The performance audit : are there differences in the planning approach and practices followed within the South African public sector?

Abstract

The importance of a formal, documented approach and methodology as part of the audit process is wellrecognised. In South Africa, only a few national departments have dedicated performance audit sections within the Internal Audit Function (IAF), and limited performance audits are being conducted. The limited execution of performance audits and the lack of information on performance audit methodologies adopted within the public sector by IAFs prompted this research. The research objective was to identify the differences in the performance audit planning practices followed by internal auditors within the South African public sector, as well as the reasons behind these differences, by critically comparing the performance audit methodologies within the IAFs in selected national departments with the methodology followed by the AGSA. The results indicated that, although differences do exist between the performance audit planning practices of these institutions and those of the AGSA, numerous similarities also exist. Research on the different planning activities prescribed by the methodologies adopted by national departments and the AGSA provides valuable information that may contribute to the growth of the performance audit discipline in the public sector and could enable the performance audit process itself to become more effective and efficient. It is recommended that national departments and the AGSA consider these differences and the rationale behind these differences when compiling or updating their performance audit methodology.