The impact of external audit on the accountability of the common fund of the Mozambique National Institute of Statistics

Luís Leonardo Cumbe (Instituto Superior de Contabilidade e Administração, Universidade de Aveiro, Aveiro, Portugal)
Helena Inácio (Universidade de Aveiro, Aveiro, Portugal)

Managerial Auditing Journal

ISSN: 0268-6902

Publication date: 4 June 2018

Abstract

Purpose

The purpose of this paper is to evaluate the impact of external audit on the management of the Common Fund of the Mozambique National Institute of Statistics (INE).

Design/methodology/approach

This paper followed a case study approach of the INE Common Fund that was based on the qualitative evidence from the content analysis of the external audit reports, annual plans of activities and budget for the past seven years and interviews with middle managers of the INE.

Findings

The research found that external audit has a relatively significant impact on the management of the INE Common Fund. The authors attribute the positive impact to the high concern of management to implement the external audit recommendations, associated with the financial dependence between the agent (the National Institute of Statistics) and the principal (Fund Donors), explained through Laughlin’s Model of Accountability.

Practical implications

The results indicate that external audit associated with the financial dependence of the agent on the principal has a significant impact on the accountability. Thus, it contributes to assist in the formulation of public policies on external financing to developing countries.

Originality/value

Most of the studies on external audit and accountability are from countries with more developed economies than Mozambique’s, without heavy reliance on external financing, and these studies analyse the audits carried out by public audit institutions. This research explores the phenomenon in the context of external financing to the State Budget by governments and international organisations.

Keywords

Citation

Cumbe, L. and Inácio, H. (2018), "The impact of external audit on the accountability of the common fund of the Mozambique National Institute of Statistics", Managerial Auditing Journal, Vol. 33 No. 6/7, pp. 538-557. https://doi.org/10.1108/MAJ-01-2017-1500

Download as .RIS

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.