EFFECTS OF AUDIT PROCESS QUALITY AND MONITORING ON PUBLIC SECTOR ACCOUNTABILITY: EVIDENCE FROM SELECTED GOVERNMENT AGENCIES IN NIGERIA

Abstract

This study examines the effects of audit process quality and monitoring on public sector accountability in Nigeria, with evidence drawn from selected government agencies. The study aims to evaluate how three key components, Audit Planning Procedures (APP), Audit Process Risk Management (APRM), and Audit Quality Review (AQR), influence financial, social, and administrative accountability within Nigeria’s public sector. A survey research design was adopted, and data were collected from 276 auditors in the Office of the Auditor-General for the Federation (OAuGF) using a stratified random sampling technique. Analytical procedures employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to assess both measurement and structural models. Findings revealed that all three components of audit process quality significantly enhance public sector accountability, jointly explaining 52.5% of its variance (R² = 0.525). Among them, Audit Process Risk Management (β = 0.364, p < 0.01) exerted the strongest influence, followed by Audit Quality Review (β = 0.259, p < 0.01) and Audit Planning Procedures (β = 0.223, p < 0.01). Disaggregated results showed that APRM and AQR most strongly affect financial accountability, while APP demonstrates the highest impact on administrative accountability. The study concludes that improving the quality of audit processes, through risk-based auditing, structured planning, and continuous quality review is essential for enhancing transparency and fiscal discipline in Nigeria’s public institutions. The study recommended among others, that the Office of the Auditor-General of the Federation and State Auditors-General should develop and implement comprehensive risk assessment frameworks to identify high-risk areas within public institutions and allocate audit resources effectively.