The Assembly recognises that:

1. With the increased pace of economic and social development, and with the rapidly expanding and diversifying government spending, the dimensions of public accountability have now extended over wider horizons;
    

2. Public awareness on, and pressure for economic, efficient and effective government operations with relative increases in demand for accountability have been rapidly growing;
    

3. To add value in such an environment is a major challenge for SAls. From their unique position of being able to look across all agencies in the public sector, SAls are well placed to make a significant contribution to the development and implementation of public sector reforms. Performance auditing plays an essential role in promoting economic, efficient and effective administration of public sector agencies.

The nature and scope of performance auditing is evolving rapidly as it keeps pace with an environment which is changing at an ever increasing pace. SAls are at various stages in the evolution of performance auditing. To strengthen the value to be derived from performance auditing, there is great scope for SAls sharing their experiences and improving the standards and guidelines for undertaking such audits.

An audit report is the culmination of the efforts in carrying out a performance auditing and its utilisation by the executive and the legislature will assist in improving the performance and accountability of public administration.

The significance of the audit of social service programs arises not only from the extent of government expenditure involved, but also from the impact of such programs on large sections of the population and the wide diversity of these programs.

1.1 ASOSAI supports the removal of any impediments to SAls being able to properly undertake a performance audit role.

1.2 ASOSAI requests the Auditing Standards Committee of INTOSAI to consider the desirability of reviewing and updating as appropriate the Auditing Standards relating to performance auditing.

1.3. ASOSAI develop broad guidelines for performance auditing. Some of the elements to be covered include:

• Performance Audit Methodology
   

• Performance Audit Planning
   

• Audit Objectives 
   

• Audit Criteria
   

• Consultation with Agencies and other Stakeholders
   

• Understanding the business and the environment of entities subject to audit
   

• Developing Audit Findings
   

• Audit Evidence
   

• Data Analysis
   

• Developing Audit Recommendations
   

• Performance Audit Reporting
   

• Follow-up Auditing

1.4 ASOSAI is committed to developing mechanisms for the sharing of information, including through the Internet, between member SAls. Such information will include experiences in performance auditing as well as developments in methodology and standards. In developing such mechanisms consideration should be given to the differing levels of information technology available to SAls.

1.5 Member SAls are encouraged to:

1. define their core performance audit skill requirements and regularly review their skill levels and proficiency standards against these requirements. This might include a program for acquiring, developing and maintaining the necessary level of core skills.

2. establish appropriate accountability measures which will enable individual SAls to account for their own expenditures and the standard of performance achieved against institutional objectives and performance targets. To this end, clear performance indicators and a supporting management information system need to be in place.

3. recognise the importance of developing and maintaining clear communication with auditees and other government agencies in the conduct of all auditing activity including performance auditing. Such open communication will, amongst other issues, aim to communicate and promote the benefits of performance auditing, to secure better cooperation by agencies and their acceptance of audit findings and recommendations.

2.1. ASOSAI recognizes the need for the development of a suitable institutional framework for ensuring that lessons learnt from performance auditing are used for future plans and programs to the maximum extent possible.

2.2. ASOSAI encourages the individual SAls to :

3.1. Where social service programs are funded wholly or in part by government, audit of such programs executed either by government or non-governmental organisations should be as comprehensive as possible and address questions of economy, efficiency, and effectiveness.

3.2. The responsibility for establishing effective performance targets, standards, indicators and effective systems for monitoring and evaluating performance lies primarily with the audit. In conducting performance auditing, the SAIs' responsibility should cover: