Home   >   CSC-OpenAccess Library   >    Manuscript Information
Effectiveness of Auditing in Public Organizations: The Case of Ministry of Environment and Tourism, Khomas Region, Namibia
Rajesh ARORA, Abraham Pendapala ASHIPALA, Martin Mabeifam UJAKPA, Parcidio ANDRÉ, Iyaloo Ndevahoma, Jacob DAPILAH
Pages - 23 - 31     |    Revised - 27-01-2021     |    Published - 01-04-2021
Volume - 0   Issue - 0    |    Publication Date -   Table of Contents
MORE INFORMATION
KEYWORDS
Audit, Public Sector Organization, Effectiveness, Audit Scope.
ABSTRACT
Public sector auditing strengthens public governance by providing responsible governance in institutions, protecting core values of the public sector entities, ensuring managers and officials conduct public business transparently, fairly, and honestly, as well as with equity and integrity. Notwithstanding this role of auditing in organizations, it seems that some organization, have failed to deliver on the purposes for which they were established and this could be as a result of irresponsible and ineffective management of public resources. Considering this and the little available published literature on the effectiveness of auditing in public organizations in Namibia, this study examined the effectiveness of auditing in public organizations in Namibia. Using a quantitative method to collect and analyze data from 21 participants in the Ministry of Environment & Tourism (Khomas Region), the study found that internal auditing function is not fully independent due to the absence of an audit committee. The study also established that an organizations independence, sufficient funding, and unrestricted access are critical measures to ensure effectiveness of auditing. Also competent staffs, formal mandate, professional audit standards, competent leadership, stakeholders support and objective staffs are important elements that ensure that audit functions aid public sector entities to achieve their objectives. It is recommended that the State Finance Act 31 (1991) be amended to make provision in the current reporting structures of the ministries, to include audit committees. Furthermore, regulations and policy framework to guide the establishment of audit committees should be formulated. Since this study focused only on one ministry, generalization of the study results should be done with caution. Future studies should include more public organizations and if possible, attempt to compare auditing in public and private sectors.
Abutaber, T. (2016). The Role of Internal Audit function in the Public Sector. Managerial Auditing Journal. 5(1).
Abutaber, T. (2016). The Role of Internal Audit functions in the Public Sector. Managerial Auditing Journal, 5(1). https://www.researchgate.net/publication/323279418_The_Role_of_Internal_Audit_function_in_the_Public_Sector.
Agyemang, J. K. (2020). The Relationship Between Audit Committee Characteristics and Financial Performance of Listed Banks in Ghana. https://core.ac.uk/download/pdf/327151442.pdf
Basu, S.K. (2009). Fundamentals of Auditing. Dorling Kindersley Pvt. Ltd. India.
Boynton, W. C., & Johnson, R. N. (2006). Modern auditing: Assurance services and the integrity of financial Reporting. John Wiley & Sons, Inc. United State of America.
Davies, M., & Aston, J. (2011). Auditing Fundamentals. Pearson Education Limited. Harlow. England.
Drogalas, G., & Siopi, S. (2017). Risk management and internal audit: Evidence from Greece. Risk governance & control: financial markets & institutions, 7(3), 104-110. https://doi.org/10.22495/rgcv7i3p10.
GayeT. T. and Colley L. (2020). An investigation of Audit Expectation Gap in the Public Sector in Sub-Saharan Africa: The Case of The Gambia[Master Thesis, Kristianstad University].
Goodson, S.G., Mory, K.J., Jacques R., and Lapointe, J. K. (2012). Supplementary guidance: The role of auditing in public sector governance, 2nd Edition. Institute of Internal Auditors. United State of America.
Hanoon, N. R., Rapani, A. H. N. & Khalid, A. A. (2020). The Relationship between Audit Committee and Financial Performance: Evidence from Iraq. International Journal of Management, 11(11), Pp 564-585. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=11
