2022 Afin 432 2nd Semester Assignment

SCHOOL OF BUSINESS ECONOMICS AND MANAGEMENT STUDIES
AFIN 432 PERFORMANCE AUDITING

ASSIGNMENT NO. 1
[email protected]
Instructions:
CATEGORY: FULL, PART TIME & DISTANCE STUDENTS
ISSUED: 12th AUGUST, 2022
DUE DATE: 16th SEPTEMBER, 2022
1. Assignment must be typewritten

2. Arial/Times New Roman font 12 and 1.5 line spacing
3. The assignment must be submitted on or before 16 th SEPTEMBER, 2022
23.59 hours through Moodle platform
4. ASSIGNMENT MUST BE UPLOADED ON MOODLE IN PDF FORMAT.
5. Students are encouraged to read to understand and present responses
that are intuitive and value adding.
6. Originality in thought, well presented and argued paper will gain one
maximum marks
COVER PAGE
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ASSIGNMENT 1
Question 1
Performance Auditing is a recent type of auditing that has its origin from the
Public Sector. Performance Auditing came about due to demand from
Society (taxpayers) for public sector managers to account for efficacy and
effectiveness of public expenditure in view of limited/scarce financial
resources, the traditional role of audit could not satisfy society in the
manner public finances were utilised and as to whether the intended
purpose of the funds were achieved and what impact that achievement had
on society.
In this regard, a community in Northern Province had a lot of challenges in

managing to live a decent life due to inadequate social amenities.
Following several representations to the government the government

provided a budget line to provide a school, clinic, road, farming inputs to
support economic activities in the area. For effective construction of the
three projects a local committee of five was constituted to oversee the
establishment of an operating framework on how these activities could be
supported by government. The Logistics Committee was provided with
logistical support worth ZMW 50 000 to administer each of the identified
projects with strict deadlines for planning purposes broken down as follows;
ZMW 30 000 for the road, ZMW 10 000 for the school, ZMW 5000 for the
clinic and ZMW 5000 to assess the number of people requiring support to be
assisted with farming inputs.
Review
A review conducted of the Logistics committee over a period of six (6)

months during which time the committee was expected to provide a
feedback to the government no meetings were held, no reports were issued,
and no member of the community was consulted on how they could be
provided with the said support from government. An enquiry on how the
funds were utilised elicited no response from the committee prompting the
community representatives to seek clarification from government on what
exactly were the committee expected to do. The government then received
several complaints from the community on the fact that the committee had
not interacted with them since they were established.
The committee did not put anything in place in line with the set guidelines
between government and community through the committee.
Notwithstanding, the lack of discernible work it was alleged that all the
money provided had been used and that there was no evidence of the money
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having been correctly used as none of the expected reports were issued to
government for provision of the required services.
Follow up
An anonymous letter was written by the community to government for them

to send urgently a performance auditor to undertake the audit of the
activities of the committee as they felt that the resources as provided by the
Government to uplift their living standards were being misused.
As a performance auditor you are assigned to carry out the audit and
give a report on your findings to assess the economy and effectiveness
of the Logistics Committee in actualising the community concerns to
uplift their welfare through the establishment of a school, road, clinic
and provision of farming inputs. (40marks)
Question 2
1. Describe the five (5) special features of performance auditing (5 Marks)
2. What ideas form the basis of performance auditing? Discuss (5 Marks)
Question 3
Public sector management generally displays a combination of two

philosophies namely; rule-bound government administration and
management by objectives and results. The choice of public management
will affect performance auditing. Discuss (20 Marks)
Question 4
The INTOSAI General Auditing Standards 200, 2.1 common to SAIs which
subscribe to INTOSAI standards are:
‘(a) the auditor and the SAI must be independent;
(b) the auditor and the SAI must possess the required competence; and
(c) the auditor and the SAI must exercise due care and concern in complying
with the INTOSAI Auditing Standards.
Please elaborate on how this standard can be operationalised in

conducting performance or any other audits the SAI undertakes within
its mandate. (30 marks)
(Total: 100 marks)
END OF ASSIGNMENT
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SCHOOL OF BUSINESS ECONOMICS AND MANAGEMENT STUDIES

AFIN 432 PERFORMANCE AUDITING

1. Assignment must be typewritten

In this regard, a community in Northern Province had a lot of challenges in

Following several representations to the government the government

A review conducted of the Logistics committee over a period of six (6)

An anonymous letter was written by the community to government for them

1. Describe the five (5) special features of performance auditing (5 Marks)

2. What ideas form the basis of performance auditing? Discuss (5 Marks)

Public sector management generally displays a combination of two

‘(a) the auditor and the SAI must be independent;

Please elaborate on how this standard can be operationalised in

(Total: 100 marks)

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