Value-for-money audit in the auditor general's office

Abstract

The study attempts to give a general insight into value-for-money audit conducted by the Auditor General's Office (AGO) and to evaluate how well it is meeting its objective of ensuring economy, efficiency and effectiveness in the operations of the audited parties. Several recommendations were also raised at the end of the study in the hope that it would improve the value-for-money audit practiced by the AGO. Interviews conducted with the AGO provided the necessary information for the analysis of value-for-money audit methodology and practices. Questionnaires were also distributed to the audited parties to obtain insights into the conduct and effectiveness of the .-value- for-money audit as well as the auditees' opinion on and their satisfaction with the AGO's audits. A main weakness identified was the lack of agreement between the AGO and the auditees on the use of suitable performance measures in the course of the audit. It is believed that if the auditors can develop performance measures that are deemed reasonable and are able to back them with the relevant data, their use would be more acceptable and their contribution to the audits will be enhanced. In the recommendations, proposals were raised which covered areas that included monitoring arrangements, information systems, performance measures and working relationships. It should be noted that the interpretation of the results and the recommendations is to be confined within the scope of value-for-money audit performed by the Auditor General's Office.