Abstract:
The objective of this study was to present a policy framework that may strengthen the impact of public sector audit effectiveness in African countries, based on the principles of good governance theory, towards promoting accountability and transparency. The objective was achieved by obtaining an understanding of the factors influencing the effectiveness of public sector auditing from experts (senior management staff of supreme audit institutions [SAIs]) in three African countries, namely Ghana, Sierra Leone and South Africa.
To achieve the research objective, a constructivist and interpretivist epistemological approach were adopted, that included interactive qualitative analysis (IQA) focus groups. Focus Group 1 consisted of senior management staff from SAI in Sierra Leone, Focus Group 2 consisted of senior management staff from SAI in Ghana, and Focus Group 3 consisted of senior management staff from SAI in South Africa. Purposive sampling was applied to select 36 senior management staff as participants, who were experts in public sector auditing, to conduct the respective focus groups. Following the participants’ clarification of factors (-affinities), the relationship between the affinities was established, and the frequency of each relationship was determined through the pareto protocol. The focus groups were applied from where themes or categories were established and blended with a literature review to develop a framework which was further validated by stakeholders through interviews in selected countries in Africa.
A total of 33 affinities and 153 sub-affinities were identified by the three focus groups which resulted in six themes or categories.The six themes are financial viability, auditors ethics, auditee corporate governance,audit tools and technology support, and legislative mandate. This culminated in the development of a draft policy framework recommendation. The policy framework, consisting of operational guidelines and suggested actions for the effectiveness of public sector auditing in promoting accountability and transparency was developed based on the findings of the study. Furthermore, the principles and operations guidelines enclosed in the policy framework were designed to aid key stakeholders in improving and advancing the effectiveness of public sector auditing, by promoting accountability and transparency in Africa.
This study is unique in that it combines a comprehensive, narrative conceptual policy framework with a graphical policy framework that illustrates interrelationships generated through focus group discussions, IQA data, and literature that is not found in other studies. Accordingly, the
effectiveness of public sector auditing on accountability and transparency, as principles of good governance, particularly in developing countries, have been overlooked as identified in the literature. Issues relating to good governance and security are universal aspirations and a shared mission of all SAIs. As a result, the empirical segment of this study provides distinctive perspectives to SAIs, Auditors-General, legislatures, executive governments, citizens, and other stakeholders. The implication for further study is that since there is no ripe experience from which to draw lessons, research on ideas related to effective public sector auditing, supporting, and serving public sector governance should be expanded. In practice, audit theories must be enriched by investigating their mechanisms, fundamental substance, path of realisation, and evaluation methodologies. Academics may be interested in the focus group and IQA methodology, as it has the potential to impact future study designs
