Tag: Featured Articles

The field of performance audit is transitioning from manual retrospective evaluations to real-time and prospective analysis due to the infiltration of technologies such as Big Data, artificial intelligence (AI) and predictive modelling, that is reshaping the efficiency and effectiveness of the audit function. As public institutions increasingly rely on data-driven systems for decision making, the complexity of governance frameworks also increases emphasizing the need for greater scrutiny of such institutions to strengthen transparency, accountability and public trust (Agostino, Lourenco & Jorje, 2025). Digital transformation has proliferated across both public and private sectors, resulting in the generation of enormous volumes of structured and unstructured data that cannot be effectively analysed using conventional audit approaches alone (Basuki, Atarwaman & Layn, 2025). Hence, the need for innovation in performance audit has become more prominent than ever, calling for the development of new tools and techniques to match the dynamics of modern information ecosystem.

Performance auditing is undergoing significant transformation within the international public auditing community. Supreme Audit Institutions (SAIs) are increasingly moving beyond traditional economy-efficiency-effectiveness assessments toward more sophisticated evaluation-oriented approaches based on data analytics, impact assessment, risk analysis, and evidence-based policymaking.

On 29 October 2024, a DANA — a Spanish acronym for an isolated upper-level atmospheric depression forming over the Mediterranean Sea — triggered catastrophic flash flooding across Valencia province, Spain. Within hours, several municipalities received severe rainfall equivalent to an entire year’s precipitation, with peaks of up to 771 litres per square metre, devastating entire towns, leaving thousands stranded, damaging over 60,000 dwellings, destroying more than 130,000 vehicles, and claiming 230 lives.

At the beginning of 2026, the Netherlands Court of Audit published a report on the use of taxpayers’ money to fund both voluntary and obligatory energy saving measures. To carry out the audit we relied heavily on AI to analyse the data and map the overlap between incentives and obligatory measures. In this article we explain how we approached the audit topic and the use we made of AI.

Data has become a central part for the management of complex public programmes. It helps to highlight trends, better understand impacts and identify the need for policy adjustments. For Supreme Audit Institutions (SAIs), the question is therefore no longer whether data analysis should be used in performance audits and evaluations. Rather, the key issue is how data analysis can be planned, prepared and integrated into audit work in such a way that it is driven by the audit questions and contributes to better insights, more convincing recommendations and, ultimately, greater impact.

Supreme Audit Institutions (SAIs) play an essential role in strengthening accountability and transparency within democratic governance systems. As public policy challenges become increasingly complex and interconnected, SAIs are expected not only to provide assurance, but also to contribute more directly to governance improvement and sustainable development outcomes. This expectation is reflected in INTOSAI-P 12, which emphasizes that SAIs should create value and deliver tangible benefits to citizens through stronger accountability, transparency, and public sector performance (INTOSAI, 2013). International discussions have also highlighted the growing need for SAIs to address cross-sectoral and long-term governance challenges, including sustainable development and governance resilience (INTOSAI Journal, 2021).

Over the past several years, the U.S. Government Accountability Office (GAO) estimated fraud facing the U.S. government using rigorous approaches that helped communicate the extent and impact of fraud in federal programs to Congress, the American public and antifraud professionals.

Environmental audits, especially in marine protected areas, face challenges in obtaining reliable evidence as environmental conditions often evolve gradually and are not completely reflected in routine monitoring records. Such challenges may necessitate an approach beyond conventional audit methods.

There is no excerpt because this is a protected post.

To finance government activities and provisions of public goods and services like healthcare, education, infrastructure, defense, and social welfare programs, public funds are used. These funds are usually managed by government entities and are subject to firm rules and oversight to ensure that they are used in most appropriate manner. Good governance, specifically with respect to public funds, discusses the principles and practices that ensure resources are managed appropriately, clearly, and in the best of public interest. Generally, good governance includes the following key principles: 

Good governance depends on the efficient and transparent management of public funds. Financial audits and oversight mechanisms have become increasingly important as public trust is closely tied to financial accountability. These audits and mechanisms have two main purposes: detecting and preventing corruption and mismanagement, as well as promoting transparency and strengthening institutions to deliver tangible benefits to citizens.

