The Impact of Municipal Governance on Cities’ Audit Performance

• In Event: Nonprofit and Governmental Auditing

Abstract

The objective of this study is to analyze the impact of municipal governance on cities’ audit performance, measured by internal control weakness disclosures. While corporate governance has been studied at length, the structure and role of governance in a municipal setting is a less explored area. In this paper, five separate regression models are used to estimate the relationship between municipal governance and audit performance. In each of the regression models, governance factors are found to be significant predictors of audit performance, to varying extents. This study broadens existing theory in the municipal setting as it is the first of its kind to explore the relationship between municipal governance and audit performance. Furthermore, significant evidence is found that extends results from the private sector to the public sector in this research and previously unexplored municipal governance variables are introduced.

Author

• Amanda Peterson, East Carolina University