Offentlig revision: Juridisk-kritisk revision af de kommunale kontrolgrupper

Abdullah Bayhan & Tanja Wendel Johansen

Student thesis: Master thesis


This thesis concerns the issue of how the citizen’s constitutional rights are ensured by the compliance of the Municipality’s’ audit. This is answered by applying The Expectation- Performance Gap Theory in analysing society’s reasonable expectations to the auditor’s existing duties. The thesis applies Agent Theory, where the State, the Municipality as a whole, and the Municipal control group is considered the agent, and the citizen that receives a social benefit is considered the principal. All theories applied are based on Trust Theory where the auditor’s role as provider of strategic trust is emphasised. There has been enormous public criticism of the method used by the Municipal control groups to stop or severely restrict citizen’s social benefits based on a false accusation. This critique has been that the methods used are illegal, and that constitutional rights of the principal are being violated. To answer what the auditor’s existing duties are, the analysis is focused on the areas that are relevant in establishing whether there is a risk of the citizens’ constitutional rights being violated and whether the auditor is legally and professionally obligated to consider such risks in planning the Municipality’s audit. The latter is answered by analysing; 1. Whether the compliance audit include legal and professional responsibilities for the auditor to consider the constitutional rights of the social client. 2. The ethical demands Existing for the auditor. 3. The special circumstances existing on acceptance of an audit assignment from the Municipalities. 4. The inherent risks in the Municipality’s political context and organisation. To establish whether there are risks of constitutional rights being violated when a citizen is accused of social fraud, the analysis includes; 1. The working context of the control units and their authorities. 2. The constitutional rights in risk of being violated, considering the public critique, and the risk of fraud by the control units. 3. The risk of utility optimization by the State, the Municipalities, the control units and the auditor, and thereby possible violation of the citizen’s constitutional rights. From these conclusions, it is found that there is a risk of violation of the citizens’ constitutional rights when accused of social fraud by the control unit. The conclusions also show that the auditor has an existing duty to consider this risk; 1. Before submitting a tender on an audit. 2. Planning their audit. 3. Include appropriate comments and recommendations therein. The above conclusions are used in the analyses of auditor’s perception of exiting duties when auditing the Municipalities control efforts on social fraud and in analysing audit reports. These analyses conclude that the auditor’s focus is to audit the Municipalities’ effort to prevent social fraud. The risk of the citizen’s constitutional rights being violated is not a part of the audit strategy or addressed in the audit reports. It also shows that the criticised procedures of the Municipality’s control units are recommended by an audit house. These conclusions question the auditor’s independence, considering the utility maximisation risk of the auditor existing when the Municipality is deciding the areas to be audited, and where a more lucrative consulting job is performed by the same audit house which is performing the Municipality’s audits.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2016
Number of pages130