Supreme Audit Institutions and Importance of Their Trustworthiness

There is a lot of scientific research on the concept of trust and the impact trust has on business operations. Public decision-makers also try to avoid situations that negatively affect the level of trust in public organizations and may reduce the competitiveness of domestic economies. Although Supreme Audit Institutions (SAIs) through their activities support competitiveness in the business sector reducing the risk of opportunistic behaviours, their role in maintaining or enhancing public trust in SAIs is virtually an unexplored area. This preliminary study addresses this research gap. The objective of this research was to identify and describe specific activities that SAIs can take to mitigate the risk of loss of public trust in its operations without negatively affecting the benefits these organizations provide to society. This study was based on a literature review, an analysis of audit reports prepared by SAIs from Poland, USA, United Kingdom, Germany, Austria, Czech Republic, and an analysis of audit laws, regulations and standards. In addition, the study was based on information obtained from interviews carried out with SAI's representatives from Poland, the USA, Germany, and Austria. The results show that when SAIs take steps to mitigate the risk of losing trust they may create an epistemic injustice in the public audit process and they may limit their usefulness to their customers. The audit mechanisms that may enhance trust in audit institutions have been identified. The presented results may be useful for managers, practitioners and policy makers from different organizations in various ways.