Factors Influencing Public Sector Auditees on Implementing Audit Recommendations
Faktor yang Mempengaruhi Auditi dalam Sektor Awam untuk Melaksanakan Syor Audit

Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

anitadain@gmail.com

Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

mohead@ukm.edu.my

Abstract

An increase in audit queries and recurring audit issues every year show that the public sector auditees are taking a longer time or are reluctant to take action on audit recommendations. This study examines the relationship between attitudes and six reference groups namely auditors, follow-up audit, accountability index, Auditors General’s Dashboard, the Audit Committee and the media, with the intention of auditees to implement the audit recommendations. Data are gathered through a survey of 226 Malaysian public sector auditees who have the responsibility to implement audit recommendations. This study shows that the auditees’ attitude, the media, the Audit Committee and the accountability index have influenced the intention of auditees to implement the audit recommendations. However, when the analysis is based on the actual implementation of audit recommendations, by ignoring the element of intention, the study finds slightly different findings. It is found that accountability index, the Audit Committee, Auditors General’s Dashboard, auditors and follow-up audit have an influence on the implementation of the audit recommendations. This study supports the Theory of Reasoned Action and introduces accountability index as a factor that influences auditees’ intention to implement audit recommendations. Also, this study provides implication to the public sector’s authorities of Malaysia in enhancing the role of media, the Audit Committee and accountability index in assisting the public sector to improve service rendered.

Keywords

audit committee; Audit recommendations; auditor; dashboard; media; the rating
https://doi.org/10.17576/pengurusan-2018-51-17

Citation

Dain, N., & Rahmat, M. M. (2017). Factors Influencing Public Sector Auditees on Implementing Audit Recommendations. Jurnal Pengurusan, 51, 195–207. https://doi.org/10.17576/pengurusan-2018-51-17

@article{dain2017factors,
  title={Factors Influencing Public Sector Auditees on Implementing Audit Recommendations},
  author={Dain, Nooranita and Rahmat, Mohd Mohid},
  journal={Jurnal Pengurusan},
 

volume={51},
  number={},
  pages={195—207},
  year={2017},
  doi={https://doi.org/10.17576/pengurusan-2018-51-17},
  publisher={Penerbit UKM},
}

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51 (2017) 195 – 207

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