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

When auditing a university's reported performance indicator 'graduate employment rate within six months', the auditor finds that the survey used to compile it had a 20% response rate and non-respondents were excluded from the calculation. Which audit consideration is most relevant to the reliability of the reported indicator?

The key consideration is whether the low-response survey is representative and whether the methodology and its limitations are disclosed. A 20% response rate creates non-response bias risk, so the reported employment rate may be misleading. Fees, paper type and enrolment trends do not affect the indicator's reliability.

  1. AWhether the sample is representative, and whether the methodology and its limitations are disclosed alongside the reported resultCorrect
  2. BWhether the university's tuition fees are comparable to those of other universities
  3. CWhether the survey was printed on recycled paper
  4. DWhether the number of students enrolled has increased compared with last year

Explanation

A low response rate creates a risk of non-response bias, so the reported rate may not reflect all graduates. The auditor assesses whether the method is appropriate, applied consistently and adequately disclosed. Fees, paper type and enrolment growth do not bear on the reliability of this indicator.

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