A performance audit examines the effectiveness, economy, and efficiency of a government program or agency. It assesses if resources are being managed properly and accountability requirements are met. A performance audit reviews employee performance against goals, measures efficiency, effectiveness, and economy, and identifies what is and is not working. The process involves project selection, planning, conducting the audit, reporting findings, and follow up to ensure recommendations are implemented.

1. By Mounika Ramachandruni

2. Introduction
• Performance audits typically examine the effectiveness,
economy or efficiency of a government program.
• Auditors might analyse the services of an entire agency
or division, compare actual agency practices against the
practices called for in law or policy, seek possible cost
savings, or identify the outcomes achieved by a
program or service.

3. Definition
• "Performance auditing is an assessment of the
activities of an organisation to see if the resources
are being managed with due regard for economy,
efficiency and effectiveness and accountability
requirements are being met reasonably."

4. Meaning
• A performance audit typically reviews the
employee’s performance against the expected goals
or objectives of goal description.
• It is a tool used to determine what is working and
what is not working.
• It measures the efficiency, effectiveness and
economy for an employee.

5. Objectives :
• To provide clear view of people view performance
• To provide clear picture of how people think the system
should change
• “Gap analysis” that shows graphically what is working
and what is not working.
• To prepare questionnaire process that is cost-effective
and time efficient , designed by in-house personnel.

6. Constituents
Economy
• Focus on input
Efficiency
• Focus on output
Effectiveness
• Focus on effectiveness

7. Relation between 3 E s

8. Process
Project
Selection
Planning
ConductingReporting
Follow-Up

9. Project Selection
• It includes the process we use to choose topics
included in the Performance Audit Coverage Plan and
the preliminary work with the organization to
determine the focus of the audit.
• During this phase, you will be asked to assist the audit
team in making arrangements for access to staff, and
documents.

10. Planning
• . During the planning phase, the team will continue to
gather information to develop the audit plan. Through this
process the audit team discusses the audit’s purpose,
timeline, scope and criteria with your organization.
• At the end of this process, the head of the organization
review a summary of the audit plan and acknowledge that
the organization is responsible for the subject matter of the
audit.

11. Conducting
• At the end of this phase, the audit team discusses their
findings and conclusions with the organization.
• It also request that the organization confirm that the
audit team has received all the evidence requested
and/or would impact the audit findings and conclusions

12. Reporting
• At the end of the audit ,audit team will produce a
formal draft report. Organization will have the
opportunity to review and discuss the draft and
prepare a response for inclusion in the final
version.
• The Minister receives the final report at least seven
days before the Speaker tables it with the
Legislative Assembly. Once tabled, it is posted on
our website.

13. Follow –up
• Organization will be requested by the Select Standing
Committee on Public Accounts (PAC) to prepare an
action plan for implementing the recommendations.
• In addition it will be asked for an annual update of this
plan until all the recommendations are implemented.
• Therefore it is important that the action plan is an
accurate assessment of progress