Title: THE ROLE OF GOVERNMENT AUDITING IN CURBING CORRUPTION
Abstract: ABSTRACT. This paper discusses the major trends in scholarship about the governance function of auditing, the role of government auditing in identifying and inhibiting corruption, the relevant function that government auditing has in the public sphere, and the decisive role of CSOs in handling corruption in transitional democracies. My analysis complements the growing literature on the discouraging result of government auditing, the consequences of corruption on individual political views and conduct, and the connection between government auditing and corruption control. The findings of this study have implications for the economic effects of government auditing, the function of government auditing in the struggle against corruption, and the supervision and assessment role of government auditing.JEL Codes: D73; H83; M42Keywords: government auditing; corruption control; public sector1. IntroductionCorruption originates from the existence of benefits and imperfect market mechanisms, being the mis employment of public office for personal profit. Corruption cases entail serious breaches of public finance laws and procedures. The solution to fighting against corruption is to remove privileges and fortify government responsibility. Corruption generates a misrepresented public spending structure, misinterpreting the roles of government and market mechanisms. The boost in corruption has deep institutional origins. A government auditing system's basic objective is to monitor the stability of public power. In an area with extreme corruption, there are uneven or unlawful undertakings that are identifiable in government financial accounts and statements. To curb corruption professional agencies first require recognizing corrupt activities. (Liu and Lin, 2012) Corruption is significant and expensive in developing economies, being notable in size whether in the form of payoffs given to public servants or bribery from public expenditures. The endogenous character of corruption makes identifying reliable tools for corruption at the macro level challenging. Corruption can have efficiency results through effects on government distributions of commodities and services. The government does not completely forecast the consequences of the losses because of corruption. Altering the character of the organization may have significant ramifications for the degree of corruption. (Olken and Pande, 2012) Corruption implies the misuse of public office for personal profit. Political corruption signifies the participation of elected public officials in corrupt acts, whereas bureaucratic corruption entails unelected civil servants. The continuance of relentless, widespread political corruption in a democracy indicates that numerous electors choose corrupt politicians. Regardless of institutional configuration, corrupt politicians cannot outlast electorally without the backing of electors. (Winters and Weitz-Shapiro, 2013)2. The Governance Function of AuditingGovernment auditing is relevant in uncovering and inhibiting corruption, and leads to enhancing fiscal governance. Autonomous audit agencies (AAAs) stress the economy and strength of public expenditure via performance and value-for-money audits. AAAs are distinct compounds that do not accommodate smoothly in the conventional pattern of dissociation of powers. The performance of AAAs entails comprehension the political economy of government auditing. Particular institutional agreements differ considerably within ideal types, governance settings have more significant impact on organizational performance, and the pattern of external auditing selected by a specific economy does not influence the entire performance of an AAA. (Santiso, 2006) Corruption has generated the downfall of authoritarian regimes in several developing economies. Civil society organizations (CSOs) have a progressively significant function in policy setting up and policy enforcement in new democracies. …
Publication Year: 2014
Publication Date: 2014-09-01
Language: en
Type: article
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Cited By Count: 5
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