Compliance reporting decisions in municipal audits

The impact of budget variance and employment sector

Bibliographic Data

ID20201224
AuthorsLinda A Kidwell (0000-0002-4105-7295, Niagara University, corresponding author)
Year1999
Volume11
Issue3
Pages325-356
Publication date1999-03-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Public Budgeting Accounting & Financial Management (JOURNAL)
Journal identifiersISSN: 1096-3367 • E-ISSN: 1945-1814
PublisherEmerald (PUBLISHER)
DOI10.1108/jpbafm-11-03-1999-b001
OpenAlexW2775517685
LanguageEN
Citations received2
References cited12

Governmental auditors must report on compliance with laws and regulations if such noncompliance has a material impact on the financial statements. Little is known about what factors impact a governmental auditor’s reporting decisions. This study examines reporting decisions regarding violations of the Louisiana Local Government Budget Act. Study participants included private practitioners and employees of the Legislative Auditor. Subjects were asked where they would report Budget Act violations under differing degrees of noncompliance. Budget variance and employment sector impacted compliance reporting decisions. At higher levels of budget variance, higher levels of reporting were used. Legislative auditors were found to report at higher levels than private practitioners. They apparently viewed non-compliance as black-and-white; any level of noncompliance was reported in the compliance report. Private practitioners, however, applied a materiality test

Audit · Business · Economics · Legislature · Political science · Private sector · Auditing, Earnings Management, Governance · Psychology · Public Policy and Administration Research · Regulation and Compliance Studies · Accounting

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