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The first and third of these aspects are consistent with the focus and purpose of<br />
performance auditing. However, performance auditing considers a broad range of subject<br />
matter and can contribute <strong>to</strong> all aspects of the mission of internal auditing. For example:<br />
<br />
<br />
<br />
Operational information relates closely <strong>to</strong> efficiency and effectiveness.<br />
Safeguarding of assets has a strong link with the principle of economy.<br />
Compliance with laws, regulations, policies, and other authorities is often a key<br />
consideration in performance auditing.<br />
The following table summarizes the main similarities and differences between the<br />
performance audits conducted by internal audi<strong>to</strong>rs and SAI external audi<strong>to</strong>rs.<br />
Primary<br />
Characteristics<br />
Relevant<br />
professional<br />
standards<br />
Relevant<br />
competencies<br />
Mandate<br />
Primary<br />
accountability<br />
Purpose of<br />
performance<br />
auditing<br />
Type of audit<br />
Scope<br />
Methodology<br />
Criteria<br />
<strong>Performance</strong> <strong>Audit</strong>ing<br />
Internal <strong>Audit</strong><br />
External <strong>Audit</strong> (SAI)<br />
Manda<strong>to</strong>ry and recommended General and specific principles,<br />
elements of The IIA’s<br />
standards, and guidance of<br />
International Professional INTOSAI’s International<br />
Practices Framework (IPPF) Framework of Professional<br />
applicable <strong>to</strong> all audits.<br />
Pronouncements (IFPP)<br />
comprising principles (INTOSAI-<br />
P), standards (ISSAIs) and<br />
guidance (GUIDs).<br />
Defined by The IIA’s Internal<br />
<strong>Audit</strong> Competency Framework.<br />
Defined by INTOSAI’s<br />
Competency Framework for<br />
Public Sec<strong>to</strong>r <strong>Audit</strong> Professionals<br />
at Supreme <strong>Audit</strong> Institutions.<br />
Defined in the Internal <strong>Audit</strong> Defined in legislation.<br />
Charter and/or legislation.<br />
To the governing body and To parliament and the public.<br />
senior leadership of an individual<br />
entity or group of entities.<br />
To determine whether public funds have been used with economy,<br />
effectiveness, and efficiency, and identify opportunities for<br />
improvement.<br />
Assurance. 6 While performance audits are assurance engagements,<br />
audi<strong>to</strong>rs may be asked <strong>to</strong> provide advisory services. This is formally<br />
within the mandate of internal audi<strong>to</strong>rs and is increasingly regarded<br />
as part of the role of external audi<strong>to</strong>rs as well.<br />
Activities, programs, processes,<br />
and systems of an individual<br />
entity or group of entities.<br />
Determined by the audi<strong>to</strong>r.<br />
Activities, programs, processes,<br />
systems, and entities across the<br />
public sec<strong>to</strong>r.<br />
Determined by the audi<strong>to</strong>r, supported by standards, guidance,<br />
policies, manuals, and handbooks.<br />
Determined by the audi<strong>to</strong>r, supported by standards, guidance,<br />
policies, manuals, and handbooks.<br />
6<br />
Referred <strong>to</strong> as a “direct reporting engagement” by external audi<strong>to</strong>rs as the <strong>to</strong>pic, scope,<br />
objectives, and criteria are selected and defined by the audi<strong>to</strong>r.<br />
8