English

Abstract

  Performance auditing as an audit discipline has developed seriously since the late 1970s. Owing to its developing nature, however, it has been noted that it lacks formal audit methodologies. One of such audit methodology is in the specific design of an audit programme; this is important as the audit programme forms the basis of the audit. This paper presents a methodology for creating an audit programme specifically for performance auditing and further presents this in a model format. To develop this methodology, grounded theory was applied. The audit methodology and model were evaluated against the International Organization of Supreme Audit Institutions (INTOSAI) performance audit standards and were also tested in two private-sector companies. The proposed audit methodology is based on the relationship between process, risk, control and the audit programme; it uses risk-based auditing, and the specific performance audit objectives are inverted to form the primary performance risk; in addition, benchmarks and criteria are included; the model caters for both high-level and detailed information. This methodology and model benefits both performance auditors and business managers.   Key words: Performance audit, audit programme, risk, control, risk-based auditing, efficiency, effectiveness, economy, International Organization of Supreme Audit Institutions (INTOSAI), grounded theory.