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The purpose of this paper is to close the gap between theoretical approaches to strategic operations auditing and empirical analysis of practice in service organisations. Through analysis of the two different views of strategy formulation – environment‐market and resource‐based – the paper aims to provide insights on how strategic operations audit methods are being used and under what circumstances.

The case study methodology was employed which involved a three‐stage data collection and analytical process. Its purpose was to identify how strategic operations audit methods were being used, why they were used and the particular circumstances of their use. Trails of operational improvement within each of six case studies show links between service operational activities, the benefits achieved by the improvements and the formulation and/or execution of each service company's business strategy. These trails of improvement provided a means by which to reveal some of the strategic operations audit methods being used. In addition, interviews and analysis of supporting documentation ensured the complete set of methods being utilised was identified.

The results indicate three main findings. First it is recognised that the service companies all look to adopt a top down approach to strategic operations auditing and seek to maintain, and where possible, gain greater strategic impact from their service operations. Second, the competitive state of the business impacts the choice of strategic operations audit method used. All companies studied employed an environment‐market method to assess operations – market fit. Only when a company is confident of its competitive position will managers then look to also devise a resource‐based method in order to assess its current ability to nurture new capabilities to exploit. Third, companies use a variety of integration techniques to verify on‐going cohesion across infrastructural decision‐making categories of the content of service operations strategy. The assessment of cohesion within service operations strategy takes place within subsets of the content of the strategy. The authors did not find integration techniques that hone structural decision categories or service operations strategy as a whole. The results also show that methods used by managers are pale imitations of the rigorous procedures originally devised by researchers.

Service operations managers possess inadequate understanding of how the application of a strategic operations audit method should be made and limited ability to undertake the audit in a structured and meaningful way. A strategic operations audit methods selection process is put forward to remedy this. The process acknowledges that the choice of a particular method is contingent on the stage of development of the company's service operations strategy. It guides managers through the decision‐making process of what strategic operations audit method to use and when managers should be using it. The message for academics is that new resource‐based methods need to be created that are accessible to managers and relevant when service operations strategy has successfully evolved to the point where greater influence is being sought from it in the formulation of business strategy.

An empirical study within service operations management of the practice of strategic operations auditing is rare. The paper's findings begin to address the gap between theory and practice. The paper presents revisions and additions to the operations manager's tool kit of strategic operations audit methods and culminates in a selection process to guide managers on which tool to use and when.

The aim of this paper is to contribute to knowledge about the diversity of credibility arrangements in new audit spaces “in the margins” of auditing and the implications of such arrangements.

The paper is based on an in-depth qualitative study of the lesbian, gay, bisexual, transgender, queer and intersex (LGBTQI) rights certification run by the Swedish Federation for Lesbian, Gay, Bisexual, Transgender, Queer and Intersex Rights (RFSL) during its first decade of operation. We have interviewed employees and studied documents at the certification units within the RFSL. We have also interviewed certified organizations.

We highlight two features that explain the unusual credibility arrangements in this audit practice: the role of beneficiaries in the organizational arrangements chosen and the role of responsibility as an organizing value with consequences for responsibility allocation in this certification. These features make it possible for the RFSL to act as a credible auditor even though it deviates from common arrangements for credible audits.

The RFSL certification is different in several ways. First, the RFSL acts as both a trainer and an auditor. Second, the trainers/auditors at the RFSL have no accreditation to guarantee their credibility. Third, the RFSL decides for itself what standards should apply for the certification and adapts these standards to the operation being audited. Therefore, this case provides a good opportunity to study alternative credibility arrangements in the margins of auditing as well as their justifications.

Internal auditing has during the 1990s become a dynamic discipline. Most of this change has been the result of the progressive approach taken by the leaders of the profession in applying the technological and behavioral innovations and advances in thinking to an operation that has tended in the past to be conservative and reactionary. The new approaches are substantial in number and individual in context. The trend is to group the following areas: philosophical, methodological and operational. The constantly evolving changes require that internal auditing itself be constantly evaluated to ensure that it is functioning efficiently and effectively.

The purpose of this paper is to examine the conditions and processes affecting the operation of an audit committee within the context of a New Zealand district health board (DHB).

The methodology used in this paper was exploratory and qualitative, including the analysis of secondary data and semi‐structured interviews.

Using the New Zealand Auditor‐General's best practice guidelines for a public sector audit committee as a benchmark, the paper finds that the DHB rates moderately well in terms of “effectiveness potential”. However, factors are identified concerning the audit committee members' independence, competence, tenure, and remuneration, which impinge upon the overall effectiveness of the audit committee. Despite apparent shortcomings in these areas, the informal networks between audit committee members and management serve to maximise the “realisation” of what potential effectiveness exists. As a result, the audit committee is perceived by its stakeholders (management, auditors, and committee members) as being a valuable tool to assist the DHB board in achieving proper governance.

There are no specific regulatory or legislative requirements for establishing audit committees in the New Zealand public sector. The findings from this paper may be useful to public sector entities that are considering establishing an audit committee and to entities, including the one in this paper, that wish to improve the effectiveness of their existing audit committees.

Most studies of audit committees to date have focuses on corporate sector entities; this is the first qualitative paper of an audit committee of a public sector entity in New Zealand.

