Exploring auditing experts’ reactions to expanded public sector auditors’ powers in South Africa

Purpose: This study explores how expert participants reacted to public policy amendments that extended the role of public sector auditors in South Africa.Design/Methodology/Approach: The study uses a qualitative approach relying on documental analysis of public comment letters, public hearing minutes for the Public Audit Amendment Act No. 05 of 2018 (PAAA), and semi-structured interviews with auditing experts.Findings: The study finds that policymakers positioned the Auditor-General of South Africa (AGSA) to address governance challenges and unethical practices in the public sector, given the AGSA’s credibility, competence, and institutional independence. This perception justified the expansion of the AGSA’s roles. The study shows how the expanded roles have not changed governance practices but have amplified legal tactics to evade accountability. The study shows how additional unfunded legal, investigative and advisory roles threaten the structural independence and competency of public sector auditors, which has negative future impacts on the AGSA’s credibility. Additionally, it provides evidence that the expanded roles create a duplication of responsibilities, shielding other state institutions from performing their existing oversight mandates and undermining constitutional democracy.Originality: The study is the first to evaluate the practical impacts of changes to public policy initiated to grant more powers to public sector auditors in an emerging economy riddled with corruption through the lens of auditing experts.Contribution: The study may be useful to policymakers and AGSA leadership in understanding experts’ perspectives on government policy regarding observed practices on the ground.