Operational auditing practices in western developed countries : implications for government audit in the State of Kuwait
This research aims at finding out to what extent the new audit techniques, (operational auditing, value for money audit ... etc.), which have been developed by western developed countries and used by their supreme audit institutions to review government activities, could be transferred to developing countries. To be more precise, this study attempts to achieve the following objectives: (1) To study the availabile literature on the nature and objectives of operational auditing, [OA]. (2) To investigate how OA is performed in practice by some western countries, (namely Canada, Sweden, the UK and the USA). (3) To determine whether there is a need for introducing OA techniques to the Kuwaiti Public Sector, [KPS], and particularly to the Kuwaiti Audit Bureau, [KAB]. (4) Finally, to draw-up conclusions and implications for the KAB. Methods used for compiling, and analysing, data has included: (1) Library research (2) Review of government documents (3) Fieldwork in UK local and health authorities and in the State of Kuwait (4) Statistical analysis The study revealed that there is no generally accepted definition for operational auditing nor any general agreement on its main components. Furthermore, it confirmed the existence of differences of purpose and scope in the practice of OA investigations in the selected, western developed countries, (Canada, Sweden, the UK and the USA). The research concludes by identifying implications for the Kuwaiti Audit Bureau and any foreseeable obstacle which could hinder the introduction, or full adoption, of OA techniques in the Kuwaiti public sector. The researcher proposes suggestions and makes recommendations to overcome these impediments.