Performance auditing in the public sector
The responsibility of accounting officers

The primary objective of a performance audit is therefore to evaluate management and is substantially different from internal audit which covers governance, risk management and controls. (There can of course be some duplication.)

The concept of performance management and consequently performance auditing is clearly established in legislation in South Africa. The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) established the promotion of the economical procurement of resources and the efficient and effective utilisation of resources as one of the democratic values and principles of public administration. This is further expounded in the Public Finance Management Act, 1999 and the Public Finance Management Act which also promotes public accountability. Public accountability in this instance means that those put in charge of government programmes are held responsible for the economic, efficient and effective running of the programmes.

Seminar objectives
To facilitate understanding of the objectives of performance audit and the value that performance auditing adds (outcome: to be able to identify situations in which a performance audit will add value); and
To transfer knowledge with regard to the performance audit methodology; facilitate understanding of the methodology and performance audit process and to practice writing performance audit report items (outcome: trainees who are skilled to perform the planning, execution and reporting phases of a performance audit)

Who should attend
The course covers the performance audit methodology and should therefore be helpful to new and experienced performance auditors as well as heads of internal audit functions who are interested in expanding their scope of work to include performance auditing.

Seminar content
The seminar will be based on the book "Performance auditing: A step-by-step approach" (Van Schaik) which is based on the approach followed by the South African Institute of Chartered Accountants (SAICA) and the Office of the Auditor - General in South Africa.

The seminar covers the contents of the book:
Day one:
• The legislative framework of performance auditing
• The responsibility of accounting officers
• The mandate of internal and external auditors
• Analysis of the definition and scope of performance auditing
• Defining economy, efficiency and effectiveness
• Defining the broad categories of management measures
• What are effects in the performance auditing context?
• Auditing standards
• Audit working papers and layout of audit file
• Pre-engagement and planning phase including the contact meeting, engagement letter, identifying symptoms and causes, developing audit objectives and criteria and the drafting of a work plan.

Day two:
• General discussion of the execution phase
• Identifying new symptoms and causes
• Identifying the effect or impact
• Testing the criteria that were developed during the execution phase.

Day three:
• General discussion of the reporting phase
• Development of recommendations
• The report format
• Audit evidence
• Project management

Assessment
Case studies are done throughout the course and a variety of multiple choice questions are completed and marked after each session. Crossword puzzles are also used. Trainees are required to write their own report items based on a case study. The report items are presented to the group and discussed.

Model audit file
A CD with a work pack of all the basic documents required for a performance audit is available to participants for copying.

Your expert facilitator:
Jeanne Prinsloo is a highly regarded and experienced performance auditor, trainer and published writer on performance auditing. She holds the B Proc, B Comm and LLB). She co-authored the book "Performance Auditing: A step-by-step approach" which was published by Van Schaik Publishers in 2006. She has written two articles for the official journal of the Institute of Internal Auditors, the IA Advisor, covering aspects like the legal mandate for performance auditing and the difference between internal auditing and performance auditing. Jeanne creates synergies between her in-depth knowledge of the public sector where she spent approximately twenty years of her career, her auditing background which she obtained while working for the Office of the Auditor-General as performance auditor and trainer and her qualifications in commerce and law. Jeanne provides performance auditing serves to the public sector through her company Pro Publico Consultancy. She is a member of the Institute of Internal Auditors.

Venue

Date: 07 May 2008 to 09 May 2008
Location: Hotel Apollo, Randburg

Contact: Hennie Oosthuizen
Company name: African Information Institute
Telephone number: +27 11 7811155
Email address hennie@aii.co.za

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