Module 4 - Introduction to Performance Audit_4B

characteristics depending on the audit objective. An appropriate subject matter is
identifiable and capable of consistent evaluation or measurement against the criteria,
such that it can be subjected to procedures for gathering sufficient and appropriate
audit evidence to support the audit opinion or conclusion. 37
19) The subject matter of a performance audit need not be limited to specific
programmes, entities or funds but can include activities (with their outputs, outcomes
and impacts) or existing situations (including causes and consequences). Examples
might be service delivery by the responsible parties or the effects of government
policy and regulations on administration, stakeholders, businesses, citizens and
society. The subject matter is determined by the objective and formulated in the audit
questions. 38
30) The subject matter relates to the question “what is audited” and is defined in the audit
scope. The subject matter of a performance audit may be specific programmes,
undertakings, systems, entities or funds and may comprise activities (with their
outputs, outcomes and impacts) or existing situations, including causes and
consequences. The audit scope is the boundary of the audit and is directly tied to the
audit objectives. The audit scope defines the subject matter that the auditor will
assess and report on, the documents or records to be examined, the period
reviewed, and the locations that will be included. 39
Topics for performance engagements are identified in the context of the assurance
provider’s planning processes. The Performance Audit ISSAI Implementation Handbook
provides an example framework for identifying important topics for performance audits,
summarized below.
Activity
Scanning the public
sector environment
Reviewing official
announcements
Financial analysis
Media monitoring
Description
Monitoring key issues in the public sector.
Monitoring official announcements and publications, including:
National sustainable development goals.
Resolutions by the Committee on Public Accounts or equivalent.
State of the nation or parliamentary opening speeches by the
head of state.
Legislation and legislative proposals.
National budgets and guidelines.
Other public policy documents.
Annual reports of audited entities.
Global developments, such as themes identified by INTOSAI.
Paying close attention to:
Complex financial arrangements.
New sources of income and expenses.
Areas where spending is high or changing rapidly.
Monitoring a wide range of media to identify concerns about public
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ISSAI 100 Fundamental Principles of Public Sector Auditing, INTOSAI, 2019.
38
ISSAI 300 Performance Audit Principles, INTOSAI, 2019.
39
ISSAI 3000 Performance Audit Standard, INTOSAI, 2019.
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