TITLE:
Unveiling the SAI Uganda Audit Quality Indicator Framework: Qualitative Analysis of Auditors’ and Auditees’ Perspectives
AUTHORS:
Simon Peter Mulati
KEYWORDS:
Audit Quality, Audit Quality Indicators (AQIs), Audit Reporting, Quality Con-trol (QC), Quality Management, Government Sector Auditing, Audit Quality Monitoring Framework
JOURNAL NAME:
Open Journal of Accounting,
Vol.12 No.4,
October
12,
2023
ABSTRACT: This study addresses challenges related to
measurement and assessment of audit quality, particularly in Supreme Audit
Institutions (SAIs), which has been topical albeit with limited focus on the
government sector. The research focuses on the Office of the Auditor General of
Uganda (OAG) and aims to provide insights into the perspectives of auditors and
auditees. The study poses three main questions: does the OAG have a framework
for assessing and reporting audit impacts? What factors are utilized to measure
the quality of government audit reports? Should these measures be publicly
disclosed to enhance accountability? The
research follows a qualitative approach with purposive sampling
encompassing multiple case studies, including four public universities, the OAG Uganda, and five private audit firms involved in government audits. Semi-structured interviews were conducted with 51
participants, and the data was analysed using Atlas. TI software. The findings indicate that the OAG
lacks a formal framework for assessing and reporting audit impacts but engages in impact assessments through stakeholder
involvement, automated tracking of recommendations, and reporting in the annual performance report. Key Audit Quality Indicators (AQIs) identified
include the number of audit queries, actionable recommendations, and the
inclusion of exceptions and key achievements in audit reporting. Regarding the
public disclosure of AQIs, the study suggests limiting disclosure to
non-technical indicators to avoid widening the audit expectation gap caused by
inherent limitations in audits, biased mindsets, fluctuating stakeholder
expectations, and potential premature and inaccurate judgments. The study’s
findings and recommendations have implications not only for government sector
auditing in Uganda but also for other countries, international regulators, and
standards setters, providing universal value.