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INT syllabus: Audit of performance information in the public sector
Definitions
1.1 Performance audit
Performance audits aim to provide management with assurance and advice
regarding the effective functioning of its operational activities.
A performance audit uses auditing skills (planning & risk assessment, gathering
sufficient appropriate evidence, reporting) and applying them to activities of the
organisation that an external auditor of the financial statements wouldn't normally
consider.
Performance audits may include:
1 Performance information
2 Value for money – economy, efficiency and effectiveness of operations
3 Operational audits
1.2 Performance information
Performance information is information published by public sector bodies regarding
their objectives and the achievement of those objectives.
This information should have the same qualitative characteristics of general purpose
financial reports such as relevance, completeness, reliability, neutrality,
understandability, timeliness, validity and accuracy.
The external auditor may have a responsibility to report on this information to the
users of such information.
Illustrations and further practice
Look at the examples of performance measures for a selection of public sector
bodies in Chapter 18 of the Study Text.
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