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(2021). Public-sector performance auditing in a political hegemony: A case study of Indonesia

Sumiyana, Sumiyana and Hendrian, Hendrian and Jayasinghe, Kelum and Wijethilake, Chaminda (2021) '(2021). Public-sector performance auditing in a political hegemony: A case study of Indonesia.' Financial Accountability and Management. ISSN 0267-4424

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Abstract

Debate over public-sector auditors’ independence has focused largely on Western developed democracies. Drawing on Gramsci’s theory of hegemony, this study explores how the political hegemony and ideology influence public-sector auditors’ independence and audit quality in a developing country, Indonesia. In contrast to the widely accepted belief that public-sector auditors’ independence is guaranteed by the legislature, this study argues that active intervention by the political hegemony undermines this independence and thus impairs audit quality. The study’s document analysis and in-depth interviews conducted with technical controllers, supervisors and investigators at the Supreme Audit Institution in Indonesia reveal that the political hegemony and ideology influence auditors’ cognition. This study enhances understanding of how the political hegemony, supported by the imperium, ruling-class psychology and spheres of influence, substantially erodes auditors’ constitutive role, giving rise to concerns about value for taxpayers’ money and public-sector effectiveness and efficiency.

Item Type: Article
Uncontrolled Keywords: auditor independence; emerging economies; political hegemony; public financial management; public-sector auditing
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Accounting Centre
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 07 Jun 2021 09:29
Last Modified: 23 Sep 2022 19:45
URI: http://repository.essex.ac.uk/id/eprint/30268

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