424
Views
3
CrossRef citations to date
0
Altmetric
Research Articles

What are the required qualities of auditors in the public sector?

ORCID Icon, ORCID Icon & ORCID Icon

References

  • Abbott, L. J., Parker, S., & Peters, G. F. (2004). Audit committee characteristics and restatements. Auditing: A Journal of Practice & Theory, 23(1), 69–87. https://doi.org/10.2308/aud.2004.23.1.69
  • Ballantine, J., Forker, J., & Greenwood, M. (2007). Earnings management in English NHS hospital trusts. Financial Accountability & Management, 23(4), 421–440. https://doi.org/10.1111/j.1468-0408.2007.00436.x
  • Ballantine, J., Forker, J., & Greenwood, M. (2008). Public and private sector auditors and accruals quality in English NHS hospital trusts. The British Accounting Review, 40(1), 28–47. https://doi.org/10.1016/j.bar.2007.09.002
  • Balsam, S., Krishnan, J., & Yang, J. S. (2003). Auditor industry specialization and earnings quality. Auditing: A Journal of Practice & Theory, 22(2), 71–97. https://doi.org/10.2308/aud.2003.22.2.71
  • Becker, C. L., Defond, M. L., Jiambalvo, J., & Subramanyam, K. M. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research, 15(1), 1–24. https://doi.org/10.1111/j.1911-3846.1998.tb00547.x
  • Bedard, J., Chtourou, S. M., & Courteau, L. (2004). The effect of audit committee expertise, independence, and activity on aggressive earnings management. Auditing: A Journal of Practice & Theory, 23(2), 13–35. https://doi.org/10.2308/aud.2004.23.2.13
  • Benitez, J., Henseler, J., Castillo, A., & Schuberth, F. (2020). How to perform and report an impactful analysis using partial least squares: Guidelines for confirmatory and explanatory IS research. Information and Management, 57(2), https://doi.org/10.1016/j.im.2019.05.003
  • Cameran, M., Prencipe, A., & Trombetta, M. (2016). Mandatory audit firm rotation and audit quality. European Accounting Review, 25(1), 35–58. http://doi.org/10.1080/09638180.2014.921446
  • Caruana, J., & Kowalczyk, M. (2020). The quest for audit quality in the public sector. Accounting in Europe. https://doi.org/10.1080/17449480.2020.1757731.
  • Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G. A. Marcoulides (Ed.), Research methods for business research (pp. 295–336). Lawrence Erlbaum Associates.
  • Corte dei Conti. (2009). Relazione della corte dei conti, sezione centrale di controllo sulla gestione delle Amministrazioni dello stato.
  • Cortesi, A., Tettamanzi, P., & Corno, F. (2009). Empirical evidence on internal control systems and corporate governance in Italy. Journal of Management and Governance, 13(1–2), 75–100. https://doi.org/10.1007/s10997-008-9071-8
  • De Angelo, L. (1981). Auditor independence, ‘low balling’ and disclosure regulation. Journal of Accounting & Economics, 3, 113–127. https://doi.org/10.1016/0165-4101(81)90009-4
  • Dechow, P. M., & Dichev, I. D. (2002). The quality of accruals and earnings: The role of accrual estimation errors. Accounting Review, 77(Suppl. 1), 35–59. https://doi.org/10.2308/accr.2002.77.s-1.35
  • Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. The Accounting Review, 70(2), 193–225.
  • DeZoort, F. T., Hermanson, D. R., Archambeault, D. S., & Reed, S. A. (2002). Audit committee effectiveness: A synthesis of the empirical audit committee literature. Journal of Accounting Literature, 21, 38–75.
  • Dillman, D. A. (2000). Mail and internet surveys: The tailored design method. John Wiley & Sons.
  • Ellwood, S., & Garcia-Lacalle, J. (2015). The removal of a specialist oversight body for local public audit: Insights from the health service in England. Financial Accountability &Management, 31(2), 219–242. https://doi.org/10.1111/faam.12054
  • Ellwood, S., & Garcia-Lacalle, J. (2016). Examining audit committees in the corporate governance of public bodies. Public Management Review, 18(8), 1138–1162. https://doi.org/10.1080/14719037.2015.1088566
  • Ericsonn, K. A., & Lehmann, A. C. (1996). Expert and exceptional performance: Evidence of a maximal adaptation to task constraints. Annual Review of Psychology, 47, 273–305. https://doi.org/10.1146/annurev.psych.47.1.273
  • Francis, J. R. (2011). A framework for understanding and researching audit quality. Auditing: A Journal of Practice & Theory, 30(2), 125–152. https://doi.org/10.2308/ajpt-50006
  • Greenwood, M., & Zhan, R. (2019). Audit adjustments and public sector audit quality. Abacus, 55(3), 511–534. https://doi.org/10.1111/abac.12165
  • Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd edn). Sage.
  • Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
  • Hay, D., & Cordery, C. (2018). The value of public sector audit: Literature and history. Journal of Accounting Literature, 40, 1–15. https://doi.org/10.1016/j.acclit.2017.11.001
  • Healy, P. M., & Wahlen, J. M. (1999). A review of the earnings management literature and its implications for standard setting. Journal of Accounting Horizons, 13, 365–383. https://doi.org/10.2308/acch.1999.13.4.365
  • Hodges, R. (2018). How might harmonization influence the future prevalence of public sector creative accounting? Tékhne, 16, 3–14. https://doi.org/10.2478/tekhne-2019-0001
  • Hyndman, N., & Liguori, M. (2016). Public sector reforms: Changing contours on an NPM landscape. Financial Accountability & Management, 32(1), 5–32. https://doi.org/10.1111/faam.12078