This paper analyses the deregulation of the municipal audit market in Norway, in particular how organization of the service affected audit costs.

The paper uses multiple regression analysis of administrative as well as survey data of organizational structure and audit costs from 312 municipalities in Norway in 2012.

The introduction of contracting out in the municipal audit market in Norway in 2004 contributed to a reduction in audit fees eight years after the deregulation, compared to the situation four years before the deregulation. The type of audit, mixing inter-municipal co-operation and contracting private auditors, was related to lower costs.

The data does not include audit quality and are restricted to one country.

The municipalities that combined inter-municipal co-operation and contracting a private auditor achieved the lowest costs. Hence, neither pure in-house production (“make”) nor outsourcing (“buy”) but mixing several governance forms (hybrid organization) was related to low costs.

Contracting out is a core element of new public management (NPM) but has often been a contested tool in public policy. This paper provides empirical evidence on the effects of a reform of a professional service, which is relevant for many services in the public sector.

This paper contributes by filling some of the gaps in the public sector accounting and public management reform literature by studying the organization and costs of the municipal audit, specifically by including transaction costs, addressing plural governance forms in addition to pure in-house production, inter-organizational co-operation and market contracting and by studying long-term effects.

This paper seeks to investigate the conditions and processes affecting the operation and potential effectiveness of audit committees (ACs), with particular focus on the interaction between the AC, individuals from financial reporting and internal audit functions and the external auditors.

A case study approach is employed, based on direct engagement with participants in AC activities, including the AC chair, external auditors, internal auditors, and senior management.

The authors find that informal networks between AC participants condition the impact of the AC and that the most significant effects of the AC on governance outcomes occur outside the formal structures and processes. An AC has pervasive behavioural effects within the organization and may be used as a threat, an ally and an arbiter in bringing solutions to issues and conflicts. ACs are used in organizational politics, communication processes and power plays and also affect interpretations of events and cultural values.

Further research on AC and governance processes is needed to develop better understanding of effectiveness. Longitudinal studies, focusing on the organizational and institutional context of AC operations, can examine how historical events in an organization and significant changes in the regulatory environment affect current structures and processes.

The case analysis highlights a number of significant factors which are not fully recognised either in theorizing the governance role of ACs or in the development of policy and regulations concerning ACs but which impinge on their governance contribution. They include the importance of informal processes around the AC; its influence on power relations between organizational participants; the relevance of the historical development of governance in an organization; and the possibility that the AC's impact on governance may be greatest in non‐routine situations.

In this research, using an analytical framework on factors affecting the quality of auditing services, we consider factors that affect an expectations gap in providers and users of auditing services related to factors affecting auditing quality. Effective factors studied in this regard are professional features, including the professional role of individuals in the auditing process (auditors against preparers of financial statements), professional experience of individuals, professional rating and size of auditing firms. The first statistical society consists of certified public accountants (CPAs) working in the auditing organization and audit firms in Iran, and the second statistical society consists of all investment companies that operate under the supervision of the Tehran Stock Exchange Organization. Based on the results of the research, the role of professionals in the auditing process is not effective as an independent auditor or financial statements provider, as well as the professional experience of individuals in the expectations gap from factors affecting auditing quality, while the size and qualities of the auditing firms were influenced by the expectations gap of individuals in the field of auditing regulation.

From a management viewpoint, identifies the quantitative information relative to environmental activities the management should have. Describes the types of auditing that should be conducted to protect the organization. Cost and liabilities must be established on an objective and realistic basis. Auditing by external and internal auditors must be the safety valve – the control that helps to ensure that there will be a minimum exposure to serious problems and then, when the problems occur, that the requirements of the government agencies are met.

One of the three areas to which internal auditing is targeted is effectiveness. Yet we do not often determine whether the internal auditing function is itself operating effectively. We must identify the basic objective of internal auditing, define the goals to be accomplished, establish measures relative to achieving those goals, and finally evaluate the overall internal auditing process. We must separate the usual measures of output from the overall measures of outcome to determine the cost effectiveness and operational improvement aspects of the internal audit process. The former, the time‐honored internal audit output measures must be supplanted by internal audit effectiveness achievements.

Ethiopia has enacted laws on transparency and disclosure of information in state-owned enterprises (SOEs). However, these laws are not strict enough, with the transparency and disclosure practices disappointing in the country. Thus, this study aims to investigate the legal framework governing transparency and disclosure in SOEs.

This study uses doctrinal, qualitative and comparative approaches. Domestic legal texts are appraised based on the organization for economic co-operation and development Guideline on Corporate Governance of State-owned Enterprises, the World Bank Toolkit on Corporate Governance of State-owned Enterprises and best national practices. This approach has been further corroborated by qualitative analysis of the basic principles of transparency and disclosure.

The finding reveals that the laws on transparency and disclosure do not comply with global practices and are inadequate to ensure transparency and discourse in SOEs. They fail to establish appropriate disclosure frameworks and practices at the SOE and state-ownership entity levels. They also indiscriminately subject enterprises to multiple auditing functions and conflicting responsibilities.

To the author’s knowledge, this study is the first legal literature on transparency and disclosure in Ethiopian SOEs. This study assists the state as owner in reforming the laws and uplifting SOEs from their current unpleasant condition. It can also become a reference for future research.