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

The audit office of a national government is engaged to report on performance information published by the Ministry of Roads, which sets out progress against its pre-determined objectives. Before accepting the engagement, the audit team assesses whether the criteria against which the information will be measured are suitable. Which characteristic is MOST essential for the criteria to be suitable?

Criteria are suitable when they are relevant, complete, reliable, neutral and understandable, allowing consistent measurement of performance against pre-determined objectives. Convenience, unchanged prior-year criteria or criteria fixed after the results are known do not provide a sound basis for evaluation.

1. AThey are relevant, complete, reliable, neutral and understandable, so that they allow consistent measurement or evaluationCorrect
2. BThey are the criteria that management finds easiest to measure at the lowest cost
3. CThey are the same criteria that were used by the ministry in the prior year, regardless of any change in objectives
4. DThey are criteria set by the audit team after year end so that they match the results achieved