  • Hyndman, N., Liguori, M., Meyer, R. E., Polzer, T., Rota, S., & Seiwald, J. (2014). The translation and sedimentation of accounting reforms. A comparison of the UK. Austrian and Italian Experiences. Critical Perspectives on Accounting, 25(4-5), 388–408. https://doi.org/10.1016/j.cpa.2013.05.008
  • Ibrahim, S., Noikokyris, E., Fabiano, G., & Favato, G. (2019). Manipulation of profits in Italian publicly-funded healthcare trusts. Public Money & Management, 39(6), 428–435. https://doi.org/10.1080/09540962.2019.1578539
  • Ittonen, K., Johnstone, K., & Myllymäki, M. R. (2015). Audit partner public-client specialisation and client abnormal accruals. European Accounting Review, 24(3), 607–633. https://doi.org/10.1080/09638180.2014.906315
  • Jensen, M., & Meckling, W. (1976). Theory of firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360. https://doi.org/10.1007/978-94-009-9257-3_8
  • Jones, J. J. (1991). Earnings management during import relief investigation. Journal of Accounting Research, 29(2), 193–228.
  • Jones, M. J., & Melis, A. (2020). The continuity of the board of statutory auditors across social, economic and political institutional changes. European Accounting Review, https://doi.org/10.1080/09638180.2020.1761850
  • Jones, R., & Pendlebury, M. (2010). Public sector accounting (6th edn). Pearson Education.
  • Kalbers, L. P., & Fogarty, T. J. (1993). Audit committee effectiveness: An empirical investigation of the contribution of power. Auditing A Journal of Practice & Theory, 12, 24–49.
  • Kalbers, L. P., & Fogarty, T. J. (1998). Organizational and economic explanations of audit committee oversight. Journal of Managerial Issues, 10(2), 129–150.
  • Kent, P., Routledge, J., & Stewart, J. (2010). Innate and discretionary accruals quality and corporate governance. Accounting & Finance, 50(1), 171–195. https://doi.org/10.1111/j.1467-629X.2009.00321.x
  • Klein, A. (2002). Audit committee, board of director characteristics and earnings management. Journal of Accounting & Economics, 33(3), 375–400. https://doi.org/10.1016/S0165-4101(02)00059-9
  • Lapsley, I., & Pallot, J. (2000). Public sector capital: Policy reforms and accounting mutation. In E. Caperchione, & R. Mussari (Eds.), Comparative issues in local government accounting (pp. 35–52). Springer.
  • Leone, A. J., & Van Horn, L. (2005). How do nonprofit hospitals manage earnings? Journal of Health Economics, 24(2), 815–37. https://doi.org/10.1016/j.jhealeco.2005.01.006
  • Manes Rossi, F., Brusca, I., & Condor, V. (2020). In the pursuit of harmonization: Comparing the audit systems of european local governments. Public Money & Management, https://doi.org/10.1080/09540962.2020.1772549
  • Mangena, M., & Pike, R. (2005). The effect of audit committee shareholding, financial expertise and size on interim financial disclosures. Accounting & Business Research, 35(4), 327–349. https://doi.org/10.1080/00014788.2005.9729998
  • Mariani, L., Tettamanzi, P., & Corno, F. (2010). External auditing vs statutory committee auditing: The Italian evidence. International Journal of Auditing, 14(1), 25–40. https://doi.org/10.1111/j.1099-1123.2009.00401.x
  • Melis, A. (2004). On the role of the board of statutory auditors in Italian listed companies. Corporate Governance—An International Review, 12(1), 74–84. https://doi.org/10.1111/j.1467-8683.2004.00344.x
  • OECD. (2019). OECD corporate governance factbook 2019. http://www.oecd.org/corporate/Corporate-Governance-Factbook.pdf.
  • Pina, V., Arcas, M. J., & Martí, C. (2012). Accruals and ‘accounting numbers management’ in UK executive agencies. Public Money & Management, 32(4), 273–280. https://doi.org/10.1080/09540962.2012.691306
  • Putnam, R. D., Leonardi, R., & Nanetti, R. Y. (1993). Making democracy work: Civic traditions in modern Italy. Princeton University Press.
  • Rizzotti, D., & Greco, A. M. (2013). Determinants of board of statutory auditor and internal control committee diligence: A comparison between audit committee and the corresponding Italian committees. The International Journal of Accounting, 48(1), 84–110. https://doi.org/10.1016/j.intacc.2013.01.007
  • Torbica, A., & Fattore, G. (2005). The ‘essential levels of care’ in Italy: When being explicit serves the devolution of powers. European Journal of Health Economics, 6(Suppl. 1), 46–52. https://doi.org/10.1007/s10198-005-0318-x
  • Vafeas, N. (2005). Audit committees, boards, and the quality of reported earnings. Contemporary Accounting Research, 22(4), 1093–1122. https://doi.org/10.1506/1QYN-2RFQ-FKYX-XP84
  • van Brenk, H., Renes, R., & Trompeter, G. M. (2020). Auditing in the public interest: Reforming the profession by building on the strengths of the existing accounting firms. Critical Perspectives on Accounting, https://doi.org/10.1016/j.cpa.2020.102184
  • Waterman, R. W., & Meier, K. J. (1998). Principal-agent models: An expansion? Journal of Public Administration Research & Theory, 8(2), 173–202. https://doi.org/10.1093/oxfordjournals.jpart.a024377
  • West, J. P., & Berman, E. M. (2003). Audit committees and accountability in local government: A national survey. International Journal of Public Administration, 26(4), 329–362. https://doi.org/10.1081/PAD-120019224
  • Xie, B., Davidson, W. N., & DaDalt, P. J. (2003). Earnings management and corporate governance: The roles of the board and the audit committee. Journal of Corporate Finance, 9(3), 295–316. https://doi.org/10.1016/S0929-1199(02)00006-8

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.