A Conceptualisation of Government Department Audit Committee Independence

This research provides insight into the conceptualisation of independence in Government Department Audit Committees. Audit Committees are an important part of the governance arrangements in Government Departments as they provide independent advice to the Accounting Officer and oversee the work of the Internal Audit function. Audit Committee research has focused mainly on private sector organisations and although independence is argued to be one of the most researched characteristic of Audit Committees, certain features that are usually thought to indicate Audit Committee independence in the private sector are not present in the same way in Government Departments. A conceptualisation of independence must go beyond the traditional rules, procedures and best practice guidelines because Audit Committee practitioners adapt guidelines to suit the particular context of the work on hand. This research is therefore an interpretive qualitative study underpinned by practice theory. It addresses three research questions that examine how independence was codified into the operation of Audit Committees, how Audit Com mittee practitioners make sense of independence in their role and how independence is reflected in the work of the Audit Committee. By applying the practice theory concepts of praxis, practice and practitioners, this research provides insight into the conceptualisation of Government Department Audit Committee independence. It finds that independence in Government Department Audit Committees can be conceptualised as a combination of ideas, some of which extend the shared understanding of Audit Committee independence in literature. The main findings of this research are that Audit Committees in Government Departments operate within a governance environment that differs from what obtains in the corporate sector, and their independence can be conceptualised from the perspective of the process of appointing members, the insignificance of personal benefits for members, the hierarchies of independence of members and the Audit Committee’s exercise of soft power. The findings in this research may serve as a useful evidence base for the development of future Audit Committee guidelines and policies by the Department of Public Expenditure and Reform.