Once a decision is made by Government regarding the extent and frequency of performance statement audits the ANAO should update the Performance Statement Audit methodology to reflect the flexibility available in levels of assurance and the appropriate Audit standard.

The ANAO’s methodology for conducting audits of performance statements is designed to obtain reasonable assurance. The ANAO continues to refine this methodology and is also formalising guidance with respect to limited assurance performance audits which could be applied to audits of performance statements if the Auditor-General elected to perform a limited assurance engagement. If a Government decision is made to require performance statements to be audited, the ANAO Auditing Standards will be updated accordingly.

Completed.

ANAO has now conducted two years of performance statement audits and commenced its third auditing under a reasonable assurance methodology in accordance with section 40 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). All ANAO methodology products are now being written based upon reasonable assurance requirements in the application of auditing standard ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information, which is incorporated into the Australian National Audit Office Auditing Standards 2021 (ANAO Auditing Standards).

In conjunction with recommendation 1, the ANAO should finalise the performance statement audit report template that aligns with the type of assurance engagement required.

Completed.

The ANAO methodology includes template audit reports for audits of performance statements.

Refer to recommendation 1 and incorporate more detailed guidance on materiality and testing approaches in the revised Performance Statement Audit methodology.

The ANAO will incorporate the suggested updates in the revised Performance Statement Audit methodology.

Completed.

ANAO has formed a settled view on key aspects of materiality and testing approaches in the conduct of performance auditing, including the fundamental principle that performance measures specified in auditee’s Portfolio Budget Statements and Corporate Plans are presumed to be material.

Once a decision is made by Government regarding the extent and frequency of performance statement audits the ANAO should update the Performance Statement Audit methodology to reflect the flexibility available in levels of assurance and the appropriate Audit standard.

The ANAO’s methodology for conducting audits of performance statements is designed to obtain reasonable assurance. The ANAO continues to refine this methodology and is also formalising guidance with respect to limited assurance performance audits which could be applied to audits of performance statements if the Auditor-General elected to perform a limited assurance engagement. If a Government decision is made to require performance statements to be audited, the ANAO Auditing Standards will be updated accordingly.

In progress.

The ANAO currently performs audits of performance statements under request from the Finance Minister pursuant to section 40 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). These audits provide reasonable assurance, in accordance with the ANAO methodology for performance statements, applying the requirements of auditing standard ASAE 3000  Assurance Engagements Other than Audits or Reviews of Historical Financial Information, which is incorporated into the Australian National Audit Office Auditing Standards 2021 (ANAO Auditing Standards).

If the PGPA Act or Auditor-General Act 1997 are amended to require performance statements to be audited, the ANAO Auditing Standards will be updated accordingly.

In conjunction with recommendation 1, the ANAO should finalise the performance statement audit report template that aligns with the type of assurance engagement required.

Completed.

The ANAO methodology includes template audit reports for audits of performance statements.

Refer to recommendation 1 and incorporate more detailed guidance on materiality and testing approaches in the revised Performance Statement Audit methodology.

The ANAO will incorporate the suggested updates in the revised Performance Statement Audit methodology.

In progress

The ANAO methodology continues to be refined during the pilot audits of performance statements, including to include additional guidance in respect of materiality and testing approaches.