Advanced Audit and Assurance (International) · The audit of performance information (pre-determined objectives) in the public sector

Performance Information in the Public Sector and Pre-Determined Objectives

Updated 11 October 2026 · Fact-checked

Performance information is the data a public sector body reports on how well it delivered its pre-determined objectives, which are the goals, targets and indicators set in advance. Auditors assess whether the reported results are useful, reliable and consistent with the plan, then report to users such as legislators, citizens and funders.

Understand Performance Information in the Public Sector

A public sector body does not exist to make profit. It exists to deliver services such as health, roads, education or welfare. So its financial statements alone do not show whether it did its job. Performance information fills that gap.

Pre-determined objectives are the goals an entity sets before the period starts. They are normally set out in a strategic plan, budget or service delivery plan. Each objective should come with indicators (what is measured) and targets (the level to be achieved). For example: objective, reduce waiting times; indicator, average days to see a specialist; target, no more than 30 days.

Performance information is what the entity reports after the period: actual results against those indicators and targets, plus explanations of variances. It is usually published in an annual performance report next to the financial statements.

Why report it? Public bodies spend money raised from taxes and borrowing. They are accountable for it. Reporting results against stated objectives shows whether money bought the promised outcomes. It also supports transparency, comparison between bodies and better decisions on future funding.

Users include legislators and parliamentary committees, oversight and funding bodies, citizens and service users, the media, and management itself. Many public sector audit regimes ask the auditor to give assurance or conclusions on this information, not just on the financial statements.

Know the difference from a financial audit. A financial audit gives an opinion on whether the financial statements are fairly presented. An audit of performance information tests whether reported results are reliable and measured against the pre-determined plan. A broader performance (value for money) audit examines economy, efficiency and effectiveness of how resources were used. Exact requirements depend on the jurisdiction and the mandate, so use the scenario facts.

Key rules to remember

Three Es of value for money: Economy = inputs at lowest suitable cost; Efficiency = outputs ÷ inputs; Effectiveness = outcomes achieved against objectives; Useful for describing what performance audits look at. Do not present them as a calculation unless the question gives data.
Qualities of good performance information: Useful (relevant, understandable, consistent with plan) + Reliable (valid, accurate, complete); Use as a checklist when evaluating reported indicators. Different regimes word these criteria slightly differently, so say what you are applying.
SMART test for objectives and indicators: Specific, Measurable, Achievable, Relevant, Time-bound; A quick way to judge whether an objective or target is well defined.
Chain of results: Inputs → Activities → Outputs → Outcomes → Impact; Helps you separate what the body spends or does from what it actually achieves.

How to solve Performance Information in the Public Sector questions

Use this method for any question on performance information, pre-determined objectives or the public sector context.

1Read the requirement and note the verb: explain, discuss, evaluate, recommend. Note the user group if one is named.
2Identify the entity, its mandate and its stated objectives from the scenario.
3Link each objective to its indicator and target. Spot any that are vague, unmeasurable or changed during the year.
4Classify what is being asked: financial audit point, performance information point, or value for money point.
5Apply the criteria: useful and reliable, SMART, consistency between plan, budget and report.
6Use scenario facts in every point. Name the figure, programme or user from the case.
7Conclude with a clear recommendation or judgement, in the format requested (report, memo, briefing note).

Quickest way: Objective, indicator, user: three-line check

When to use it: When you have little time and need to build a structured answer quickly.

Write the objective in one line, then its indicator and target.
Ask: is it measurable, relevant and consistent with the approved plan?
Ask: who uses it and what decision does it support?
Add one risk to reliability, such as weak records or manual collection.
Close with the audit response or recommendation.

