State Audit Bureau of Kuwait: social, political, and economic influences in Kuwait

Abstract

The social, political, and economic structure of states are different across international states. The configuration of a state is subjective to its cultural and social norms. These norms are powerful in shaping the way the economic, and political systems of the state. Such systems include institutions of the state, such as state audit. Research has been done on understanding the relationship of states, with state auditors. However, minimal research has been done on studying the social, political, and economic structures of powerful states, and how these structures can have an impact on state audit behaviours. This thesis aims to contribute to existing knowledge by providing insight on how and why state auditors auditor the way they do when faced with powerful social and political influences. Kuwait provides a new and interesting institutional setting for such research. With its ruling family, and unchanged constitution, the Kuwaiti state is seen as a bureaucratic state with feudal traits. The thesis provides insight on interviews that have been conducted with key people in the state audit field, state auditors, executives, managers, and employees at a state sponsored investment firm (one of the state audit bureau’s audits that is concerned with this thesis). The theoretical framework is drawn from French philosopher, Pierre Bourdieu’s theory of practice and the state. The thesis finds that state auditor independence is questioned when state auditors are found to produce clean audits for ministries that are head by the ruling class social position. Additionally, the thesis finds that the existence of the State Audit Bureau appears to be for legitimacy purposes rather than the ‘rigor’ of its audit work. This has been further demonstrated through the struggle that took place between the government and the State Audit Bureau. The thesis further examined the social and political influences that may impact the process of conducting the state audit and impacting the outcome of the state audit report. This thesis concludes that under such influences, state audit independence becomes a ‘myth’, because intended purpose of audit becomes secondary to the state auditors increasing their social capital in the state. When understanding the relationship between the state auditors, and the ruling powers in the state, state auditors appear to struggle for a powerful, dominant position with the state. This struggle has shown to hinder the work of state audit.