Hawley, J. P., & Williams, A.T. (1996). Corporate Governance in the United States: The Rise of Fiduciary Capitalism. School of Economics and Business Administration, California: St Mary's College. United State of America.
Hayes, R. Dassen, R. Schilder, A. & Wallage, P. (2005). Principles of Auditing: An Introduction to International Standards on Auditing, 2nd ed., Prentice Hall.
Julkaisuja, V. Y., & Ittonen, K. (2010). A Theoretical examination of the role. Vaasa, Finland: University of Vaasa.
Krambia-Kapardis, M. (2002, September). A fraud detection model: A must for auditors. Journal of Financial Regulation and Compliance, 10(3), 266-278.
Lirnperg, T. (1932). Theory of Inspired Confidence. University of Amsterdam. Netherlands.
Marx, B., Van der Watt, A., & Bourne, P. (2014). Dynamic auditing - A student edition, 11th Edition. LexisNexis. Johannesburg. South Africa.
Mazumdar, F. (2020). Effective Strategies Nonprofit US Leaders use to Assess and Mitigate Occupational Fraud.
Meckling, W. H., & Jensen, M. C. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Harvard University Press. United States of America.
Moshi, B. (2020). Credit Risk Management Techniques for Reduction of Non-Performing Loans among Microfinance Institutions: A Case of Selected Microfinance Institutions in Dar Es Salaam i (Doctoral dissertation, Mzumbe University).
NamCode (2014): The Corporate Governance Code for Namibia.
Nerantzidis, M., Pazarskis, M., Drogalas, G. and Galanis, S. (2020), "Internal auditing in the public sector: a systematic literature review and future research agenda", Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JPBAFM-02-2020-0015.
Ogoun, S., & Odogu, T. K. Z. (2020). The Adequacy of the Auditor’s Report in the Anti-Graft Age: A Forensic View. iBusiness, 12(1), 13-32.
Olaoye S. A., Aguguom T. A., Safiriyu S. E. and Abiola T. (2019). INDEPENDENCE OF STATUTORY AUDITOR AND RELIABILITY OF FINANCIAL STATEMENTS: EVIDENCE FROM LISTED MANUFACTURING COMPANIES IN NIGERIAN. International Journal of Asian Social Science, 9(8), 436-449. https://doi.org/10.18488/journal.1.2019.98.436.449.
Ololade, B. M., Salawu, M. K., & Adekanmi, A. D. (2020). E-Fraud in Nigerian Banks: Why and How?. Journal of Financial Risk Management, 9(3), 211-228.
Phan, T., Lai, L., Le, T., & Tran, D. (2020). The impact of audit quality on performance of enterprises listed on Hanoi Stock Exchange. Management Science Letters, 10(1), 217-224.
Prawitt, D. F, Smith, J. L & Wood, D. A. (2006). Internal Audit Function characteristics and earnings management. Working paper, Brigham Young University. United States of America.
Raimo, N., Vitolla, F., Marrone, A., & Rubino, M. (2020). Do audit committee attributes influence integrated reporting quality? An agency theory viewpoint. Business Strategy and the Environment.
Repubic of Namibia (1991). State Finance Act 31 of 1991: Section 26. https://laws.parliament.na/cms_documents/state-finance-ca97b38a62.pdf.
Turetken, O., Jethefer, S. and Ozkan, B. (2019). Internal audit effectiveness: operationalization and influencing factors. Managerial Auditing Journal, 35(2), 238-271. https://doi.org/10.1108/MAJ-08-2018-1980.
Professor Rajesh ARORA
Vice Chancellor, Apex University, Arunachal Pradesh, 791102 - India
Mr. Abraham Pendapala ASHIPALA
Student, Business Administration Faculty, International University of Management, Windhoek, 9000 - Namibia
abrahampendapala@gmail.com
Dr. Martin Mabeifam UJAKPA
Senior Lecturer and Faculty Dean, Information and Communication Technology Faculty, International University of Management, Windhoek, 9000 - Namibia
Mr. Parcidio ANDRÉ
Student, Information and Communication Technology Faculty, International University of Management, Windhoek, 9000 - Namibia
Miss Iyaloo Ndevahoma
Student, Information and Communication Technology Faculty, International University of Management, Windhoek, 9000 - Namibia
Mr. Jacob DAPILAH
Lecturer, Faculty of IT Business, Ghana Communication Technology University, Takoradi Campus - Ghana


CREATE AUTHOR ACCOUNT
 
LAUNCH YOUR SPECIAL ISSUE
View all special issues >>
 
PUBLICATION VIDEOS