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ACCA Strategic Professional · Strategic Business Leader · Public sector governance

A national audit office reviews whether a government agency's spending achieved its objectives economically, efficiently and effectively, and publishes its findings to the legislature. Which type of review is this, and what stakeholder relationship does it support?

This is a value-for-money audit, which tests economy, efficiency and effectiveness. By reporting to the legislature, the audit office supports parliamentary oversight of the executive, strengthening accountability for how public money is used and giving citizens indirect assurance.

  1. AValue-for-money audit, supporting the legislature's oversight of the executiveCorrect
  2. BStatutory financial audit only, supporting shareholders' returns
  3. CInternal quality review, supporting the agency's management only
  4. DTax compliance inspection, supporting the revenue authority

Explanation

Assessing economy, efficiency and effectiveness is value-for-money (performance) auditing. Reporting to the legislature supports its oversight of the executive, which is a key accountability relationship in the public sector. It goes beyond a financial audit, is external not internal, and is not a tax inspection.

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