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

A public sector body reports that 92% of building permits were issued within 20 working days. The auditor notes that the figure comes from a spreadsheet maintained manually by one officer, who also approves permits. Which audit response best addresses the risk to the reliability of this evidence?

The best response is to agree a sample of permit dates to source documents and recalculate the percentage from the full population. The data is manually compiled by someone with conflicting duties, so independent, source-based evidence is needed. A representation from the same officer is not sufficient on its own.

  1. AAccept the figure because the officer is a senior public servant
  2. BSelect a sample of permits and agree application and issue dates to source documents, and recalculate the percentage from the full populationCorrect
  3. CAsk the officer to confirm in writing that the percentage is correct
  4. DCompare the percentage to the target and conclude if it exceeds it

Explanation

Manual compilation by an officer with conflicting duties raises risk of error or bias. Vouching dates to source records and recalculating from a complete population gives reliable, externally generated evidence. A written confirmation from the preparer is internal and not independent, so it is weak corroboration.

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