Common mistakes in Performance Information in the Public Sector

Treating performance information as financial information.
Students are used to profit and balance sheet figures, so they look for numbers in the financial statements.
Fix: Remember that performance information measures service delivery against objectives. Use indicators and targets, not profit, in your answer.
Saying financial audit and performance audit are the same thing.
Both are carried out by auditors in public bodies and the terms are used loosely.
Fix: State the purpose of each. Financial audit: opinion on fair presentation. Performance information audit: reliability and usefulness of reported results against plan. Performance audit: economy, efficiency and effectiveness.
Listing generic points about users without applying them.
Memorised lists feel safe and quick.
Fix: Tie each user to a decision. For example, a legislature uses results to decide funding and hold ministers to account.
Accepting objectives as given without judging their quality.
Students assume the plan is correct and only the reported result needs checking.
Fix: Test whether objectives and indicators are specific, measurable and approved in advance. Vague or changed targets weaken the whole report.
Confusing outputs with outcomes.
The words sound alike and scenarios often report activity counts.
Fix: An output is what is produced, such as clinics held. An outcome is the change achieved, such as improved health. Say which the indicator measures.
Ignoring professional skills marks.
Students focus on technical content and write in note form with no commentary.
Fix: Show scepticism, commercial and public interest awareness, and clear communication suited to the audience.

Worked examples

Example 1

A provincial roads agency set a pre-determined objective of improving rural access. Its annual performance report states: 'We held 120 community meetings and graded 2,000 km of road.' It gives no target, no comparison with the plan and no road condition data. Evaluate the usefulness of this performance information.

Show the solution

Identify the objective: improving rural access. This is an outcome, so the indicator should show a change in access or road condition.
Classify what is reported: meetings held and kilometres graded are activities and outputs, not outcomes.
Check against the plan: no target is given, so users cannot judge whether 2,000 km was above or below what was promised.
Check for consistency: the report does not state if these indicators were in the approved plan, so it may not be consistent with it.
Judge usefulness: it is not very useful for legislators or citizens, who need to know if access improved and at what cost.
Recommend: define outcome indicators such as the proportion of rural roads in good condition, set targets, and report actual against target with explanations.

Answer: The information is of limited use. It reports activities and outputs only, has no targets or link to the approved plan, and says nothing about the outcome of better rural access. The agency should add measurable outcome indicators with targets and variance explanations.

Example 2

Explain the difference between a financial audit and an audit of performance information in a public sector body, and identify two groups of users of performance information.

Show the solution

Financial audit: the auditor gives an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable framework and so are fairly presented.
Performance information audit: the auditor assesses whether reported results against pre-determined objectives are useful and reliable, and whether they are consistent with the approved plan.
Point out the different subject matter: money and balances in the first, service delivery results in the second.
Point out the different criteria: an accounting framework for the first, the entity's own objectives, indicators and targets plus suitability criteria for the second.
Users: legislators and oversight committees use results to hold the body to account and decide funding.
Users: citizens and service users use results to judge if the services they pay for are delivered.

Answer: A financial audit gives an opinion on fair presentation of the financial statements against an accounting framework. An audit of performance information tests whether reported results against pre-determined objectives are useful and reliable. Users include legislators or oversight committees, who monitor accountability and funding, and citizens, who judge service delivery.

Exam tips

Always define pre-determined objectives, indicators and targets in a sentence before applying them. It shows you understand the building blocks.
Distinguish three things clearly when asked: financial audit, audit of performance information, and value for money audit. Examiners reward precision here.
Use the scenario's own objectives and figures. A generic answer on public accountability earns little.
Match your recommendation to the user in the requirement, such as a parliamentary committee or the board, and write in the format asked for to earn professional skills marks.
Do not state jurisdiction-specific legal duties as fact unless the scenario gives them. Refer to the auditor's mandate instead.

Practice questions from The audit of performance information (pre-determined objectives) in the public sector

Performance Information in the Public Sector in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Performance Information in the Public Sector: frequently asked questions

What are pre-determined objectives in the public sector?

They are goals, with indicators and targets, that a public body sets and approves before the period begins. They are usually in a strategic or annual plan. Results are later reported against them.

What is the difference between a financial audit and a performance audit in the public sector?

A financial audit gives an opinion on whether the financial statements are fairly presented. A performance audit looks at whether resources were used with economy, efficiency and effectiveness. An audit of performance information sits between them and checks that reported results against objectives are useful and reliable.

Who uses performance information reports?

Main users are legislators, oversight and funding bodies, citizens and service users, and management. They use the reports to hold the body to account and to decide on funding and policy.

Is performance information audit examined in AAA?

The AAA syllabus includes public sector assignments and assurance engagements beyond the financial statement audit. Questions are scenario based, so expect to apply the ideas to a case and show professional skills.