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

An auditor is engaged to report on a government agency's performance information against its pre-determined objectives. Which of the following best describes what the auditor is primarily asked to conclude on?

The auditor concludes on whether the reported performance information is useful and reliable and consistent with the objectives set in the agency's planning documents. The audit tests reporting quality against pre-determined objectives; it does not assess whether the objectives themselves were wise policy choices.

  1. AWhether the reported performance information is useful and reliable, and consistent with the objectives the agency set in its planning documentsCorrect
  2. BWhether the agency's objectives were the most economically efficient choices available to government
  3. CWhether the agency's budget was approved by the legislature before the year began
  4. DWhether each employee met their individual performance targets

Explanation

An audit of pre-determined objectives tests whether reported performance information is useful (consistent with planned objectives, measurable, relevant) and reliable (accurate, complete, valid). It does not judge the merit of the policy objectives themselves. The efficiency option confuses the audit with a policy review, which auditors do not perform.

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