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ABSTRACT:

The study surveyed the effect of external audit and the performance of the public sector. Selected public institutions in Rivers State were used as case study. Concept of external audit, public sector management and public sector audit were reviewed. Relevant theories such as Agency, Inspired confidence and Policeman theories were examined in the study. The study also reviewed some empirical literatures. Correlation design was adopted in the methodology where data obtained were correlated. Further analysis of the data presented were reviewed and discussed. Findings of the study revealed amongst others that, institutions under study adheres to laid down procedures for good governance. Financial accountability were found to be effectively practiced in the management of public institutions in Rivers State which gave room for sustainable development. There is prompt attention to irregularities thereby reducing their occurrence in the agencies under study. It therefore, recommend sustainable financial transparency, integrity based appointment and adherence to the principle of audit independence and periodic capacity building for staff of Government Agencies to ensure that citizens enjoy the expected dividend of service.

KEYWORDS:

External Audit, Public Sector performance, Public Entity, Accountability.

JEL: L32, M4, M48

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