Factors Influencing Public Sector Auditees on Implementing Audit Recommendations

ABSTRACT An increase in audit queries and recurring audit issues every year show that the public sector auditees are taking a longer time or are reluctant to take action on audit recommendations. This study examines the relationship between attitudes and six reference groups namely auditors, follow-up audit, accountability index, Auditors General's Dashboard, the Audit Committee and the media, with the intention of auditees to implement the audit recommendations. Data are gathered through a survey of 226 Malaysian public sector auditees who have the responsibility to implement audit recommendations. This study shows that the auditees’ attitude, the media, the Audit Committee and the accountability index have influenced the intention of auditees to implement the audit recommendations. However, when the analysis is based on the actual implementation of audit recommendations, by ignoring the element of intention, the study finds slightly different findings. It is found that accountability index, the Audit Committee, Auditors General's Dashboard, auditors and follow-up audit have an influence on the implementation of the audit recommendations. This study supports the Theory of Reasoned Action and introduces accountability index as a factor that influences auditees’ intention to implement audit recommendations. Also, this study provides implication to the public sector’s authorities of Malaysia in enhancing the role of media, the Audit Committee and accountability index in assisting the public sector to improve service rendered. Keywords: Audit recommendations; auditor; the rating; dashboard; audit committee; media ABSTRAK Teguran audit yang meningkat dan berulang saban tahun dalam sektor awam Malaysia menunjukkan seolah-olah syor penambahbaikan yang diberikan oleh juruaudit, lewat atau tidak diambil tindakan oleh auditi. Kajian ini secara khususnya mengkaji hubungan antara sikap auditi dan enam kumpulan rujukan iaitu juruaudit, audit susulan, indeks akauntabiliti, Auditor General’s Dashboard, Jawatankuasa Audit dan media dengan niat auditi untuk melaksanakan syor audit. Data kajian diperoleh menerusi soal selidik kepada 226 auditi iaitu pegawai sektor awam Malaysia yang bertanggungjawab untuk melaksanakan syor audit. Hasil kajian menunjukkan sikap auditi, media, Jawatankuasa Audit dan indeks akauntabiliti mempengaruhi niat auditi untuk melaksanakan syor audit dengan segera. Perbandingan dengan hasil kajian berasaskan kepada pelaksanaan sebenar syor audit dengan mengabaikan elemen niat pula menunjukkan keputusan yang sedikit berbeza iaitu indeks akauntabiliti, Jawatankuasa Audit, Auditor General’s Dashboard, juruaudit dan audit susulan mempengaruhi pelaksanaan syor audit. Kajian ini memperkenalkan indeks akauntabiliti sebagai faktor yang mempengaruhi niat auditi untuk melaksanakan syor audit. Hasil kajian ini juga memberi implikasi kepada pihak berkuasa sektor awam Malaysia agar meningkatkan peranan media, Jawatankuasa Audit dan indeks akauntabiliti untuk membantu sektor awam menambahbaik perkhidmatannya. Kata kunci: Syor audit; juruaudit; penarafan; dashboard; jawatankuasa audit; media