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The purpose of this paper is to examine the effects of length of service and ethical ideologies on cognitive moral development (CMD) and ethical behavioral intentions among public sector tax auditors in Brazil.

The research data were collected via survey questionnaires from a sample of 625 auditors who work for the Brazilian tax authority. Participants voluntarily complete an online instrument which included three scenarios with context-specific moral dilemmas, questions about the specific scenarios and an ethics position questionnaire. Multinomial logistic and ordinary least squares regressions were used to analyze the data.

The findings reveal that public sector tax auditors with shorter length of service are more likely to be at higher stages of moral development; relativistic ideology among public sector auditors is positively associated with more lenient ethical behavioral intention; idealistic ideology among public sector auditors is positively associated with stricter ethical behavioral intention; public sector auditors classified as absolutists are stricter in their ethical behavioral intentions; and public sector auditors classified as absolutists with length of service between 5 and 15 years are more likely to be at higher stages of moral development when compared to public sector tax auditors with longer length of service.

To the best of the authors’ knowledge, the study is one of the first studies that attempt to understand the effects of length of service and ethical ideology on CMD and ethical behavioral intention among public sector auditors. Additionally, it examines these issues in the context of Latin America.

The purpose of this paper is to explore the perception of public sector auditors on performance audit in Malaysian public sector entities. In particular, this study elicits the respondents’ opinions on the elements of performance audit, the need for involvement of auditors in policy making, relevant experts to undertake a performance audit, major constraints in carrying out performance audit and the potential of performance audit to improve public administration.

The study employed a postal questionnaire method to seek the perception of the auditors. The questionnaire was distributed to the population of public sector auditors in the National Audit Department in Malaysia and a total of 503 usable responses were received. The responses were analysed using descriptive statistical analysis including mean score and mean score ranking.

The results reveal that auditors were of the opinion that effectiveness element should be one of the performance audit elements and that public sector auditors should be given the opportunity to influence policy decisions. In addition, the results show that the public auditor is not the only profession that can carry out performance audit, but can team up with other professions. In relation to constraints in performance audit, “Lack of cooperation and commitment from auditees in conducting a performance audit” was claimed to be the topmost constraint. Furthermore, performance audit was claimed to be able to enhance public accountability, as well as to enable more economical, efficient and effective utilising of public resources.

This paper is one of few studies on public sector auditing particularly on performance auditing in the context of a developing country (i.e Malaysia).

PurposeTo explore whether there is an audit expectations gap in the public sector between the Comptroller and Auditor General's (CAG) auditors in Bangladesh and the users of the CAG reports namely the Public Accounts Committee (PAC) of the Parliament that examines the CAG audit reports and the international funding agencies (IFAs) that provide external funding in the public sector in Bangladesh.Design/methodology/approachThe perceptions of CAG auditors and users of their reports were explored using a questionnaire based on a theoretical framework of accountability and six related audit concepts.FindingsThere were statistically significant differences in perceptions between 17 CAG auditors and the 15 members of the PAC on 13 of the 25 variables and between these 17 CAG auditors and nine representatives of the IFAs on 14 of these variables.Research limitations/implicationsThe relatively small number of respondents to this questionnaire is a limitation of this research project.Practical implicationsBetter training for the CAG auditors into their report users' information requirements and expectations and better training for the members of the PAC and the representatives of the IFAs coupled with more cooperation between the CAG auditors, the PAC and the IFAs might help to reduce this audit expectations gap in the public sector in Bangladesh.Originality/valueThis is the first time that statistical evidence has confirmed the existence of an audit expectations gap between CAG auditors and users of their audit reports in the context of the public sector.

The purpose of this paper are twofold. Firstly, it explores the extent to which ethical work climate (EWC) is prevalent among public sector auditors at the National Audit Department (NAD) of Malaysia. Secondly, it examines the relationship between EWC and the work-related ethical behaviour of public sector auditors in the NAD of Malaysia.

This study used a postal questionnaire survey, which was distributed to the public sector auditors in Malaysia. A total of 823 responses from public sector auditors in 213 audit teams was received, constituting a 66% and 78% response rate, respectively. To achieve the first research objective, the responses were analysed using descriptive statistical analysis, including mean values and mean value ranking. For the second objective, hierarchical linear modelling (HLM) statistical software was used for the cross-level data analysis.

