ACCA Strategic Professional · Advanced Audit and Assurance (International) · The audit of performance information (pre-determined objectives) in the public sector
The Department of Rural Water reported in its annual performance report that it 'improved access to clean water in underserved communities'. Its approved plan stated a target of 'connecting 12,000 households to piped water by 31 March'. Which usefulness criterion has the report most clearly failed?
The report fails the consistency criterion. The plan set a measurable target of connecting 12,000 households by 31 March, but the report gives only a vague statement about improved access. Reported performance must match the planned indicators and targets, so the auditor would raise a usefulness finding.
- AReliability, because the number of connections cannot be recounted
- BConsistency, because the planned indicator and target were not reported on in the form originally setCorrect
- CTimeliness, because the report was issued after year end
- DCost-effectiveness, because the water cost per household is not shown
Explanation
The plan set a specific, measurable indicator and target, but the report replaced it with a vague statement. This breaks consistency between planned and reported performance. Reliability concerns accuracy of reported data, which cannot be judged when no figure is reported, so it is not the primary failing here.
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