Explaining municipal audit costs in Sweden: reconsidering the political environment, the municipal organisation and the audit market

Sven-Olof Collin, Mattias Haraldsson, Torbjörn Tagesson, Veronica Blank

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

With the purpose of explaining professional audit costs in Swedish municipalities, we hypothesised that audit costs are partly driven by various signalling and monitoring incentives in order to manage stakeholder relationships. Our model of the determinants of audit costs was tested on data from Swedish municipalities, thus extending the study of audit costs to political organisations in a Scandinavian institutional context. The test supported to some extent the traditional propositions of organisational complexity, risk and market determinants, as well as the proposition of the political environment. Our results indicate that audit costs are used to signal accountability, thereby suggesting that audit as a signal could be managed without managing professional auditors.

Original languageEnglish
Pages (from-to)391-405
Number of pages14
JournalFinancial Accountability and Management
Volume33
Issue number4
DOIs
Publication statusPublished - 2017

Swedish Standard Keywords

  • Business Administration (50202)

Keywords

  • Sweden
  • audit costs
  • governance
  • municipality

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