Evidence about the value of financial statement audit in the public sector

David Hay, Carolyn J. Cordery

Research output: Contribution to journalArticlepeer-review


Multiple, complementary explanations have been developed to explain audit demand. Substantial evidence exists for these explanations in the private sector, but they have been explored to a lesser extent in the public sector. We assess the extent to which these explanations for the value of auditing are relevant in the public sector by examining evidence from New Zealand. We find the use of overlapping explanations helps to explain how auditing is valuable to a wide variety of users.
Original languageEnglish
Pages (from-to)304-314
Number of pages11
JournalPublic Money and Management
Issue number4
Early online date25 Feb 2020
Publication statusPublished - 2021

Bibliographical note

This is an Accepted Manuscript of an article published by Taylor & Francis Group in Public Money & Management on 25 Feb 2020, available online at: http://www.tandfonline.com/10.1080/09540962.2020.1729532


  • Agency costs
  • New Zealand
  • Office of the Auditor-General (NZ)
  • armchair auditors
  • audit demand
  • financial reporting
  • management control
  • supreme audit institutions (SAIs)


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