Performance Audit Manual

The Office's performance audit practice formally began 25 years ago with the 1977 enactment of the Auditor General Act. This new Act enabled the Auditor General to report whether money was spent with due regard for economy and efficiency in the acquisition and management of goods and services, and whether the effectiveness of programs was being measured and reported. This broader mandate allowed the Auditor General to examine how well the government managed its affairs and to report the results of this examination to Parliament.

The first major revisions to the Manual since it was introduced in its current form in January 1999 were made in December 2002. Since 2002, there have been many important improvements to our performance audit methodology and practice and this revision captures and consolidates all of those. For example, in June 2004, we decided to rename the practice from "Value-for-Money" to "Performance Audit".

This Performance Audit Manual covers all performance audits, including those carried out by the Commissioner of the Environment and Sustainable Development. The Manual applies to all of our performance audit work: audits, studies, audit notes, follow-up and related testimonies and hearings.

The Performance Audit Manual is built around our Performance Audit Quality Management Framework (QMF) and provides the policy guidance necessary for practitioners to comply with the Performance Audit QMF and produce high-quality audits. The QMF for performance audits grew out of the quality management system first developed for our financial audit practice. The expanded QMF covers all aspects of the performance audit process from the selection of audits through to post-tabling activities.

The QMF and our performance audit policies are in accordance with the standards for assurance engagements recommended by the Canadian Institute of Chartered Accountants. Functional audit guidance and tools are also available to assist auditors in applying the policies and practices contained in the Manual. The Manual has a strong quality orientation based on current thinking and practice in first-class professional organizations. It provides a clear picture of the standard of quality expected and encourages the exercise of professional judgement.

The Performance Audit Manual is the product of extensive consultations with the Executive Committee, Practice Development Committee, internal specialists including functional responsibility leaders, and performance audit practitioners in the Office, as well as external consultants.

The Performance Audit Manual is expected to be a focal point for the continuous improvement of our performance audit practice. As our knowledge of and experience with performance auditing continues to expand and evolve, so will this Manual. If you wish to offer any comments or suggestions for improving the Manual, you may contact the Office's Professional Practices Group.

11 June 2004