Public Sector Auditing and Corruption: A Literature Review

Assakaf, Ebrahim Ahmed; Samsudin, Rose Shamsiah; Othman, Zaleha

doi:10.5296/ajfa.v10i1.13029

Cited by 17 publications

(16 citation statements)

References 47 publications

(92 reference statements)

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“…There is a relatively low number of studies on how SAIs influence governmental effectiveness and corruption. This study found, in line with [54][55][56], that although there is evidence that audits in the public sector may contribute to fighting corruption, there are few studies investigating the role of SAIs in detecting and fighting this phenomenon and in deeply analyzing the contribution of different types of audits to fight against corruption. Assakaf et al [54] argue that no one has managed to give a specific answer to how SAIs contribute to preventing and fighting corruption, and there are no studies researching the link between the performance of audits in the public sector and corruption.…”

Section: Supreme Audit Institutionssupporting

confidence: 62%

Supreme Audit Institutions and Sustainability of Public Finance. Links and Evidence along the Economic Cycles

et al. 2021

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Against the backdrop of concerns for diminishing the vulnerabilities of the economies of the Member States, the EU has adopted measures to strengthen budgetary discipline and control of the public deficit. In this context, the responsibility of government institutions has increased, not only in ensuring the sustainability of public finances but also in direct or indirect cooperation for good economic governance. From this perspective, this study aims to assess the impact of macroeconomic variables and those associated with supreme audit institutions on the sustainability of public finances measured by the size and dynamics of government deficit and gross public debt. Additionally, the impact of the same variables on governmental effectiveness and control of corruption has also been assessed. The data collected from secondary sources and panel data models were used to conduct an empirical study of the EU Member States which covered the 2002–2019 period and the sub-periods, divided as follows: pre-crisis, crisis, and post-crisis. The results of the study show that supreme audit institutions, through their organizational structure, the nature of their activities, and professionalism, may contribute to the reduction of public deficit and gross public debt and, implicitly, to higher efficiency and control of corruption. The results of analyses for the sub-periods show that ISAs played a more important role in reducing government deficit during crisis and post-crisis periods. By confirming or rejecting the results of the few studies that have been conducted so far, this study provides additional evidence that fills the gaps in the literature.

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Section: Supreme Audit Institutionssupporting

confidence: 62%

Supreme Audit Institutions and Sustainability of Public Finance. Links and Evidence along the Economic Cycles

et al. 2021

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“…The necessity for IA function arises more in the public sector due to the complexity of the commonly broad objectives (Schillemans and van Twist, 2016) and the multiplicity of the audience whose expectations are varied (Menza et al , 2019; Pilcher et al , 2013). Hence, public funds must be safeguarded, and the management of the public sector enterprises should ensure an efficient IA (Abuazza et al , 2015; Assakaf et al , 2018).…”

Section: Introductionmentioning

confidence: 99%

Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

Alqudah

Amran

Hassan

2019

EMJB

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Purpose The purpose of this paper is to investigate the moderating effect of task complexity on external auditors’ cooperation (EAC), top management empowerment and internal auditors’ independence, which affect internal auditors’ effectiveness in the Jordanian public sector. Design/methodology/approach This paper utilised 117 usable questionnaires from financial managers and internal audit (IA) managers of the Jordanian public sector institutions. The collected data were analysed using partial least squares-structural equation modelling (PLS-SEM). Findings The results reveal that EAC, top management empowerment, and internal auditors’ independence are the factors which positively and significantly affect the internal auditors’ effectiveness, as supported by the resource-based theory, with incomplete support for the task complexity’s role as a moderator. Practical implications The findings are important for the decision-makers and regulators in introducing new legislation and regulation for the IA profession in the Jordanian public sector. Social implications It is shown that the factors affecting the internal auditors’ effectiveness can definitely enhance their ability to achieve the role of IA in protecting public funds and limiting financial and administrative corrupt practices, particularly in the public sector. Originality/value To the best knowledge of the authors, this study is one of the first studies that addresses task complexity as an interaction effect on the factors affecting internal auditors’ effectiveness in the public sector.

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“…In line with a significant result of the follow-up audit on fraud against the local government budget, this means that the follow-up audit had a negative effect on the fraud against the local government budget. Assakaf et al (2018) state that audit entities have a critical position in the follow-up process to audit results (Zahra et al, 2021).…”

Section: Discussionmentioning

confidence: 99%

Antecedents of the Accountability in Indonesian Local Government Financial Reporting

Abdullah

Sudirman

Masdar

et al. 2022

J. Professional Business Review

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Purpose: This study aims to analyze the role of the government’s budget supervision on financial accountability to reduce fraud against the local government budgets. Theoretical framework: The theoretical framework from Gabrini (2013) highlights the importance for organizations to design and manage financial reports and audits to maintain legitimacy, along with the increasing demands for transparency and accountability of public organizations today. Design/methodology/approach: To achieve this goal, the data used in this study is secondary data sourced from the central and regional government’s auditing board between 2016 to 2019. Findings: The results showed that budget supervision negatively affects the accountability of local government financial reports. Moreover, a follow-up audit has a negative effect on the fraud against the local government budget and has a positive effect on financial accountability. The results also demonstrated a negative effect of financial accountability on the fraud against local government budget. Research, Practical & Social implications: As the implication, the government is expected to draft an implementing regulation as a technical guideline to avoid fraud against the government budget. In order to encourage an increase in the target of unqualified opinions, it is expected that the central government can provide incentive funds to regional governments that get unqualified opinions to maximize their capacity to increase financial accountability. Originality/value: This research is among the first in empirically examinating the full mediating effect of financial accountability in the relationship between budget supervision and the fraud against local government budget in Indonesia.

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Public Sector Auditing and Corruption: A Literature Review

Cited by 17 publications

References 47 publications

Supreme Audit Institutions and Sustainability of Public Finance. Links and Evidence along the Economic Cycles

Supreme Audit Institutions and Sustainability of Public Finance. Links and Evidence along the Economic Cycles

Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

Antecedents of the Accountability in Indonesian Local Government Financial Reporting

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