Performance Auditing

Performance Auditing

Increased competition, a shrinking world, the decentralisation of operations as well as the desire of management to monitor the overall operations of the organisation has increased the number of internal auditors finding themselves involved in performance audits (also known as operational or value-for-money auditing). Such a shift enabled internal audit – with the objectives of its perspective and the rigor of its processes – to once again become an independent advisor and value creator to management.

performance auditing

Performance auditing is a technique used by internal auditors to evaluate the economy, efficiency and effectiveness of the organisations’ operations so as to assure management that its strategic objectives are being carried out and whether or not they can be improved on. The scope of the audit is expanded beyond the verification of financial controls or compliance with policies as it looks for the existence of management measures such as leadership, employee empowerment, teamwork, risk assessment, management information, communication, resource allocation, productivity measurement, etc. Performance auditing therefore requires flexibility, imagination and analytical skills to provide organisations with innovative solutions and new ideas.

Performance auditing is often a huge step for an organization but as with every new initiative, the potential benefits to be gained significantly outweigh the efforts to get there.

How can KPMG help?

KPMG have a dedicated team of performance auditors who specialize in assisting public and private sector clients with performance audit related services. 

Key services include the following:

Training course

Provision of high-level awareness workshops and training courses, tailor-made to address the requirements of clients in understanding the concepts, procedures and working methodologies associated with performance auditing.

PFMA and MFML compliance

Assistance to public sector clients to ensure adherence to the statutory requirements regulating the concepts of economy, efficiency and effectiveness, as specified in the Public Finance Management Act 1999, and Municipal Finance Management Legislation.

Internal Audit Assistance

Assistance to internal audit functions in developing step-by-step performance audit manuals to guide them in conducting their own performance audits. We also perform peer reviews to evaluate and report on the performance auditing approach and methodologies in use by clients’ internal auditors.

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