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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.79, # 1, 2022, pp. 69-79


                    The Ethiopian government recognized the need to provide citizens with  effective,
                    efficient, and timely public service as part of its objective to improve overall public
                    service performance. Economic prosperity, which serves as a measurement of the
                    living standards of the people under a specific policy, is strengthened by the power
                    of  oversight  bodies  like  the  Office  of  the  Auditor  General.  According  to  the
                    Ethiopian constitution 1994 article 101subarticle 2, The office of Auditor General of
                    Ethiopia shall audit and inspect the accounts of ministries and other agencies of the
                    Federal  Government  to  ensure  that  expenditures  are  properly  made  for  activities
                    carried out during the fiscal year and in accordance with the approved allocations,
                    and submit his reports thereon to the House of Peoples' Representatives.

                    1.1 The problem Statement
                    The leading public sector audit bodies in a nation are the Supreme Audit Institutions
                    (SAIs) in many countries and office of auditor general (OFAG) in some countries.
                    Their  main  responsibility  is  to  determine  if  public  monies  are  used  effectively,
                    economically, and efficiently while adhering to all applicable laws and regulations
                    as  well as  the priorities of the country. They achieve this  by providing impartial,
                    thorough  audit  reports  designed  to  improve  how  governments  handle  public
                    resources.  By  ensuring  that  money  is  wisely  spent,  they  can  prevent  fraud  and
                    contribute  to  the  reduction  of  poverty  while  also  promoting  sustainable  national
                    development.  They  are  an  important  element  of  a  nation's  public  financial
                    management  system,  assuring  parliaments,  citizens,  development  partners,  and
                    others that governments are effectively managing their finances (OECD, 2010).

                    Government  revenue  and  expenditure  audits  are  the  responsibility  of  supreme  audit
                    institutions, which are national-level watchdog institutions. They ensure that resources
                    are  spent  in  accordance  with  national  government  directives  by  closely  examining
                    public financial management and reporting (Transparency International, 2008).

                    However, audit institutions frequently operate in unstable democracies in developing
                    nations  where  the  judiciary  and  parliament  are  unable  to  hold  the  government
                    accountable, undermining the independence of audit institutions. Furthermore, it is
                    frequently difficult to complete the rigorous, high-quality audits required to ensure
                    transparency, openness, and accountability in the administration of public finances
                    due to a lack of resources and technical expertise (Mbaguta, 2020).Ethiopia is one of
                    the world's emerging nations. “Poverty is made worse by corruption, which can be
                    petty or grand and hinders progress.”







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