch auditors and highlight the importance for regulators to implement policies that enhance transparency and audit quality, strengthening corporate governance practices in Indonesia.