Posted by Sanjay Vani
Of 107 countries in which Public Expenditure and Financial Accountability (PEFA) assessments have been undertaken, only 2 scored A (or A+) and only 4 scored B (or B+) for the indicator on internal audit (performance indicator (PI) 21 in the PEFA methodology, see www.pefa.org). The vast majority—101 countries—scored either C or D for the effectiveness of internal audit. The internal audit indicator is the only PEFA indicator that has been uniformly rated so low across a broad spectrum of countries: high income/middle income/low income, Anglophone/Francophone, and stable/fragile status. Even Norway, a high-income country, scored D for the internal audit indicator. We can therefore conclude that globally internal audit is not yet as firmly established in the public sector as external audit. This post analyzes some key factors that have contributed to this situation.