The Contested Nature of Performance Auditing in Australia

In this decade we have witnessed in the Australian public sector tremendous pressures for change in the name of accountability and efficiency. Changes have occurred in public sector management and in public sector accounting. Techniques such as programme budgeting, financial management initiatives, enhanced annual reporting and performance audits have all been promoted. These changes have led to a “new” accounting for the public sector. Performance auditing is compared at the commonwealth and the state level, and a study is provided of how a change in accounting can affect the organisation, in a social and political context. Differences between performance auditing and traditional auditing are illustrated and then assessed within a framework of accountability.