Value for money and the rule of law: the (new) performance audit in Sweden

Abstract

PurposeThis paper aims to develop a classification scheme of different types of value for money (VFM) audits with different degrees of compliance audit, and to classify the performance audits carried out by the Swedish National Audit Office (SNAO) during its first six years as an independent state audit organization reporting to parliament.Design/methodology/approachThe empirical data were gathered from all of the 150 audit reports published by the SNAO from its establishment in 2003 to the end of 2008. Seminars were arranged to discuss the classifications for validation.FindingsThe focus on traditional VFM audits (the “Three Es”) is unusual. Most audits carried out by the SNAO combine different types of extended VFM audits with compliance audit. On the one hand, they audit how the government and/or central agencies fulfil their mandates (from good to bad). On the other, they audit how the government and/or central agencies adhere to legislation, rules and policies (right or wrong). In some cases, the SNAO equates compliance audit with performance audit.Practical implicationsThe authors have verbalised and visualised performance audit activities of interest not only to state auditors, but also to external stakeholders. One practical implication is that the Swedish national audit committee has conducted an evaluation of the SNAO that is partly based on the national report of this study, and has proposed a stronger focus on the Three Es.Originality/valueThe study addresses a new approach in terms of a classification scheme for performance audits, consisting of eight types of VFM audits and three degrees of compliance audit, and creating 24 possible combinations.

Auditee Strategies: An Investigation of Auditees’ Reactions to the Norwegian State Audit Institution’s Performance Audits

“…The ministers and their ministries are formally held to account for results, for compliance or for good management practices in the SAI's reports (Aucoin et al 2000;Behn 2001;Grönlund et al 2011;Pollitt et al 1999a). They can be assessed based on whether the intent is compliance with rules and regulations or ameliorative operations and results (Bovens 2007).…”

Performance audit and the importance of the public debate

“…These compliance oriented reports did not exclusively focus on compliance (Grönlund et al, 2011;. Almost all of them also concerned deficiencies in the design of objectives, performance requirements and performance indicators.…”

Näkökulmia tilintarkastukseen ja arviointiin

“…Tärkeistä tehtävistä huolimatta vaikuttavuustarkastuksia tehdään kansainvälisesti ja kansallisesti yllättävän vähän verrattuna tilintarkastuksien ja laillisuustarkastuksien määrään (ks. Funnell 1998;Jacobs 1998;Radcliff 1998;Guthrie & Parker 1999;Pollitt 2003;Lonsdale 2008;Skaerbak 2009;Grönlund, Svärdsten & Öhman 2011). Vaikuttavuustarkastuksien vähäinen lukumäärä vaikuttaa sekä julkisen sektorin läpinäkyvyyteen että vaikuttavuuden kehittämiskykyyn.…”