Evolution of Public Sector Audit: Challenges and Solutions
Explore the future of public sector audit in a global context, addressing complexities like accounting scandals, regulatory compliance, and organizational structures. Theoretical frameworks and incremental alternatives are discussed, highlighting the need for improved public value. Interesting developments such as globalization, digitalization, and hybridization are also examined.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
The future of public sector audit The future of public sector audit ge Johnsen, Oslo Business School, Oslo Metropolitan University, Norway Kim Klarskov Jeppesen, Copenhagen Business School, Denmark Jarmo Vakkuri, Faculty of Management and Business. Tampere University 4th Nordic State Audit Seminar 12th May 2022, Torshavn, The Faroe Islands
Customer Auditing of CloudSigma to Ensure Compliance with Regulations Introduction Observations Recurrent accounting scandals (!) Enron, Worldcom, Carillion, Wirecard Corruption Complex regulation and organization of the private and public sector auditors => Mending current arrangement or major rethink (?) RQ: How can audit organizations in the public and private sectors be organized for improving public value? Introduction Theoretical framework - Alternatives - Conclusions 2
Theoretical framework: Audit as a public or private good Professional service Audit market concentration (B8->B6->B4) Complex organization of public sector auditors Audit as a private good: The shareholder model The current shareholder The potential shareholder Audit as a public good: The stakeholder model The owner The manager The employee The government The public Introduction Theoretical framework - Alternatives - Conclusions 3
Interesting developments Globalisation -> International audit and governance collaboration Digitalisation -> Scale (big data) and data analytics Hybridisation -> Public sector reforms, privatisation and nationalisation transcend public private sector divide Introduction - Theoretical framework - Methods - Results - Conclusions 4
Incremental alternatives: Mending current arrangement Do nothing (one auditor, often from one of the big auditors) More auditors (joint audits) More rotation, time limitation Split audit and advice More inspection Partial deregulation: mandatory audit only for big firms (Public sector audit as before ) Introduction Theoretical framework - Alternatives - Conclusions 5
Alternative ways for organising the audit Audit paid by auditee Audit as private good - Internal audit - External audit done by banks - External audit as insurance - N/A (because it is not in the public interest to pay for a private good) Audit as public good - External audit as now Audit paid by the public - External audit in the public sector done by auditors employed/paid by the public - External audit in the private sector done by auditors employed/paid by the public - External audits as analytics done by statistical agencies - Joint hybrid audits between private audit firms and public sector auditors (e.g. SAIs) Audit paid by both auditee and the public - External audit relying on the work of internal audit Introduction - Theoretical framework - Methods - Results - Conclusions 6
Discussion: The future of audit (?) What Happens if Your Company is Audited? - Accounting for Small Business | Easier Accounting Mending current arrangements? Voluntary audit? A public audit (only)? Hybrid audit? Super supreme audit institutions? Introduction Theoretical framework - Alternatives - Conclusions 7
