Organizing the Audit Society: Does Good Auditing Generate Less Public Sector Corruption?

Few cross-country studies examine the effects of auditing quality on public sector corruption. We present a definition of good auditing consisting of three principles: independence, professionalism, and recognizing the people as the principal. Using novel data from an original expert survey covering more than 100 countries, the concept is then operationalized and tested empirically. The results demonstrate that good auditing has a positive effect on national levels of public sector corruption. This lends reason to believe that auditing which is organized according to certain principles has potential to contribute to well-functioning public administrations with a low degree of corruption.