Over the last decades, public institutions, companies and other types of organisations have been keen on the use of internal and external audits as essential tools to discover malfunctions of their operations; to minimise risks; to develop their systems; and to accomplish their goals. Auditors perform various audit procedures for their employers. The procedures are mainly related to procedures on the effectiveness of the organisations internal controls over financial reporting.
The focus of these procedures are expected to be on compliance, systems and performance. However most auditors tend to focus on compliance and systems audit at the expense of performance audit. That is to say they spend ample efforts to ensure compliance through the review of organisations’ adherence to regulatory guidelines; and assess the internal control systems of organisations such as the quality of the accounting system in place; but not the assessment of the economy, efficiency and effectiveness of organisations, which is performance audit.
This is a common deficiency to the procedures adopted by auditors especially, internal auditors. It is not altogether intentional but largely because performance audit is relatively an area that most auditors are not familiar with in both theory and practice as compared to the other types of audits. This new type of audit has become vital largely because traditional sources of information do not fully meet the requirements of people with oversight responsibilities such as board members, managers and others who need to know and act on a wide range of performance aspects.
Also global business and organisational challenges such as increased competition, a dwindling world for similar businesses; and decentralisation of operations coupled with the craving of management to monitor the overall operations of an organisation demand the need for auditors to be involved in performance audits. Globally there is a shift from the traditional procedures employed by auditors to performance auditing. This is to ensure that auditors will be more rigorous in their processes and to become an independent advisor and value creator to management and their clients at large.
Performance (also known as operational or value-for-money auditing) is an independent examination of whether the programmes, projects, processes, operations and activities of organisations are being carried out with due regard to economy, efficiency and effectiveness. Performance audit seeks to improve financial and economic management by making available information needed to a make decision on either to pursue, adjust or put an end to an activity; improve planning in a potentially parallel operation; inform stakeholders through feedback on the success or otherwise of programmes and projects that are planned and implemented.
It is a technique used by auditors to evaluate the economy, efficiency and effectiveness of organisations’ operations so as to assure management that its strategic objectives are being carried out and whether or not they can be improved on. With knowledge in performance audit the auditor will expand the scope of his schedule beyond the verification of financial controls or compliance with policies. This is because performance audit goes beyond the financial figures and the controls and compliance and delve into issues such as the existence of management measures such as leadership, employee empowerment, teamwork, risk assessment, management information, communication, resource allocation, productivity measurement and so on. The auditor’s knowledge in performance auditing will enable him/her develop the skill of flexibility, imagination and analytical skills and provide an organisation with innovative solutions and new ideas to improve upon their operations
Aim of Course
To provide participants with knowledge and skills in carrying out performance audits. The essence is to equip participants with skills that will enable them provide additional information beyond the traditional financial verification, controls and compliance to their employers so that they can make informed decisions. Thus making the procedures that participants will employ in auditing more rigorous and comprehensive.
Objectives of the Course
- To provide participants with knowledge in performance auditing
- To provide participants with an understanding of the various tools available for carrying out performance audits and how they can be applied
- To provide participants with understanding of the processes involved in carrying performance audit and reporting.
Who Should Attend the Course
This course is intended for:
- Internal auditors from public and private organisations
- External auditors in the private practice
- Management professionals
- Directors of organisations
- Aspiring audit professionals
The course is suitable for individuals whose work schedules involve auditing, accounting and management, and those who carry out oversight responsibilities over organisations.
The mode of delivery will involve classroom learning using participatory approach, hands-on practicals, individual and group presentations. Assessment will be based on the individual and group presentations of case studies.
The fee per participant is GHS 2000.The fees covers tuition, training materials, lunch and certification. Participants shall be presented with a certificate upon completion.