Abstract
This study aims to present the conceptual framework of performance audits impact that support our investigation of the process of selection performance audit topics at Supreme audit institutions (SAIs) level. The results of the study include the technique for choosing performance audit topics used by the Lithuanian SAI and the SAI of the Netherlands. The data were gathered using case studies and semi-structured in-depth interviews with the field experts. The results of the study demonstrated a range and the complexity of the arguments underlying the selection of the topic for performance audits: there are no mandatory requirements or standards governing the process; therefore, every SAI chooses its own path. Each SAI applies specific performance audit topics selection methods determined by their original long-term practical experience. Selecting right topics for performance audit is a task of crucial importance for each SAI. Gathering information about all areas and making a decision where to perform an audit is an important part of strategic research efforts. Data collection is a lengthy process that takes place throughout the year. Each SAI has a framework for strategic and annual planning that has clearly set deadlines, uses a transparent qualified and/or quantified approach to ranking risks/audit proposals, and is based on the criteria relating to materiality, topicality, feasibility and added value.
Highlights
Performance audit is a government review process that covers a broad range of activities, which can be approached in many ways (Gomes 2001, Kim et al 2017)
Review of numerous research papers and a number of empirical studies carried out by Put and Van Loocke (2011), Pollitt (1999), Funkhouser (2011), Lonsdale (1999a, 1999b, 2011b), Johnsen (2019) et al have produced comparable results concluding that changes at the micro level can lead to changes at the meso level, and further cause changes at the macro level
The findings of various empirical studies carried out in the area reveal performance audit topic selection strategies including the techniques used by the Lithuanian and Dutch Supreme audit institutions (SAIs), demonstrate the range and complexity of arguments underlying the selection of topics for performance audit
Summary
Performance audit is a government review process that covers a broad range of activities, which can be approached in many ways (Gomes 2001, Kim et al 2017). An institutional approach to performance audit is a useful way to show an empirical angle of a performance audit. The choice where to perform financial audit is usually fairly straightforward, or in certain cases such audit may be mandatory, as financial audits focus on public sector financial accounts; in the meantime, areas for selecting the topics for performance audit are much more complex. The study aims to present the conceptual framework of performance audits impact that support our investigation of the process of selection of performance audit topics at Supreme audit institutions (SAIs) level. Part 1 presents the conceptual framework of performance audit impact and contains a theoretical analysis of choosing performance audit topic, presents the hypothesis formulated for the purpose of the study.
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