Certificate in Performance Audit Fundamentals course content

This module introduces core functions of the public sector and the importance of governance to protect the interests of citizens and ensure officials can be held to account. Public finances are central to public sector activity, although other significant public assets are managed and deployed on behalf of society. Public value is measured in terms of social, economic and physical well-being. Resources are limited and their application must be prioritised and managed with due diligence, taking account of risk and the need for appropriate control.

This module examines the contribution of auditing to governance by ensuring all activities conducted on behalf of the public through the application of public resources remain within the oversight of those who are accountable. External and internal auditors have complementary but distinct roles in providing transparency, supporting improvement and enabling true accountability. Their activities are defined by globally recognised professional pronouncements of INTOSAI and The IIA. All auditors follow broadly similar processes for planning, executing, reporting and monitoring. The rigorous application of ethical and professional standards is vital for the quality of the work and confidence in the reported results.

This module provides an exploration of the conceptual foundations and practical considerations for performance auditing, including international standards and best practice, main differences between performance audit and other audit types, key skills and competencies and principles for quality control and quality assurance. There are significant considerations an auditor must make as part of the planning, executing, reporting and monitoring phases of a performance audit and these are described in detail. The focus on the so-called 3Es – economy, efficiency and effectiveness – is a consistent thread alongside other factors such as materiality and audit risk.

PSG 1 Public sector activities

PSG1.1 The public sector

PSG1.2 Key functions in the public sector

PSG1.3 Key roles and responsibilities in the public sector

PSG 2 Public sector governance

PSG2.1 Public sector governance

PSG2.2 Accountability, uncertainty and transparency

PSG2.3 Principles of good governance

PSG 3 Public financial management

PSG3.1 Public financial management

PSG3.2 Principles of public financial management

PSG3.3 Nonfinancial value

PSG 4 Risk management

PSG4.1 Risk management

PSG4.2 Principles and standards of risk management

PSG4.3 Risk management in the public sector

PSG 5 Internal control

PSG5.1 Internal control

PSG5.2 Structures and processes for internal control

PSG5.3 Internal control in the public sector

PSG 6 Public sector auditing

PSG6.1 Public sector auditing

PSG6.2 The contribution of auditing to public policy

PSG6.3 Emerging issues for the public sector

PSA 1 Public sector governance

PSA1.1 Characteristics of the public sector

PSA1.2 Public sector governance structures and processes

PSA1.3 The accountability chain

PSA1.4 The need for transparency

PSA 2 Public sector auditing fundamentals

PSA2.1 Public sector auditing

PSA2.2 The roles of internal and external auditors

PSA2.3 Common elements for internal and external auditing

PSA2.4 The impact of the public sector environment on auditing

PSA2.5 The impact of auditing on the public sector

PSA 3 Principles and standards of public sector auditing

PSA3.1 Common principles for internal and external auditing

PSA3.2 The INTOSAI Framework of Professional Pronouncements

PSA3.3 The IIA`s International Professional Practices Framework

PSA3.4 Other frameworks, principles and standards

PSA 4 Public sector audit processes

PSA4.1 Types of audits

PSA4.2 Audit objectives

PSA4.3 Audit processes

PSA4.4 External audit processes

PSA4.5 Internal audit processes

PSA 5 Organisational requirements for public sector auditing

PSA5.1 Common organisational requirements for internal and external auditing

PSA5.2 Organisational requirements for SAIs

PSA5.3 Organisational requirements for other external auditors

PSA5.4 Organisational requirements for internal audit functions

PSA5.5 Audit mandates and charters

PSA 6 Confidence and assurance in public sector auditing

PSA6.1 Audit quality control

PSA6.2 Transparency of public sector auditing

PSA6.3 SAI transparency and accountability

PSA6.4 Internal audit accountability

PSA6.5 Assurance

PSA6.6 Levels of assurance

IPA 1 Performance audit basics

IPA1.1 Performance audit

IPA1.2 International performance audit standards

IPA1.3 Authority to conduct performance audits

IPA1.4 Required skills for performance audits

IPA1.5 Key differences between performance audit and other types of public sector audit

IPA1.6 The 3Es of performance audit

IPA1.7 Applying the 3Es in performance audit

IPA1.8 Additional considerations in performance audit

IPA 2 Key principles of performance audit

IPA2.1 Ethics and independence

IPA2.2 Professional judgment and scepticism

IPA2.3 Performance audit quality control and quality assurance

IPA 3 The performance audit process – planning

IPA3.1 Performance audit topic selection

IPA3.2 Phases in a performance audit

IPA3.3 Performance audit objectives

IPA3.4 Scoping the audit

IPA3.5 Performance audit criteria

IPA3.6 Project planning

IPA 4 The performance audit process – conducting phase

IPA4.1 External communication

IPA4.2 Communicating with the audit team

IPA4.3 Types of analysis

IPA4.4 Evidence in performance audit

IPA4.5 Types of evidence

IPA4.6 The need for sufficient appropriate evidence

IPA4.7 Performance audit documentation

IPA 5 Performance audit reporting

IPA5.1 Performance audit findings

IPA5.2 Audit conclusions

IPA5.3 Recommendations

IPA5.4 Reporting

IPA5.5 Post reporting