Public Sector Auditing and Its Role in Enhancing Financial Integrity

Abstract

Financial integrity in the public sector is essential for credible governance, fiscal sustainability, and public trust. This study examines the role of public sector auditing in enhancing financial integrity by synthesizing existing scholarly evidence. Using a systematic literature review approach, this study analyzes peer reviewed research on public sector auditing, accountability, and financial integrity within government contexts. The findings indicate that public sector auditing contributes to financial integrity primarily through improving financial reporting quality, deterring misconduct, and strengthening accountability mechanisms. The effectiveness of auditing is strongly influenced by the institutional environment, particularly the independence and mandate of audit institutions, as well as the implementation of audit recommendations. The review also highlights the growing importance of integrated accountability, where audit results are linked with parliamentary oversight and public scrutiny. Furthermore, the expansion of digital systems and performance oriented governance introduces both opportunities and risks for auditing, requiring adaptive audit methodologies and enhanced professional competencies. Overall, the study concludes that public sector auditing can significantly enhance financial integrity when supported by strong institutional frameworks, effective follow up mechanisms, and responsive approaches to digital transformation and societal expectations.