needs of this wide range of stakeholders. Different stakeholders have different needs, for example patients may focus on the effectiveness of a certain medical procedure, whereas management may focus on the cost of providing that procedure. Therefore a very wide range of performance information may be required yet it would be pointless to set targets and produce performance information on an issue which is not relevant to any stakeholder. The audit of performance information It is worth reiterating the difference between the audit of performance information and performance auditing as both are likely to occur in the public sector. Candidates are reminded that the audit of performance information is concerned with the audit of reported performance information against predetermined objectives. The auditor’s role here is usually to report on the credibility, usefulness and accuracy of the reported performance. Performance auditing is related to the evaluation of how the public sector body is utilising resources and often focuses on determining how the public sector body is achieving economy, efficiency and effectiveness, sometimes referred to as value for money auditing. It is the former that is the focus of this area of the P7 syllabus. In some jurisdictions it is part of the audit requirement for public sector organisations that the auditor should report on performance information. In jurisdictions where this is not a requirement, the auditor may be asked to perform a separate engagement to the financial statement audit, the objective of which is to report specifically on the performance information. In either case, the auditor will need to plan procedures in much the same way as in a conventional audit scenario. Candidates are therefore encouraged to apply their existing knowledge of audit planning (risk assessment) and 35
AAA Technical Articles evidence gathering techniques to this type of information. The auditor is still looking to ultimately report on the validity of the information included in this respect. The auditor may find the principles of ISAE 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information provide a useful framework for planning and performing the work on performance information. As with any engagement to provide assurance, this would likely start with an understanding of the entity to ensure knowledge of the predetermined performance measures, an evaluation of the systems and controls used to derive and capture the performance information and also performing substantive procedures on the reported measures. The auditor will also need to understand the rationale behind the measures that are being reported on, considering the relevance and suitability of them in terms of the objectives of the public sector organisation in order to help assess the usefulness of the information being provided.
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- Fall '19