ACCA Strategic Professional · Advanced Audit and Assurance (International) · The audit of performance information (pre-determined objectives) in the public sector
The audit team of a national transport agency is planning an engagement on the agency's reported performance against its pre-determined objectives. Which of the following best describes what the auditor is primarily asked to conclude on in this engagement?
The auditor concludes on whether reported performance information is useful and reliable and consistent with the pre-determined objectives in the approved plans. It is not a financial statements opinion, a full value-for-money judgement, or an opinion on whether policy objectives were wisely chosen.
- AWhether the reported performance information is useful and reliable, and is consistent with the objectives set in the agency's approved plansCorrect
- BWhether the agency's financial statements give a true and fair view of its financial position
- CWhether the agency's management has achieved value for money in every programme it runs
- DWhether the agency's objectives were the most appropriate ones that the government could have chosen
Explanation
Audits of performance information against pre-determined objectives focus on whether reported results are useful (consistent with planned objectives, measurable, relevant) and reliable (accurate, complete, verifiable). A financial statements opinion is a separate engagement. The auditor does not judge whether policy objectives were the best choice, which is a matter for government.
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