Over the past 20–25 years, strategic management has been widely accepted as one of the methods for modernizing public policy. The Strategic Plan of the Chamber of Accounts for 2021–2025, which outlines the Chamber’s long-term development, reflects its vision, mission, core values, outcomes and outputs, and relevant activities. It was developed based on international expert evaluations and recommendations, progressive practices, the “Strategic Management Handbook for Supreme Audit Institutions,” and the principles of INTOSAI P-12 (The Value and Benefits of SAIs – Making a Difference to the Lives of Citizens). The Strategic Plan serves as a roadmap for the Chamber of Accounts’ operations from 2021 to 2025. It aims to strengthen institutional capacity and enhance the role of high-quality auditing in public financial management and oversight, through greater engagement with the parliament, government, and society.

The Audit Board of the Republic of Indonesia (BPK) is constitutionally mandated as an independent body, reflecting the INTOSAI Lima Declaration (1977), which underscores the importance of legal, organizational, and operational independence in ensuring accountability. However, Indonesia’s evolving political and institutional landscape introduces challenges to this mandate. The 2024 presidential transition initiated a new development cycle under Law No. 25/2004, requiring each administration to prepare a National Medium-Term Development Plan (RPJMN) aligned with the Long-Term Development Plan (RPJPN). This process has involved ministerial restructuring, the establishment of new agencies, and the launch of flagship initiatives, such as the free nutritious meal program, all of which reshape governance arrangements and audit priorities.

Effective financial oversight is foundational to good governance. The Supreme State Audit Institution of Albania (KLSH) plays a vital role in safeguarding public resources, promoting accountability, and reinforcing trust in public institutions. This article shares key findings from the institution’s 2023 audit activities, assesses their impact on public sector governance, and identifies best practices applicable across INTOSAI member SAIs.

In the context of Myanmar’s ongoing political, economic, social, and administrative reforms, public expectations are increasing regarding the effective use of citizen-owned resources and the sound public financial management by the government.

Public sector accounting in the kingdom of Saudi Arabia is undergoing significant transformation, shifting from cash-based to full-accrual accounting. This shift represents a strategic pillar of Vision 2030, which includes large-scale capital projects. In light of this transformation, financial audits must evolve into proactive tools that identify risks, and help redirect public resources toward citizens’ priorities, rather than solely being passive year-end exercises. In response to these changes, Saudi Arabia’s General Court of Audit (GCA) has taken on an increasingly strategic role in strengthening financial oversight and public accountability. 

This study presents a practical application of Benford’s Law to the expenditure data of two Greek municipalities, Messini and Trifylia, aiming to evaluate the extent to which these financial transactions conform to the expected digit distributions as defined by Benford’s Law. The primary goal is to assess the utility of Benford’s Law as a tool in public sector auditing processes and determine whether it can raise red flags to prompt further investigative procedures.

Audit institutions serve as guardians of transparency and accountability in various societies around the world. Yet for too long, their work has remained cloaked in dense language, legal references, and technical jargon that are largely inaccessible to the general public. While audit reports contain findings that can impact every citizen—from public transportation delays to failures in health systems—most people never read them. In an age where information is expected to be instantaneous, visual, and emotionally resonant, audit institutions around the world must reimagine how they present their work.

Governments at a global level, can create various financial structures to segregate funds, set aside funds for specific objectives and manage funds on behalf of other parties. These structures can take the form of various types of trusts, funds, and special-purpose accounts.  Although they provide alternative financing mechanisms that are advantageous in certain circumstances, they can also present challenges from an accounting and auditing perspective.

Financial statement disclosure is considered an important aspect of enhancing transparency and accountability, thus combating corruption. Financial audits conducted by Supreme Audit Institutions (SAIs) play an effective role in auditing these disclosures. In this article, we shall be tackling the disclosure audit of segments reports in the public sector, presenting a case study on these disclosures as an important aspect of enhancing transparency and accountability.

While financial audits of public expenditures are a cornerstone of government accountability, a critical dimension of public finance often escapes equivalent scrutiny: revenue losses through tax expenditures. In 2023–2024, Brazil’s Supreme Audit Institution (SAI Brazil), conducted an audit of federal tax benefits which revealed significant governance gaps and risks to fiscal sustainability.