Systematic Literature Review: Public Sector Auditing and Performance Auditing in Enhancing Accountability and Organizational Performance
Abstract
Public sector auditing and performance auditing have become important instruments for ensuring accountability, transparency, and the effective use of public funds. However, their practices and impacts still vary across different national and organizational contexts. This Systematic Literature Review (SLR) aims to identify, analyze, and synthesize findings from 33 scientific articles related to public sector auditing and performance auditing, with a focus on identifying similarities, differences, and existing research gaps. This study follows the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) protocol. The literature search was conducted in the Scopus database using the keywords “Public Sector Audit” OR “Performance Audit” in the article titles. From an initial 1,126 articles, a step-by-step screening process was carried out, resulting in 33 articles that met the inclusion criteria. The findings indicate that performance audits and internal audits positively influence the performance of both public and private organizations through increased transparency, accountability, and effectiveness in resource management. There has been a shift in focus from compliance auditing toward performance auditing based on the 3E principles (economy, efficiency, effectiveness) and further toward 5E (adding equity and environment). Audit technologies such as CAATs, AI, and big data have been shown to enhance audit effectiveness when supported by auditor competence and high-quality systems. Harmonization of standards with ISSAI also strengthens the credibility of performance audits across countries. Public sector auditing and performance auditing significantly contribute to improving organizational performance and creating public value. However, their effectiveness largely depends on the follow-up system for audit recommendations, auditor independence, human resource competence, and technological support.
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