Performance auditing in the public sector: A systematic literature review and future research avenues

Abstract

Performance auditing (PA) has undergone relevant evolutions in recent decades, attracting considerable interest from academics and practitioners alike, in terms of its emergence, evolution, transformation, and outcomes in various international contexts. Through a systematic review of the literature published over the past five decades, totaling 125 papers, this study maps the existing knowledge on PA and recommends avenues for future research. Based on the analysis of the selected articles, the paper identifies and discusses the main themes emerging from the literature, including the scope and evolution of PA; the two faces of PA (accountability and performance improvement); the tensions and contradictions of influence and independence of PA; and unintended consequences and conflicts of PA. Considering the synthesis of the literature and current issues in public administration, the paper highlights themes that warrant further research, including the PA implications of digitalization and emerging technologies, the potential for widening accountability, PA's connections with media, and the relevance of PA in a risk management perspective. The paper also offers insights into the potential of international and comparative approaches to research on PA issues.

Sustainable Community Development as a Main Motive of Good Governance System and Ethical Presentation in a Developing Nation

“…These findings align with Felício et al (2021), who asserted that honesty and dignity are paramount at the public sector level to determine performance and a nation's development. Likewise, Rana et al (2022) linked the negative use of powers at the public sector level with low productivity and poor conditions in a country.…”

The future of public audit

“…From this broad theorization, the papers do not show disrupting messages, but rather a confirmation that the challenges for auditors tend to be the same, and in spite of globalization and digitalization, very much is context‐bounded and culturally shaped. For example, this is illustrated through the “what and why” issues of public audit that reviewed literature on performance audit (Rana et al., 2022) and through an international comparison of SAIs (Cordery and Hay, 2022). This was also the case for the study by Themsen and Skærbæk (2022) who highlight the importance of looking at the context where audit takes place and the meaning in terms of the “what and why” attached to the roles and work of auditors, despite importantly highlighting a move away from an “audit society” and shift towards an “innovation society.” Also, context and culture remain important in considering the “when and how” of the future of public audit in terms of digitalization and the relationships between autonomy and control (Aquino, Lino and, Azevedo, 2022).…”

“…In their review of performance auditing literature, Rana et al. (2022) illustrate how for performance audit the “what and why” issues of public audit still remain far from settled and decided upon, opening up new challenges for scholars and practitioners alike. Their review reveals the continuous evolution and wide variety of performance auditing scope over time and in different contexts, which illustrate its malleable nature.…”

“…Over a quarter century ago, Lapsley (1995) reported through a special issue of Financial Accountability and Management (FAM) on the problems and perspectives of audit and accountability in the public sector. Since then, public auditors, their independence, and relevance continue to be persistent and challenging issues in public audit (Johnsen, 2019; Rana et al., 2022) and are pivotal for trust in public finance and expenditure in an accountable and democratic system. Public audit has faced increased criticism for not highlighting the financial sustainability and performance problems in governments and public organizations, and for private sector failures by firms that deliver public services (Murphy et al., 2019).…”

Audit report construction: public sector organisation perspectives within a non-financial information context

“…Researchers continue to call for field research to examine the audit processes within various new audit contexts, including NFI (Adams et al, 2014;O'Dwyer et al, 2011;Power, 2003a, b). Specifically in the public sector context, Manes-Rossi et al (2020) and Rana et al (2021) call for more research into NFI report formats, how they are prepared and how understandable are they by diverse stakeholders.…”