3. Planning a Performance Audit - You have been assigned to a performance audit of a...

3. Planning a Performance Audit - You have been assigned to a performance audit of a local government, focused on compliance with requirements for state grant funds. Assume that you are just beginning to plan your audit. Considering guidance in the GAO’s Yellow Book, summarize some of the most important steps you should take in this Planning phase of your audit.

Expert Solution

Performnce audit is done to see the goverment program has achieved desired objectives at lower cost and given intended benefits .

Usually performance audit is done for Public sector undertaking, public accounts,local goverment or scheme or fund granted by the state goverment.

while planning Performance audit some of the steps taken in planning pases are ;

1) Result-Oriented Approaches- Auditors verify programmatic achievement and assess whether they have been reached with due consideration of economy,efficiency,effectiveness which is to be intended to be while granting the funds.

2) Problem -oriented approaches-Auditor analyses root causes of problems while applying the funds to different sector or different class of person, examine short-coming in program implementation design or process that prevented achivement of objectives .Also relate to particular process or activity.

3) System-oriented approsches -Examine adequate functionning of management regarding effective utiliazation of fund and management is responsible to see that fund shall utilize in manner as per scheme auditor make sure it.

Performance audit particullary beneficial for grant presenting performance challenges at program or activity level or when state fund would likely to have deeper under standing system functioning and/or grant implentation.

ekkarill92 answered 2 years ago

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