Auditor ethics and effective auditing in the public sector

Given that ethics is incorporated into the syllabus of accounting university programmes to produce tested professional public accountants and auditors for good governance practices, the recent wave of audit scandals and poor governance assumes a disconnect amongst the demeanour of public accountants and auditors and their fundamental ethical principles. Therefore, the objective of this study was to investigate specific factors that influence public sector audit effectiveness in promoting good governance practices in developing countries. Exploratory focus groups were conducted, utilising the interactive qualitive analysis (IQA) approach. Affinities (also known as factors) were identified by focus group participants from Ghana, Sierra Leone and South Africa, which were combined into themes. The affinities included ethical requirements, ethics, effective audit skills, weakness in accountability, weak citizen participation, lack of commitment and weak moral standards, among others. The auditor ethics policy framework is one of the themes that transpired from the affinities. The study further investigated the influences of fundamental ethical principles and their impact on professional auditors. Through an attribution theory approach, the study proposes a policy framework designed for promoting the impact of public sector auditing on good governance practices in developing countries. In the public sector, good governance practices including accountability and transparency are collective aspirations of major stakeholders. Thus, the empirical segment of this study affords exceptional insights for standards setters, governments, legislatures, citizens, national audit institutions and international communities.