ACCA AAA · Chapter 31
Audit of performance information in the public sector
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Three Es, reliable measures and assurance reporting
Public performance criteria, reliable data, reporting
Performance information
- Measures public service results against objectives
- Used to monitor, improve and report performance
- Funding or reputational incentives create bias
Three criteria
- Effectiveness: were objectives achieved?
- Efficiency: how well inputs become outputs?
- Economy: right quality/quantity at best cost
- Compare indicators with targets and benchmarks
Comparability
- Measures and criteria can vary between bodies
- Check definition, reporting period and consistency
Performance audit
- Value-for-money review of efficiency/effectiveness
- Has regard to economy; seeks improvements
Audit of performance information
- Assurance on information against stated objectives
- Test accuracy, completeness and data systems
- Assess relevance, comparability and verifiability
- Assess clarity, timeliness and perverse incentives
- Check reporting requirements and explanations
Scepticism
- Challenge favourable reporting and omitted poor results
Five stages of production
- Define measurable objective
- Form indicators: specific, measurable, achievable
- Relevant and time-bound (SMART)
- Collect data → analyse → report
Audit procedures
- Understand system and test collection controls
- Inspect source records and independent evidence
- Recalculate indicators and summary statistics
- Analyse trends, complaints and prior results
- Enquire of managers and read meeting minutes
Follow through
- Assess whether findings support recommendations
Identify scope
- Independent title/addressee, subject and criteria
- Identify audited pages and responsible parties
- Explain work and relevant limitations
Conclusion
- Reasonable or limited assurance as agreed/required
- Modify for material misstatement or scope limitation
- Distinguish conclusion from findings/recommendations
Evaluate
- Data reliability and information quality
- Reporting compliance and the effectiveness of controls
- Whether stated performance is supported by evidence
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