This paper aims to empirically examine how public sector auditing agencies have strategically positioned themselves in a changing external operating environment and policy context. Specifically, this study aims to examine the effect of strategic management accounting on strategic supply chain positioning. The mediating roles of external and internal orientations were employed as mediating variables in this study. The research was conducted in the Audit Board of the Republic of Indonesia (BPK) in December 2022 to January 2023 by involving a total sample of 325 respondents. The data obtained in this study were analyzed using a variance-based structural method using the Partial Least Squares path modeling method through SmartPLS software. The findings showed that there is a significant influence of strategic management accounting on strategic supply chain positioning. The findings also emphasized the mediating roles of internal orientation and external orientation in strengthening the effects of strategic management accounting on strategic supply chain positioning. The results highlighted that strategic management accounting plays an important role in helping public sector auditing agencies to strategically position themselves in auditing practices. In addition, internal orientation can also help organizations to optimize the use and the allocation of internal resources. The findings presented in this study theoretically contribute to explaining empirical evidence regarding the effect of strategic supply chain positioning in strategic management accounting activities in public sector accounting and auditing practices.