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The purpose of this paper is to analyse auditors’ experience with corporate psychopaths in their client management.

The research was conducted as a survey among Danish state-authorized auditors, to which 179 auditors responded, representing 9 per cent of the total population.

Of the participating auditors, 69 per cent had experienced corporate psychopaths in their client management and 70 per cent of these had experienced more than one case. In addition, 43 per cent of the auditors who had experienced psychopathic managers reported that they had committed fraud. The vast majority of cases were detected in the execution and completion phases of the audit and resulted in increased professional scepticism, the use of more experienced auditors and the requirement for more and better audit evidence.

The findings confirm that corporate psychopaths actually exist and are a phenomenon worthy of research attention in areas such as accounting, auditing, internal control, fraud investigation, performance management and human resource management.

As auditors are likely to come across corporate psychopaths from time to time in their careers, awareness of this type of risk needs to be increased and better integrated into the risk assessment in audit planning. Auditing standards relating to fraud also need to be updated according to the latest developments in fraud theory.

This is the first research to address auditors’ experience with corporate psychopaths. It adds value by confirming the relevance of the topic for practice and research.

Since the 1970s the Supreme Audit Institutions (SAI) have gradually expanded their role as external controllers of the public administration. Instead of merely controlling whether accounts are according to standards they have taken on a role as evaluators with a mandate to assess whether the public administration works economically, efficiently and effectively. With this new regime of external control, the question arises whether the SAIs’ control, in practice, contributes to a more efficient and effective public sector. Whether this external control will be effective depends, in the end, on the extent to which the organisations learn from the control they are subjected to and make actual changes. The chapter uses theories of cultural differences and theories on control within public administration to understand civil servant perceptions of SAI results. Data on civil servants’ reactions to the SAIs’ performance audit in four countries are analysed to see whether performance audits have any impact on the audited entities. The research is based on 696 responses to questionnaires sent out to civil servants in three different Nordic countries plus one new democracy in northern Europe, Estonia.

The purpose of this paper is to document a Danish fraud scheme, in which a large number of limited companies were stripped of their assets leaving them with nothing but tax debt, eventually causing the Danish Tax and Customs Administration to lose large sums. Furthermore, the purpose is to analyse why the asset‐stripping schemes occurred in a mature market economy with a strong corporate governance system and a low level of corruption.

The research is conducted as a longitudinal single case study based on documentary research.

The Danish case indicates that asset stripping may take place in mature market economies to the extent that perpetrators are able to circumvent the corporate governance system by giving lawyers, public accountants and banks incentives to act less critically towards dubious business transactions.

The opportunity and rationalisations supporting the fraud are particular to the Danish context.

The paper provides insights into the consequences of professionals disregarding their duty to serve the public interest.

The paper provides an example on how to circumvent the social supervisory system of a mature market economy.

The paper contributes to the knowledge about asset stripping by documenting and analysing the phenomenon in a mature market economy context.

This paper investigate the antecedents of the public sector's senior management in interpersonal trust relationships involving sceptical internal audits in public services administrations. This is fundamental for a positive audit, as it affects the auditing relationship and assures a sound public administration.

The author surveyed 261 senior management from 24 Israel's local authorities (about 30%), representing large, medium and small administrations in Israel's North District.

The results indicate that senior management's antecedents to trust sceptically minded internal audits are positive for audit knowledge sharing. Findings also reveal that the internal auditor's ability, integrity and benevolence significantly impact senior management's trust. Whereas open communication does not significantly affect the senior management's propensity to trust, its satisfaction with its internal auditor fosters positive trust and support.

Understanding the antecedents of the senior public manager on internal audit benefits the audit outcomes. Albeit audit professional scepticism's interpersonal trust relationship with senior public manager influences the audit. Audits efficiently related to organisational culture and outcomes.

A new practical model of senior management trust antecedents is presented for a more effective auditing system and public administration. The model is original, as no other empirical studies have yet dealt with senior management's trust in internal audits in the public sector.

This study asks whether external auditors enable the transfer of policies to the United Nations organizations that they audit and, if so, what types of policies are transferred.

The empirical research is based on a content analysis of 512 external auditor recommendations from 28 pre- and post-accrual reports of 14 UN bodies.

We find that external auditors do enable policy transfer and that such involvements may, at times, veer into non-neutral policy spaces.

We did not analyze all UN organizations with accruals-based accounting. We also did not engage in a longer longitudinal study.

Our findings raise new questions about international organization accountability, the technocratic and policy-specific influences of external auditors, and open a debate about whether attempted policy transfers can be neutral.

The world’s largest group of international organizations is affiliated with the UN. External auditors help ensure that member-state monies are appropriately utilized. Our study is the first to compare pre- and post-accrual external auditor recommendations for 14 UN bodies. It is also the first to notate and study the attempted policy transfers from external auditors to the audited UN bodies.

Supreme audit institutions (SAIs) examine and supervise the activity of public institutions. The study aims at contributing to the existing literature on public sector audit by providing a classification of 29 European SAIs – 28 national SAIs and the European Court of Auditors (ECA) – based on a broad range of attributes varying from the SAIs' environment to its structure, activity, resources or transparency.

The authors apply quantitative methodology for clustering by means of multidimensional scaling and regressive ordinary least square (OLS) and logistic models.

The authors' results show that SAIs from veteran EU member states (MSs) are more similar amongst them and the same applies to SAIs from Nordic countries, Baltic countries, Western Mediterranean countries and Eastern countries. The authors also perform additional analysis focussing on currently relevant issues such as gender equality, age, environment or the sustainable development goals (SDGs), concluding that the younger the institutions' staff, the more transparent the institutions are. The authors also find that more transparent SAIs report on environmental audits, more prone to cover the SDGs in their audits.

The research is limited in purpose and scope because data cover only Europe. Given the limited number of observations (29), it does not have prospective purposes but only explanatory ones. The authors' findings are interesting for researchers because they offer original insights on public audit in Europe and cover matters of current interest such as environment, transparency or gender equality.

The research is also of interest for public auditors because it offers them information that may help them improve their activity and find institutional synergies, as the dataset is available to public auditors.

From a social view point, the paper shows that public auditors perform work on topics of interest for the citizens.

The dataset compiled for the research offers extensive data and a wide variety of attributes defining European SAIs and may offer future opportunities for research from different perspectives.