Role of Performance Audit in Public Sector Organization

This study aimed to examine the role of performance audit in public sector organization by analyzing various literature on performance audit in public sector organization. Based on ground theory, performance audit has purpose to enhance performance and accountability hence the role of this audit is to enhance performance and accountability. Based on this premise, this study seeks for empirical studies that support this theory and analyze the impact of performance audit in public sector organization in several countries: Estonia, Indonesia, New Zealand, and Norway. Applying a methodology adapted from basic theory and literature review and the results of previous studies, this study further confirms that the role of public sector performance audits is to improve public performance and accountability. However, this role can only be realized when the performance audit that is carried out meets certain criteria, such as the quality of the audit and the quality of the audit report containing findings and recommendations where the quality is influenced by the audit team conducting the performance audit.