Evaluation of performance auditing in Indonesia: a critical systemic approach to addressing public accountability

Author: Agus Bambang Irawan

Irawan, Agus Bambang, 2015 Evaluation of performance auditing in Indonesia: a critical systemic approach to addressing public accountability, Flinders University, School of Social and Policy Studies

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Abstract

The research explores the concept of performance auditing and examines the current practice of performance auditing as conducted by the Indonesian Supreme Audit Institution in the Indonesian public sector, in order to reframe how performance auditing and public accountability should be improved. It also concentrates on the relationship between the Supreme Audit Institution and the Parliament, in particular the Public Accounts Committee in regard to performance auditing activities. The thesis strives to make a contribution to the way in which performance auditing influences public accountability, especially after the financial reform that occurred in the 2000’s.

This evaluation research uses a complementary method to address performance auditing in terms of environmental sustainability, corruption and fraud issues. Furthermore, the profile of performance auditors and current practice of performance auditing were also examined. The thesis examines performance auditing activities from the perspective of auditors and stakeholders. The research participants comprise members of Parliament, members of the Indonesian Supreme Audit Institution, heads of government institutions and academia, journalists and auditors.

The research shows that the current practice or performance auditing at the Indonesian Supreme Audit Institution require a new approach and strategy in order to promote better accountability of government and to avoid a misdirected system on performance auditing activity. Otherwise, performance auditing will continue as a routine activity and will have no impact on the improvement of the complex problems in the Indonesian public sector. Moreover, the relationship between the Parliament and the Supreme Audit Institution need to be improved in regard to the process of follow-up performance auditing recommendations.

This thesis aims to makes a contribution to the following matters: (1) examining the theoretical perspective of performance auditing in terms of environmental and fraud aspect; (2) examining the auditors’ profile of performance auditing; (3) reframing performance auditing practice conducted by the Indonesian Supreme Audit Institution; and (4) strengthening the institutional capacity of the Parliament, particularly the Indonesian Public Accounts Committee in relationship with the work of the Supreme Audit Institution.

Keywords: Performance Auditing, Public Accountability, Critical Systems Thinking, Supreme Audit Institution, Evaluation

Subject: Sociology thesis

Thesis type: Doctor of Philosophy
Completed: 2015
School: School of Social and Policy Studies
Supervisor: Associate Professor Janet McIntyre-Mills