An audit program planning methodology and model specific to performance auditing

Performance audit as an audit discipline has developed seriously since the late1970s. Due to its developing nature, it has been noted that it lacks formalmethodologies. One such methodology is in the specific design of an auditprogram; this is important as the audit program is the basis of the audit. This studyattempts to create a methodology of audit program design specifically forperformance auditing and to present this in a model format. Grounded theory willbe applied. The result indicates a methodology and model specific forperformance audit can be compiled. The methodology and model were evaluatedagainst SAICA and INTOSAI performance audit standards. In order to test themethodology and model in the external environment it was applied to an existingprivate sector business. No problems were identified.The value of this research study contributes to the existing body of knowledge inthat grounded theory was applied to develop a performance audit methodologyspecific to performance audit, the proposed methodology and model contributes toaudit program design within performance audit, and in the evaluation of themethodology and model against SAICA and INTOSAI performance auditstandards. Further research is required to confirm the applicability of themethodology and model in the private and public sectors.KeywordsPerformance audit; audit program; grounded theory; private sector; public sector;process; risk; control; risk-based auditing; efficiency; effectiveness; economy