The Audit Of Performance Information In The Public Sector

Question 1

What are the main criteria is for the order of performance information in the public sector

Answer 1

Effectiveness
Efficiency
Economy

Question 2

How do the three Es Relate to audit

Answer 2

From the audit perspective this means that auditors will have to treat performance information with a high degree of scepticism. There will be management bias to show good results not only to maintain or influence funding but also counsellors retaining their posts.

In other words a lot of performance information may be available for maybe produced to meet three objectives above (improvements, monitoring, reporting) not because there is a standard i.e. IFRS which requires production in a specific format. Compatibility between different information providers e.g. a council or school will be difficult as the actual information produced will be different

Question 3

What are the objectives within performance information

Answer 3

Improvements-target assets and performance measured against those targets are trying determine how management can be improved

Monitoring-performance information is used to report on the achievement of targets. In this sense, local governments may have to report back to central governments to retain the necessary funding for next year‘s budget

Reporting-including performance information in a council or the external reports partly as a means show progress against targets or so as a means of advertising how well thr targets have been met

Question 4

What are the two types of audits in the public sector

Answer 4

Performance audits-this “value for money “audit examines efficiency and effectiveness having regard for economy. If focuses on government policy or management processes and its main aim is to lead to improvements.

Audit of performance information – this provides assurance that the performance reported against predetermined objectives is reliable, accurate and complete and focus on:

Data reliability – is it accurate?

Content quality – is it relevant comparable and verifiable

Compliance with reporting requirements-is the report Clear ?

Question 5

What are some order procedures for performance information in the public sector

Answer 5

Test of controls on the system is used to generate performance information

Performing analytical reviews to evaluate trends

Discussion with management of the responsible for the reporting process of problems both with performance and it’s adequate recording

Review of minutes of meetings where performance information has been discussed E.g. council meetings

Inspection of performance information source documentation

Recalculation of quantitive performance information measures