Reframing Strategic Auditing as a Public Value Creation Mechanism: Evidence from Underutilized Public Assets and Sovereign Fund Performance in Egypt
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Purpose: This study investigates how strategic auditing can be reframed as a public value creation mechanism capable of improving the utilization of underutilized public assets and strengthening sovereign fund performance in Egypt. Moving beyond conventional compliance-oriented auditing, the study conceptualizes strategic auditing as an integrated governance architecture that enhances strategic alignment, accountability, transparency, and long-term public value generation within emerging economies.
Design / Methodology / Approach: The study adopts a mixed-method research design integrating governance theory, public value theory, institutional theory, and strategic management perspectives. Empirically, the research combines quantitative analysis, comparative case assessment, and strategic performance evaluation across public asset entities and sovereign fund units in Egypt. Statistical techniques, including regression analysis and structural equation modeling (SEM), are employed to examine the relationships among strategic auditing, governance quality, operational readiness, business model effectiveness, and value-creation outcomes.
Findings: The findings provide strong empirical evidence that strategic auditing significantly improves public asset utilization and sovereign fund performance. Governance-oriented auditing practices enhance strategic coherence, strengthen accountability systems, improve decision usefulness, and reduce institutional inefficiencies. The results further reveal that business model robustness, governance quality, operational readiness, and risk management maturity are critical determinants of sustainable public value creation.
Originality / Value: The study contributes to the auditing literature by repositioning strategic auditing from a compliance-based control function to a multidimensional public value creation mechanism. It also provides one of the first empirical frameworks linking strategic auditing, underutilized public assets, and sovereign fund performance within an emerging economy context.
Theoretical, Practical, and Social Implications: Theoretically, the study advances public value and strategic auditing literature by integrating governance, institutional, and capability-based perspectives. Practically, it offers policymakers and sovereign fund authorities a strategic framework for improving asset monetization and governance effectiveness. Socially, the study highlights the role of strategic auditing in promoting transparency, sustainable development, public trust, and long-term economic resilience in Egypt.
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