Efficiency, economy and effectiveness—but what about ethics? Supreme audit institutions at a critical juncture

Abstract

Ethics is increasingly recognized as one of several important dimensions of performance. Yet, performance audit, or value-for-money audit, as conducted by supreme audit institutions (SAIs), does not typically include this dimension. Instead, the focus is on the classical ‘three Es’ (efficiency, economy and effectiveness). The reluctance to address issues of ethical misconduct has taken the audit practice of SAIs to a critical juncture, where the legitimacy of these audits ultimately is at stake. This paper explains why SAIs need to add a fourth ‘E’— ethical audit. Possible implications are discussed.

Keywords:

• Ethical audit
• INTOSAI
• performance audit
• supreme audit institutions
• value-for-money audit

Acknowlegdement

An earlier version of this paper was presented at the EIASM conference in Milan.

Additional information

Notes on contributors

Louise Bringselius

Louise Bringselius is an Associate Professor, Lund University, Sweden.