The Concept and Functions of Performance Audit: Theoretical Study
Articles
Asta Salienė
Vilnius University, Lithuania
Daiva Tamulevičienė
Vilnius University, Lithuania
Lionius Gaižauskas
Vilnius University, Lithuania
Published 2020-08-04
https://doi.org/10.15388/batp.2020.22
HTML

Keywords

performance audit
concept of performance audit
functions of performance audit
elements of performance audit
economy
efficiency
effectiveness

How to Cite

Salienė, A., Tamulevičienė, D. and Gaižauskas, L. (2020) “The Concept and Functions of Performance Audit: Theoretical Study”, Buhalterinės apskaitos teorija ir praktika, 21, p. 7. doi:10.15388/batp.2020.22.
Crossref
Scopus
Google Scholar
Europe PMC
Vol. 21 (2020)

The Concept and Functions of Performance Audit: Theoretical Study

Abstract

Performance audit is a type of audit that evaluates and inspects an organizations’ activity based on the so-called 3E approach: economy, efficiency, effectiveness, and plays the most important role in institutions of public sector. During the implementation of the public sector reforms in recent decades, the concept of audit has been changing. Therefore, a need to re-evaluate the current definition of the audit and supplement it arose. It is also important to review the functions attributed to performance audit in order to define its ever-changing identity. The aim of the article: to evaluate the concepts of performance audit and the conceptual development of functions from a theoretical point of view. The article presents the analysis of performance audit concepts as well as a performance audit definition. The functions of performance audit have been distinguished, grouped, and evaluated based on how often they are mentioned in the literature. Two problems that make the implementation of the functions more challenging have been distinguished: contradictions among functions arise due to a diverse range of functions; due to versatility of the activity, the functions are difficult to evaluate, and measure and evaluation criteria are hard to establish.

