Performance Audit: A Cross-Country Comparison of Practices of Selected Supreme Audit Institutions

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.

Does Auditor’s Attributes Impact on Professional Judgement in a Financial Audit? Empirical Evidence From Myanmar Sai

“…In the earlier research mentioned, several key factors influence professional judgment, including audit environment, audit evidence, decision process, and qualitative features of judgment. Also, knowledge, experience, honesty, independence, commitment to ethical principles, professional skepticism are the most important personal features effective in professional judgment in audit (Halim et al, 2018;Vasiliauskienė & Daujotaitė, 2019). The judgment process includes some components that influence on judgment process.…”

“…An elderly auditor leads to lower physical ability, but otherwise, experience and stability of emotions can be higher. This means that older auditors are more willing to accept reality, have a more positive attitude towards work, and perform better (Vasiliauskienė & Daujotaitė, 2019). Older auditors are also considered less flexible and reject new technologies.…”

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“…Taxpayers, users, and citizens usually have different interests: this is why the concept of efficiency was developed to reconcile these different perspectives (Torres et. al., 2019;Vasiliauskienė and Daujotaitė, 2019;Gusarov, 2020). Public and private organisations have different flexibility (Łąka et al, 2020).…”