The quest for legitimacy: The European Court of Auditors’ work on fraud

Abstract

This research aims to contribute to the debate on fraud on public funds and the work that public auditors perform on this important topic, providing a useful analysis for government officials concerned about accountability, good governance, and transparency. This article presents a retrospective analysis of the European Court of Auditors’ (ECA) role in combating and preventing fraud. Using innovative research tools such as the Valence Aware Dictionary and sEntiment Reasoner lexicon and other quantitative and qualitative research methods, evidence is found that ECA fraud audits reach a more negative tone in their conclusions than in the rest of the audits and that their audit recommendations on fraud are accepted to a lesser degree than the rest. Although in recent years the ECA has taken a more active role regarding fraud and stirring the public debate on this topic, its work is still hampered by its non-jurisdictional statute. The results obtained contribute to the literature on fraud in the public sector by bringing empirical evidence on public sector fraud audit with data of an under-researched and unique Supreme Audit Institution. This article opens up new avenues for future research and has practical implications for practitioners by offering them insights on their role on the issue, thus helping them to address some areas more prone to be affected by fraud.