Strengthening Public Sector Audit Through Risk-Based Internal Control: A Conceptual Framework for Local Governments

This conceptual paper proposes an integrated framework for enhancing governance in local governments by combining public sector auditing, risk-based internal control, and accountability mechanisms. Drawing on Agency Theory, COSO Enterprise Risk Management, and Public Accountability principles, the framework addresses a critical gap in the literature: previous studies have examined these components separately, without demonstrating their synergistic impact on governance outcomes. The framework positions auditing as the initial monitoring mechanism, risk-based internal control as a tool for proactive mitigation, and accountability mechanisms as enablers of ethical and transparent implementation. The resulting governance outcomes include improved efficiency, strategic decision-making, and enhanced public trust, creating a continuous feedback loop that fosters adaptive, resilient, and evidence-based administration. This model provides both a theoretical contribution and a practical guide for local government practitioners and sets the foundation for future empirical testing.