Driving Improvements at Local Government External Auditing: A Lesson for Malaysia
Vol. 1, No. 1, 2010, pp. 49 – 56


: Haslida Abu Hasan


External auditing has had a long history of assuring stewardship and accountability between principal and agent, mainly in the private sector but also encompassing and benefiting the public sector. As it works more consulting-like for the public sector or non-profit organization, it has been used widely as one of many inspection activities performed on local authorities especially in the developed countries. In the local government, audit started as tools to provide assurance concerning the reliability of the accounts of an authority and on the legality of the underlying transactions. However, since the 1980s, external auditing has been applied in a variety of contexts referring to new and (or) more intense account-giving and verification requirements (Courville et al, 2003), which is argued by Power (1997) as the ‘audit explosion’. This article intends to introduce the success of external auditing in driving improvement at local government in England so their experience could be shared among managers of Malaysian local government and public sector at large