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Abstract
The Single Audit Act of 1984 (SAA) was designed to improve the quality of financial management in government entities which receive federal financial aid. Many members of Congress felt there was a real need to improve the systems of control in these affected units of government. However, the ultimate goal was to improve the incidence or quality of compliance. It is through compliance that legislators and administrators alike control the expenditure process. The audit is an integral part of the control process. Without the audit there can be no verification of compliance and the legislative and political process is undone. The Single Audit Act was implemented to bring a greater degree of control over the federal expenditure process.
This study examines if compliance has indeed improved under the SAA and what factors have caused this change in control. The audit is viewed as a vehicle to bring about behavioral changes in affected individuals. In this instance the question is whether or not the SAA has moved managers to improve control and consequently compliance.
The study consists of a survey which tapped the perceptions of highly qualified individuals who work with the SAA on a day to day basis. The results indicate that compliance has improved. Furthermore if one looks at the characteristics and qualifications of the individuals survey their perceptions seem highly credible. The analysis also revealed that the full model was a highly significant predictor of compliance. Unfortunately not all of the variables in the model were significant predictors. The study also revealed that the respondents had differing perceptions concerning the working of the SAA depending on their place or level of employment.
The study showed that the SAA has been successful in improving the incidence of compliance. However, individual factors may need to be emphasized by those who supervise the process to improve control even more.
