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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 regional housing agency has the objective 'increase affordable housing' and the indicator 'number of affordable homes completed', with a target of 500 homes and a clear definition of 'affordable'. The auditor concludes the criteria are suitable. Which additional feature would most strengthen the auditor's ability to evidence the reported result?

A documented data source and calculation method supported by completion records would most help. It lets the auditor trace and re-perform the reported figure and test accuracy and completeness, whereas vague targets, ministerial narrative or unrelated comparisons give no verifiable evidence.

  1. AA target stated only as 'significant improvement'
  2. BA documented source and calculation method, with records supporting completionsCorrect
  3. CA narrative by the minister praising the programme
  4. DA comparison with an unrelated agency's budget

Explanation

Criteria are only useful if reported results can be verified. A documented data source and calculation method allow the auditor to test completeness and accuracy against records. Vague targets, narrative praise and unrelated comparisons do not provide evidence.

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