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The Challenges of Public Sector Audit as an Effective Accountability Tool in PPP Arrangements in Nigeria. By S. C Okaro and Gloria Ogochukwu Okafor (Mrs). Both of Department of Accountancy, Nnamdi Azikiwe University, Awka. E Mail: [e-mail]. E Mail:[e-mail] Contact Author: S.C Okaro Contact E Mail: [e-mail] Abstract The Purpose of this study is to explore some of the challenges constraining public sector audit from acting as an effective accountability tool in PPP arrangements in Nigeria and to proffer solutions. This is a conceptual paper and relies on extensive review of literature. We find, among others, that inadequate independence of the supreme audit institution, poor accounting environment, lack of executive capacity, the unsatisfactory performance of PAC, poor use of technology pose serious challenges facing public sector audit as an effective accountability tool in PPP arrangements in Nigeria. Some of our recommendations include the strengthening of the independence of the supreme audit institution, bestirring the PAC to be alive to its responsibilities and improving the accounting environment. Key Words: Audit, PPP, Auditor-general, Challenges, Accountability, Public sector, Effective Tool. Introduction An audit is an independent examination of the financial statements of an organization with a view to forming an opinion as to the truth and fairness of the statements. Audits everywhere are undertaken to lend credibility to financial statements for use of people other than those who prepared them. Governments faced by massive infrastructural challenges and lacking the necessary finance to execute the projects are increasingly turning their attention to PPP arrangements to make hay. A PPP arrangement refers to contractual agreement formed between a public agency and private sector entity that allow for greater private sector participation in the provision of a public service. The overall goal of PPP includes

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