A Review on Internal Control Lapses in Public Sector Universities

Abstract

This systematic literature review synthesizes the evolving body of research on internal control lapses in public sector universities, drawing on 115 peer-reviewed studies published between 2015 and 2026. The analysis reveals a significant surge in scholarly attention, particularly post-2020, driven by global pressures for accountability, post-pandemic financial scrutiny, corruption risks, and alignment with international public sector accounting standards (IPSAS) and Sustainable Development Goals. Leadership especially ethical and transformational styles emerges as a critical catalyst that orchestrates innovative processes such as AI-driven anomaly detection, blockchain-enabled procurement traceability, ERP-integrated real-time monitoring, and automated compliance systems, thereby embedding robust governance across financial, operational, compliance, and strategic dimensions. Ethical leadership fosters moral stewardship, relational trust, and long-term institutional orientation, while transformational leadership inspires visionary change and adaptive behaviors, collectively enabling COSO-aligned controls, fraud minimization, and resilience amid resource constraints. Descriptive findings highlight methodological dominance of quantitative designs (50%), geographic concentration in developing economies (Asia/Africa 65%), and sectoral focus on general public universities (50%), with notable under-representation of social/ethical lapses, small/regional institutions, and longitudinal studies. Thematic synthesis identifies five interconnected clusters such as leadership/governance styles shaping control dynamics, innovation pathways, internal control pillars (COSO framework), antecedents and skills (ethical culture, training, technological acumen), and performance outcomes (reduced audit findings, financial integrity, and institutional resilience). Despite robust evidence of leadership’s catalytic role, persistent gaps include limited longitudinal depth, cultural contingency models, and integrated frameworks for resource-constrained contexts. The review advances prior work by explicitly bridging internal control theory with innovation and leadership as pathways to holistic governance, offering both theoretical insight and a forward-looking agenda. It calls for methodological pluralism (qualitative and mixed-methods), empirical expansion into underrepresented sectors (e.g., healthcare universities) and geographies, theoretical integration with agency, stewardship, and institutional theories, and practical tools for university administrators to assess and strengthen internal control systems.

Keywords: Internal Control Lapses, Public Sector Universities, Ethical Leadership, Digital Innovation, COSO Framework, Governance Resilience