Monitoring Quality of Public Sector Audit

The question of who audits the auditors is fundamental to the credibility of public sector oversight. While audit institutions hold government departments and agencies to account for their use of public resources, they must also demonstrate that their own work meets the highest professional standards. Quality assurance in public sector auditing encompasses the methodologies used, the competence of audit staff, the rigour of evidence gathering and analysis, and the clarity and usefulness of audit reports. Without robust quality monitoring, the very institutions charged with ensuring accountability risk undermining public confidence in the oversight system.

Quality monitoring in public sector audit operates at multiple levels. Internally, audit institutions implement quality control procedures including supervisory review of audit work, peer review programmes, and adherence to professional standards such as the International Standards of Supreme Audit Institutions (ISSAI). Externally, parliamentary oversight committees play a crucial role in scrutinising the work of audit institutions, evaluating whether audit findings are relevant, timely, and actionable, and holding audit leaders accountable for the performance of their organisations. The interaction between internal quality assurance and external oversight creates a comprehensive accountability framework.

The OECD Auditors Alliance has facilitated important discussions on quality monitoring, bringing together practitioners from audit institutions and parliamentary committee staff to share experiences and develop common approaches. These discussions have revealed significant variation in how quality is monitored across member countries, with some countries operating formal peer review systems involving international audit institutions, while others rely primarily on internal quality assurance processes. The Alliance has worked to identify good practices and promote their adoption across its membership.

Emerging challenges to audit quality include the rapid pace of technological change, which requires continuous updating of audit methodologies and staff competencies; increasing complexity of government operations, which demands deeper subject-matter expertise; and growing expectations from parliaments and the public for more timely and accessible audit reporting. Addressing these challenges requires sustained investment in professional development, methodology innovation, and stakeholder engagement.