A performance audit reviews the purposefulness of central government finances, ensuring that state funds are used in an economical, efficient and influential manner. Performance audits are only conducted for activities in which significant amounts of state funds are used or which have a significant impact on the state’s profit, expenditure or assets.
Themes of performance audits are selected in NAOF’s annual audit plan. NAOF conducts 12–15 performance audits each year.
Scope of performance audits
Often, performance audits are conducted for activities that are carried out by several central government authorities together. Audits may also be targeted outside the central government, at recipients of state or other financial subsidies.
Performance is difficult to assess. Usually, it is assessed whether financial management in the entity being audited offers sufficient opportunities for productivity. As a result, audits may focus on how well activities have been organised.
The scope of performance audits includes:
operational guidance and management
operational results and impact
productivity and efficiency of operations.