The results reveal a moderate level of the overall EWC at the NAD. The overall EWC at the team level also has a positive significant influence on work-related ethical behaviour assessed at the individual level of auditors. In terms of the individual components of the EWC, multivariate regression analysis of HLM shows collective moral (CM) sensitivity and CM judgement have a significantly positive relationship with work-related ethical behaviour, whereas CM motivation has a negatively significant relationship with work-related ethical behaviour.

The empirical evidence on the level of EWC and its components implies that there is room for improvement in the ethical climate in the NAD. The finding is important for the NAD to design necessary measures to enhance the EWC, including tightening the auditors’ code of ethics and organizing ethics-related seminars, training and workshops for the auditors. The result on the positive influence of CM sensitivity and CM judgment of work-related ethical behaviour of public sector auditors is also crucial for the NAD to further inculcate moral sensitivity and moral judgment among the public sector auditors.

This study is among the initial research that uses Arnaud’s EWC model in assessing the influence of EWC on ethical behaviour, particularly in the context of public sector organization of a developing country, i.e. Malaysia.

The purpose of this paper is to investigate factors affecting ethical work behaviour among Malaysian public sector auditors. Based on Hunt and Vitell model, there are four research objectives for this study: to investigate the influence of ethical climate on public sector auditors ethical work behaviour; to examine the effect of professional commitment on ethical work behaviour of public sector auditors; to investigate the effect of corporate ethical values (CEV) on ethical work behaviour of public sector auditors; and to examine the effect of ethical ideology on ethical work behaviour of public sector auditors.

The respondents of the study were public sector auditors of National Audit Department in Malaysia. Using a survey questionnaire comprising instruments about the ethical climate, CEV, professional commitment, ethical ideology and organisational misbehaviour, a total of 382 were received and usable. In achieving the research objectives, multiple regressions were performed.

The results reveal that ethical work behaviour among public sector auditors in Malaysia is influenced by law and independence ethical climate, professional commitment, CEV and both idealism and relativism ethical ideology.

The present study provides new additional empirical evidence on determinants of ethical work behaviour of auditors in public sector from a developing economy (i.e. Malaysia) which is currently limited.

This paper explores the value of financial statement auditing in the public sector. The study applies theory about auditing from the private sector as well as the public sector to explore ways in which public sector auditing can be expected to be valuable. It shows that there are a number of complementary explanations that can be applied to examine the value of public audit, including agency, signaling, insurance, management control, governance and confirmation explanations. The evidence from research and history is generally consistent with the agency and management control explanations. There is some support for the signaling and insurance explanations, while research evidence suggests that governance has differing impact in the public sector compared to the private. The confirmation hypothesis is also potentially relevant. Reviewing the history of the development of public sector auditing functions shows that at least some developments were consistent with explanations such as agency theory and management control. Auditing in the public sector is an area where more research is valuable. The paper concludes with a discussion of issues for further investigation.

The purpose of this paper is to advance knowledge and obtain an understanding of the phenomenon of public sector external auditing (PSEA) in Tanzania.

The paper used a grounded theory method informed by a critical approach. It used data from multiple sources including interviews, observations and documents, to provide a theoretical and practical understanding of PSEA in Tanzania. The theoretical aspects were developed ‘in vivo’ and were also informed by the Habermasian concept of colonisation.

The principal research findings from the data concern the central phenomenon of managing colonising tendencies in PSEA which appeared to be the core strategy for both the government and external auditors. While the government appeared to manage the National Audit Office of Tanzania (NAOT) appearance and exploited the legitimising features of PSEA, external auditors manoeuvred within colonising tendencies and attempted to maintain the ‘audit supremacy’ image. PSEA in Tanzania encountered colonising tendencies because of weak working relationship between the NAOT and other accountability agencies, inconsistencies in governance and politics, the culture of corruption and secrecy, dependence on foreign financing and mimicking of foreign models. To coexist within this colonising environment, external auditors managed their relationship with auditees and the complexities of PSEA roles. Managing colonising tendencies resulted into obscured subordination of PSEA, contributing to cosmetic accountability and growing public interest in PSEA.

It is hoped that future research in other countries, in and beyond Africa, will be undertaken to broaden and deepen our understanding of the external auditing of public sector entities.

The paper combines grounded theory with a critical approach to understand PSEA in a developing country.