HTML

References

3100 TAAIS INTOSAI. (n.d.). Veiklos audito gairės: svarbiausi principai. Prieiga per: <www.issai.org>.
Adi, S.; Dutil, P., 2018. Searching for strategy: Value for Money (VFM) audit choice in the new public management era. Canadian Public Administration. 61(1), 91–108. https://doi.org/doi.org/10.1111/capa.12254.
Arena, M.; Arnaboldi, M., 2014. Risk and performance management: are they easy partners? Management Research Review. 37(2), 152–166. https://doi.org/10.1108/MRR-08-2012-0180.
Arnaboldi, M.; Azzone, G., Palermo, T., 2010. Managerial innovations in central government: not wrong, but hard to explain. International Journal of Public Sector Management. 23(1), 78–93. https://doi.org/10.1108/09513551011012349.
Arnaboldi, M.; Lapsley, I., 2008. Making management auditable: The implementation of best value in local government. Abacus. 44(1), 22–47. https://doi.org/10.1111/j.1467-6281.2007.00247.x.
Arnaboldi, M.; Lapsley, I.; Dal Molin, M., 2016. Modernizing public services: subtle interplays of politics and management. Journal of Accounting & Organizational Change. 12(4), 547–567. https://doi.org/10.1108/JAOC-07-2014-0041.
Arnaboldi, M.; Lapsley, I.; Steccolini, I., 2015. Performance Management in the Public Sector : The Ultimate Challenge. Financial Accountability & Management. 31(February), 1–22.
Bøge Kristiansen, M.; Dahler-Larsen, P.; Ghin, E. M., 2017. On the Dynamic Nature of Performance Management Regimes. Administration & Society. 1–23. https://doi.org/10.1177/0095399717716709.
Colley, H., 2012. Not learning in the workplace: austerity and the shattering of illusio in public service work. Journal of Workplace Learning. 24(5), 31–337. https://doi.org/10.1108/13665621211239868.
Cordery, C.; Hay, D., 2018. Supreme audit institutions and public value: Demonstrating relevance. Financial Accountability & Management. 12(4), 1–15. https://doi.org/10.1111/faam.12185.
Dan, S.; Pollitt, C., 2015. NPM Can Work: An optimistic review of the impact of New Public Management reforms in central and eastern Europe. Public Management Review. 9037(August 2014), 1–28. https://doi.org/10.1080/14719037.2014.908662.
Daujotaitė, D.; Mačerinskienė, I., 2008. Development of Performance Audit in Public Sector. 5Th International Scientific Conference Business and Management’ 2008. (January 2008), 177–185.
Daujotaitė, D.; Puškorius, S.; Tarakavičiūtė, I., 2012. Veiklos audito teorija ir praktika. Vilnius: MRU.
Desmedt, E.; Morin, D.; Pattyn, V.; Brans, M, 2017. Impact of Performance Audit on the Administration: a Belgian Study (2005-2010 ). Managerial Auditing Journal. 32(3), 251–275. https://doi.org/10.1108/MAJ-04-2016-1368.
Hay, D.; Cordery, C., 2018. The value of public sector audit: Literature and history. Journal of Accounting Literature. 40, 1–15. https://doi.org/10.1016/j.acclit.2017.11.001.
Hood, C., 1995. The new public management in the 1980s: variations on a theme. Accounting, Organizations and Society. 20 (2-3), 93-109. https://doi.org/10.1016/0361-3682(93)E0001-W.
Iatco, C.; Ignat, G.; Ungureanu, G.; Athes, H., 2014. Aspects Regarding the Principles of Performance Audit. Lucrări Ştiinţifice. 57(2), 253–257.
Irawan, A. B.; Mcintyre-mills, J., 2016. Application of Critical Systems Thinking to Performance Auditing Practice at the Indonesian Supreme Audit Institution: Issues and Challenges. Systems Research and Behavioral Science. 33, 24–44. https://doi.org/10.1002/sres.2325.
Jan Van Helden, G.; Johnsen, Å.; Vakkuri, J., 2012. The life-cycle approach to performance management: Implications for public management and evaluation. Evaluation. 18(2), 159–175. https://doi.org/10.1177/1356389012442978.
Jarrar, Y.; Schiuma, G., 2007. Measuring performance in the public sector: Challenges and trends. Measuring Business Excellence. 11(4), 4–8. https://doi.org/10.1108/13683040710837883.
Kells, S., 2011. The Seven Deadly Sins of Performance Auditing: Implications for Monitoring Public Audit Institutions. Australian Accounting Review. 21(4), 383–396. https://doi.org/10.1111/j.1835-2561.2011.00150.x.
Mackevičius, J., 2001. Auditas: teorija, praktika, perspektyvos. Vilnius: Lietuvos Mokslas.
Mackevičius, J.; Daujotaitė, D., 2011a. Veiklos auditas: veiklos tikrinimo ir vertinimo instrumentas. Informacijos Mokslai. 57, 26–38.
Mackevičius, J.; Daujotaitė, D., 2011b. Veiklos audito elementai: analizė ir auditas. Socialinių mokslų studijos. 3(2), 459–472. Prieiga per: < https://pdfs.semanticscholar.org/fd94/d90b6ee417dfabef0265265a721b7eaa06c8.pdf?_ga=2.201868177.1665213191.1593010503-814326774.1572012254 >.
Marchi, L.; Bertei, M., 2016. Performance audit in the public sector. What is the contribution to the performance management? Management Control. (3), 49–63. https://doi.org/10.3280/maco2016-003004.
