6.5 Audit of performance information (predetermined objectives) in the public sector

Audit of performance information in the public sector involves assessing the reliability, accuracy, and completeness of performance data and evaluating whether predetermined objectives are achieved. Here’s an overview of the audit process for performance information in the public sector:

1. Understanding Predetermined Objectives: The auditor gains a thorough understanding of the predetermined objectives established by the public sector entity. These objectives could include targets related to service delivery, efficiency, effectiveness, and outcomes.
2. Assessing Performance Measurement Systems: The auditor evaluates the performance measurement systems used by the public sector entity to track and report on progress towards predetermined objectives. This includes examining the processes, methodologies, and systems used to collect, analyze, and report performance data.
3. Risk Assessment: The auditor assesses the risks associated with performance information, including the risk of material misstatement or misrepresentation. This involves identifying inherent risks, control risks, and detection risks that may impact the reliability of performance data.
4. Testing and Verification: The auditor performs procedures to test the accuracy, completeness, and validity of the performance data. This may involve examining supporting documentation, performing data analysis, conducting interviews with relevant personnel, and conducting site visits or inspections.
5. Comparing Actual Performance to Predetermined Objectives: The auditor compares the actual performance data with the predetermined objectives to assess whether the targets have been met. This includes evaluating the consistency and alignment of reported performance information with the established objectives.
6. Reviewing Controls and Processes: The auditor evaluates the internal controls and processes in place for collecting, recording, and reporting performance data. This includes assessing the design and operating effectiveness of controls to ensure the integrity and reliability of the information.
7. Reporting Findings and Recommendations: The auditor prepares an audit report that includes the findings from the audit of performance information. This report highlights any discrepancies, weaknesses, or areas of non-compliance with predetermined objectives. The auditor may also provide recommendations for improvement in the performance measurement systems and processes.