This paper explores similarities and differences between public sector internal auditing and its counterpart in the private sector. Features examined include organizational status, outsourcing, using internal audit as a “tour of duty” function, activities and relationships with the external auditor. The study is based on a survey of chief internal auditors in organizations in Australia and New Zealand. Results suggest that there are differences in status between internal audit in the two sectors, with public sector internal auditors less likely to report to the chief financial officer. While a similar amount of work is outsourced, public sector organizations are more likely than those in the private sector to outsource to the external auditor. There is little difference between internal audit activities and interactions with external audit in the two sectors. However, private sector internal audit is perceived to lead to a greater reduction in audit fees compared to that in the public sector.

This paper aims to provide insights into how the New Zealand Office of the Auditor-General (NZOAG) legitimised the selection of topics for performance audit in the New Zealand public health sector over a 10-year period, 2003-2013, by fulfilling the key actors’ “taken for granted beliefs” of the dual roles of the NZOAG: its independence and accountability.

This paper uses evidence gathered from interviews with representatives of the District Health Boards, the Ministry of Health (including Health Advisory Committee members) and NZOAG staff, along with publically available documentary evidence over a 10-year period. The authors draw on Suchman’s (1995) authority on institutional legitimacy to inform the research findings.

The New Zealand Auditors-General (NZAGs) get inputs from various sources such as their own audit teams, parliamentary deliberations, the Ministry of Health, the District Health Boards, media and public concerns and complaints. These sources initiate ideas for performance audits. Subsequently, the NZAGs use the recurring themes and risk assessment criteria while simultaneously consulting with the auditees (the MOH and the DHBs) and other actors, such as health advisory groups, to select topics for such audits. This signals to the key actors, such as the MOH and the DHBs, that the NZOAG is addressing the topics and concerns relevant to the former while discharging its public accountability role. Furthermore, the consultative approach acts as a catalyst, ensuring that the actors involved with public sector health service delivery, specifically the auditees, accept the selected topic. This leads to a lack of resistance to and criticism of the topic; the selection process, therefore, is legitimatised, and credibility is added to the audits. Because of the consultative approach taken by the NZAGs, the actors, including the performance auditors, continue to believe that the Office acts independently from third party influence in selecting their audit topics, elevating the NZAGs’ moral legitimacy with respect to their public accountability role.

The study’s focus group does not include parliamentary representatives, only representatives from the DHBs, the MOH and the NZOAG; therefore, the conclusions on effective discharge of the NZOAG’s accountability role and Parliamentary acceptance is not conclusive – the NZOAG acts on behalf of the Parliament in discharging its accountability role and the latter is also the formal recipient of the reports.

The implications for practitioners and policymakers are that the use of a consultative approach to select topics for performance audit in the absence of performance auditing standards ensures auditee readiness and acceptance of such audits. This also promotes mutual benefits and “trust” between the AG and auditees. Such audits can be used to bring about efficacy in health service delivery.

The selected topics for audits will have an impact on citizens’ lifestyles, with improved health services delivery.

There is a dearth of research on who initiates the ideas for performance auditing and how the Office of the Auditor-General selects topics for such audits. This study adds a new dimension to the existing performance auditing literature. The authors reveal how the NZOAG seeks to legitimise the selection of topics for such audits by consulting with the auditees and other actors associated with public sector health service delivery, while upholding its independent status and making transparent how it discharges its accountability role within the context of performance auditing.

New public management (NPM) has transformed the public sector auditing context, although in quite different ways. Further, investigations into NPM’s impact on public sector auditors and audit institutions have been largely unconnected, with the exception of the critical examination of performance audits. We investigate the question of how public sector auditors’ roles and activities have changed as a result of NPM and later reforms.

We examine and synthesise public sector audit research examining reforms since the year 2000. The research presented considers changes to external and internal public sector audits as well as the development of public sector audit institutions – known as supreme audit institutions (SAIs).

Considerable changes have occurred. Many were influenced by NPM, but others have evolved from the eco-system of accounting, auditing and public sector management. External auditors have responded to an increase in demand for accountability. Additional management and governance techniques have been introduced from the private sector, such as internal auditing and audit committees. NPM has also led to conflicting trends, particularly when governments introduced competition to public sector auditing by contracting out but then chose to centralise to improve accountability. There is also greater international influence now through bodies like the International Organisation of Supreme Audit Institutions (INTOSAI) and similar regional bodies.

NPM reforms and the eco-system have impacted public sector auditing. Sustainability reporting is emerging as an area requiring more auditing attention; auditors also need to continue to develop better ways to communicate with citizens. Further, research into auditing in non-Western nations and emerging technologies is also required, especially where it provides learnings around more valuable audit practices. Empirical evidence is required of the strengths and weaknesses of SAIs’ structural variety.