[section separator="true"]
[section-item 9]
[row]
[column 12]
[toc-this]
Principles
A performance audit can focus on auditing performance directly or on auditing control systems. An audit can combine these approaches, with a different emphasis to be placed on one or the other depending on the specific circumstances of the audit: The audit approach to be employed must be one that produces the most meaningful audit result, in the most cost-effective manner.
Instructions
Auditing performance directly
This approach focuses directly on the performance achieved and concentrates on [a-glossary term="input"]inputs[/a-glossary]
, [a-glossary term="output"]outputs[/a-glossary]
, [a-glossary term="result"]results[/a-glossary]
and [a-glossary term="impact"]impacts[/a-glossary]
, the assumption being that, if the performance achieved is satisfactory, there is little risk of serious problems being present in the design or implementation of the activity or control systems. Such audits may, for example, assess whether the adopted policies have been suitably implemented and whether they have achieved the intended objectives or whether there are undesirable financial, economic, social and environmental consequences of policy decisions taken.
Examining performance directly is appropriate where there are suitable criteria to measure quantity, quality and cost of inputs, outputs, results and impacts. The auditee’s objectives, if found to be properly conceived, can be the basis against which to judge the performance of the auditee. Similarly, the indicators, if properly conceived, can be used to assess progress. Where performance achieved is found to be unsatisfactory, the activity and control systems are then examined to the extent necessary to identify the related causes.
Auditing control systems
This approach is designed to determine whether the Commission and other audited entities have designed and implemented management and monitoring systems so as to optimise economy, efficiency and effectiveness within the given constraints. The audit work will involve analysing, reviewing and testing the key components of such systems. The examination will often consider whether
- measures chosen are consistent with the policy objectives, and whether the latter have been translated into operational plans containing operational objectives, the achievement of which is subsequently measured;
- the operational objectives are realistic, relevant and meaningful;
- the resource are allocated to projects using selection criteria that are consistent with the objectives and likely to provide value for money;
- the systems in place produce relevant, reliable and timely information on the development of financial, human and other resources (inputs), the carrying out of activities (processes) and the delivery of outputs;
- the indicators used properly measure progress towards achieving the objectives;
- the IT systems supporting the management of programmes, projects, etc. deliver actual, accurate, reliable and essential data and information, and to assess whether such data and information are properly used;
- timely and appropriate remedial action is taken, when discrepancies arise, to adjust the operational plan, the deployment of resources and/or the carrying out of activities; or
- evaluation system are of good quality and, when considered to be satisfactory and relevant to the audit objectives, the audit may use evaluation findings, conclusions and recommendations as audit evidence.
[/toc-this]
[/column]
[/row]
[/section-item]
[section-item 3]
[row]
[column 12]
[panel panel-style="boxed" title="Related%20documents" icon="book" class="ref-panel"]
[standards]
[link new-window title="ISSAI%20300%2F26" link="https%3a%2f%2fwww.issai.org%2fwp-content%2fuploads%2f2019%2f08%2fISSAI-300.pdf%23page%3D15" /]
[link new-window title="ISSAI%203000%2F40-44" link="https%3a%2f%2fwww.issai.org%2fwp-content%2fuploads%2f2019%2f08%2fISSAI-3000-Performance-Audit-Standard.pdf%23page%3D13" /]
[link new-window title="GUID%203910%2F50-54" link="https%3a%2f%2fwww.issai.org%2fwp-content%2fuploads%2f2019%2f08%2fGUID-3910-Central-Concepts-for-Performance-Auditing.pdf%23page%3D22" /]
[/standards]
[/panel]
[/column]
[/row]
[row]
[column 12][/column]
[/row]
[row]
[column 12]
[toc fixed="true" selectors="h2%2Ch3" class="basic-toc" /]
[/column]
[/row]
[/section-item]
[/section]
