Some Additional Evidence on the Determinants of State Audit Budgets
Posted: 3 Aug 2014
Date Written: 1987
State and local governments are exempt from the auditing regulations of the Securities and Exchange Commission (SEC). Nevertheless, state governments expend considerable resources on financial, legal compliance, and operational audits. The objective of this paper is to identify the relationships and incentives that motivate public sector auditing expenditures in the absence of SEC regulation. While we know of no well-developed theory which specifies the determinants of governmental audit budgets, the discussion of underlying relationships and the empirical regularities demonstrated in this study could be useful in developing such a theory.
Keywords: State audit budgets, Determinants
JEL Classification: M41, M42, M48
Suggested Citation: Suggested Citation