Real‐time audit of public agencies: Utility, controversy and lessons for an emerging practice

Author:

Rabin Yoram1ORCID,Peled Roy2ORCID

Affiliation:

1. College of Management Rishon le Zion Israel

2. Haim Striks School of Law College of Management Rishon le Zion Israel

Abstract

Real‐time audit is the auditing of actions as they occur and the publishing of findings before the audited action was completed. It is an emerging practice of Supreme Audit Institutions (SAIs) in many countries, and it marks a stark departure from the traditional ‘after‐the‐fact’ auditing practice. Real‐time audits have been widely used in the auditing of COVID‐19 relief programmes in many countries. Whereas in the United States and many other countries, this practice became popular only in recent years, Israel's SAI in Israel has been conducting real‐time audits since the 1970s. The article surveys SAI practices in various countries regarding the timeliness of the auditing of public agencies and presents the pros and cons of real‐time audits based on an analysis of the Israeli experience. We conclude by outlining several issues that SAIs should consider before choosing to conduct a real‐time audit.

Publisher

Wiley

Subject

General Economics, Econometrics and Finance,Accounting

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