Mayne, J.; Ontario, O., 2006. Audit and evaluation in public management: challenges, reforms, and different roles. The Canadian Journal of Program Evaluation. 21(1), 11–45.
Meynhardt, T., 2015. Public value: turning a conceptual framework into a scorecard. Knygoje Public Value and Public Administration. pp. 189–203. Washington, DC: Georgetown University Press. Prieiga per : <https://www.alexandria.unisg.ch/243912/1/Chapter%20PVSC_TimoMeynhardt_1.pdf>.
Morin, D., 2003. Controllers or catalysts for change and improvement: would the real value for money auditors please stand up? Managerial Auditing Journal. 18(2), 19–30. https://doi.org/10.1108/02686900310454165720.
Morin, D., 2008. Auditors general’ s universe revisited an exploratory study of the influence they value for money audits. Managerial Auditing Journal. 23(7), 697–720. https://doi.org/10.1108/02686900810890652.
Morin, D., 2011. Serving as magistrate at the French Cour des comptes: Navigating between tradition and modernity. Accounting, Auditing & Accountability Journal. 24(6), 718–750. https://doi.org/10.1108/09513571111155528.
Lietuvos Respublikos valstybės kontrolės įstatymas, 1995. Suvestinė redakcija nuo 2019-01-02. Prieiga per: <https://e-seimas.lrs.lt/portal/legalAct/lt/TAD/TAIS.18295/OPlfarajEl>.
Morin, D.; Hazgui, M., 2016. We are much more than watchdogs: the dual identity of auditors at the UK. Journal of Accounting & Organizational Change. 12(4), 568–589. https://doi.org/10.1108/JAOC-08-2015-0063.
Nakrošis, V., 2011. Viešojo valdymo reformos Lietuvoje: kodėl ir kuo reikia pakeisti naująją viešąją vadybą? Politologija. 1(61), 65–98.
Parker, L. D.; Jacobs, K.; Schmitz, J., 2019. New public management and the rise of public sector performance audit evidence from the Australian case. Accounting, Auditing & Accountability Journal. 32(1), 2–25. https://doi.org/10.1108/AAAJ-06-2017-2964.
Pierre, J.; Peters, B. G.; de Fine Licht, J., 2018. Is auditing the new evaluation? Can it be? Should it be? International Journal of Public Sector Management. 31(6), 726–739. https://doi.org/10.1108/IJPSM-08-2017-0219.
Pollitt, C., 2003. Performance audit in Western Europe: Trends and choices. Critical Perspectives on Accounting. 14, 157–170. https://doi.org/10.1006/cpac.2002.0521.
Pollitt, C., 2013. The logics of performance management. Evaluation. 19(4), 346–363. https://doi.org/10.1177/1356389013505040.
Pontones Rosa, C.; Perez Morote, R., 2016. The audit report as an instrument for accountability in local governments: a proposal for Spanish municipalities. International Review of Administrative Sciences. 82(3), 536–558. https://doi.org/10.1177/0020852314566000.
Rana, T.; Hoque, Z.; Jacobs, K., 2018. Public sector reform implications for performance measurement and risk management practice: insights from Australia. Public Money & Management. 1–10. https://doi.org/10.1080/09540962.2017.1407128.
Raudla, R.; Taro, K.; Agu, C.; Douglas, J. W., 2016. The Impact of Performance Audit on Public Sector Organizations: The Case of Estonia. Public Organization Review. 16(2), 217–233. https://doi.org/10.1007/s11115-015-0308-0.
Reichborn-Kjennerud, K., 2013. Political Accountability and Performance audit: the case of the auditor general in Norway. Public Administration. 91(3), 680–695. https://doi.org/10.1111/padm.12025.
Reichborn-Kjennerud, K., 2014. Performance audit and the importance of the public debate. Evaluation. 20(3), 368–385. https://doi.org/10.1177/1356389014539869.
Reichborn-Kjennerud, K.; Johnsen, Å., 2011. Auditors’ understanding of evidence: a performance audit of an urban development programme. Evaluation. 17(3), 217–231. https://doi.org/10.1177/1356389011410523.
Reichborn-Kjennerud, K.; Vabo, I. S., 2017. Performance audit as a contributor to change and improvement in public administration. Evaluation. 23(1), 6–23. https://doi.org/10.1177/1356389016683871.
Scharaschkin, A.; McBride, T., 2016. Policy analytics and accountability mechanisms: judging the ‘value for money’ of policy implementation. Annals of Operations Research. 236, 39–56. https://doi.org/10.1007/s10479-014-1723-2.
Torres, L.; Yetano, A.; Pina, V., 2016. Are performance audits useful? A comparison of EU practices. Administration & Society. 1(32), 1–32. https://doi.org/10.1177/0095399716658500.
Van der Knaap, P., 2011. Sense and complexity: initiatives in responsive performance audits. Evaluation. 17(4), 351–363. https://doi.org/10.1177/1356389011423551.
Van Helden, J.; Reichard, C., 2019. Management control and public sector performance management. Baltic Journal of Management. 14(1), 122–140. https://doi.org/10.1108/BJM-01-2018-0021.
Verbeeten, F. H. M., 2011. Public sector cost management practices in The Netherlands. International Journal of Public Sector Management. 24(6), 492–506. https://doi.org/10.1108/09513551111163620.

Downloads

Download data is not yet available.

Most read articles by the same author(s)

1 2 > >>