scholarly journals ВОВЛЕЧЕНИЕ ОБЩЕСТВЕННОСТИ КАК ОДИН ИЗ НАИБОЛЕЕ ЭФФЕКТИВНЫХ ИНСТРУМЕНТОВ ПРЕДОТВРАЩЕНИЯ КОНФЛИКТА ИНТЕРЕСОВ В ГОСУДАРСТВЕННОМ СЕКТОРЕ SOCIETY INVOLVEMENT AS ONE OF THE MOST EFFECTIVE TOOLS TO PREVENT CONFLICTS OF INTEREST IN THE PUBLIC SECTOR

2020 ◽  
pp. 225-241
Author(s):  
Jaroslav Strecenok
Keyword(s):  
Public Sector ◽  
Conflicts Of Interest ◽  
The Public

The surveillance of a supreme audit institution on related party transactions

2020 ◽  
Vol 32 (4) ◽  
pp. 577-603
Author(s):  
Gustavo Cesário ◽  
Ricardo Lopes Cardoso ◽  
Renato Santos Aranha
Keyword(s):  
Public Sector ◽  
Latent Dirichlet Allocation ◽  
Topic Model ◽  
Conflicts Of Interest ◽  
International Standards ◽  
Content Type ◽  
Related Party Transactions ◽  
The Public ◽  
Audit Reports ◽  
Dirichlet Allocation

PurposeThis paper aims to analyse how the supreme audit institution (SAI) monitors related party transactions (RPTs) in the Brazilian public sector. It considers definitions and disclosure policies of RPTs by international accounting and auditing standards and their evolution since 1980.Design/methodology/approachBased on archival research on international standards and using an interpretive approach, the authors investigated definitions and disclosure policies. Using a topic model based on latent Dirichlet allocation, the authors performed a content analysis on over 59,000 SAI decisions to assess how the SAI monitors RPTs.FindingsThe SAI investigates nepotism (a kind of RPT) and conflicts of interest up to eight times more frequently than related parties. Brazilian laws prevent nepotism and conflicts of interest, but not RPTs in general. Indeed, Brazilian public-sector accounting standards have not converged towards IPSAS 20, and ISSAI 1550 does not adjust auditing procedures to suit the public sector.Research limitations/implicationsThe SAI follows a legalistic auditing approach, indicating a need for regulation of related public-sector parties to improve surveillance. In addition to Brazil, other code law countries might face similar circumstances.Originality/valuePublic-sector RPTs are an under-investigated field, calling for attention by academics and standard-setters. Text mining and latent Dirichlet allocation, while mature techniques, are underexplored in accounting and auditing studies. Additionally, the Python script created to analyse the audit reports is available at Mendeley Data and may be used to perform similar analyses with minor adaptations.

scholarly journals THE DEVELOPMENT OF ANTI‐CORRUPTION ENVIRONMENT IN LITHUANIAN PUBLIC SECTOR: BEST PRACTICE AND EXPERIENCE

2020 ◽  
pp. 92-115
Author(s):  
Raimundas Kalesnykas
Keyword(s):  
Public Sector ◽  
Best Practice ◽  
Good Governance ◽  
Conflicts Of Interest ◽  
Active Role ◽  
Added Value ◽  
Problem Analysis ◽  
The Public ◽  
Public Sector Organization ◽  
Public Sector Organizations

The article analyses the preconditions for the establishment of an anti-corruption environment in the public sector organization and demonstrates Lithuania's best practices in this area. Corruption as a multi - structured global phenomenon undermines good governance, public trust in public sector organizations and causes serious damage to the functioning of those organizations. One of the essential aspiration of the Lithuanian Government is to reduce the extent of corruption, increase transparency, fairness and openness in the public sector. Research focus on justification the hypothesis, that the public sector organizations must play an active role in the field of combating corruption, creating an unfavourable environment for corruption prevail. The purpose of the research is to show the added value for the development of anti-corruption environment in the public sector as one of the effective tool minimizing the extent of corruption. Research results shows that legislation alone is not sufficient to solve corruption problem. Public sector organizations usually do not have effective anti-corruption tools to prevent and manage various forms of corruption (bribery, nepotism, conflicts of interest, etc.). By conveying best practice, the author presented a new initiative of Lithuanian public sector organizations to develop anti-corruption environment aimed at minimizing the likelihood of manifestation of corruption. Logical and comparative analysis, document analysis, problem analysis and systematic approach research methods are used analyzing issues related with the boosting effectiveness of combating corruption in the public sector. The author's position and concludes, that the development of an anti-corruption environment should become a strategic priority of the public sector organization, which requires the establishment of an effective management system of corruption prevention and the commitment shown by top management to ensure its functioning in a realistic rather than formal way.

Follow the money: who profits and how

2019 ◽  
pp. 191-226
Author(s):  
Stuart Hodkinson
Keyword(s):  
Public Sector ◽  
Conflicts Of Interest ◽  
Self Regulation ◽  
Bottom Line ◽  
Tax Havens ◽  
Financial Flows ◽  
The Public ◽  
Private Banks ◽  
Ultimate Owners ◽  
Big Four

This chapter turns to the bottom line of outsourced regeneration and self-regulation – the colossal financial riches made, following the money from government to the immediate companies and then through to their ultimate owners, often offshored in tax havens. A first section recaps on the variety of unnecessary costs imposed on the public sector through PFI procurement that would simply not be possible if the scheme was financed and procured directly through the public sector. A second section focuses on the complex yet lucrative financial deals done to raise the upfront investment that provide private banks, financial market traders and PFI investors with enormous, risk-free profits. A third section turns to the generous profit margins commanded by the construction and maintenance firms in these PFI schemes from the lack of genuine competition in the procurement process. A fourth section details how corporate consultants and the big four accountancy firms also financially benefit from advising and auditing on these schemes in ways that create real conflicts of interest. A final section that follows these different profitable financial flows through the MFN regeneration scheme.

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