THE PERFORMANCE AUDITING: EFFECTIVE TOOL TO OBTAIN REASONABLE ASSURANCE

Abstract

Performance auditing in public sector has now become a popular type of audits and the one that dominates audit activities in the developed countries. However, not all countries can successfully adopt and develop this kind of audit. This study proposes a performance auditing model from the financial statement audit methodology. This study applies the Grounded Theory to propose suitable performance auditing model for audit subjects. The data used for the study included the standards and guidelines for performance auditing. The performance auditing model is consistently applicable to different audit subjects. The research results showed that the performance auditing model is effective in selecting audit subjects, planning and conducting the performance auditing. Thereby, this model can improve the level of assurance that a performance auditing report is provided.