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International Journal of Research in
Management, Sciences and Technology

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IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020
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CLEAR International Journal of Research in Management, Sciences and Technology
FACTORS AFFECT ON PERFORMANCE AUDIT IMPLEMENTATION IN

A CASE STUDY OF AMHARA NATIONAL REGIONAL STATE
SELECTED PUBLIC SECTORS
RESEARCH PAPER
*Wale Abie **Prof. Dr. Chinniah Anbalagan*** Ebrahim Mohammed

* Student, M. Sc Accounting and Finance, Department of Accounting and Finance, College of Business and
Economics, Samara University, Afar, Ethiopia, East Africa
** Professor, Department of Accounting and Finance, College of Business and Economics, Samara University, Afar,
Ethiopia, East Africa
** Lecturer, Department of Accounting and Finance, College of Business and Economics, Samara University, Afar,
Ethiopia, East Africa.
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ABSTRACT
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Inefficient and ineffective performance audit implementation results in poor attainment of organizational goals and
objectives, there by poor organizational performance, and absence accountability. The main objective of this study
is to assess the factors affect on performance audit implementation in some of the selected public sectors in
Amhara National Regional State. The factors used to assess factors affect on performance audit were perceptions
of public sectors auditors on the performance audit, the obstacles of the auditors in the implementation of
performance audit and the performance audit factors of six explanatory variables; lack of capacity building,
absence of consultant recruitment, lack of awareness level, absence of pre-set goals, absence of accountability and
lack of top management support were regressed against the dependent variable of performance audit ineffectiveness.
The study used both primary and secondary data sources. Cross sectional survey was employed taking a sample of
162 respondents selected through simple random sampling technique to collect data through questionnaire was used
to consolidate and verify the information. Data were analyzed and interpreted using descriptive statistics based on
SPSS 16.0 and qualitative technique. The results show that performance audit takes more time and financial
resources; Lack of cooperation and commitment from auditees in conducting the performance audit; Inadequate
management information and Performance audit team itself lacks technical knowledge are the top constraints of
the public-sector auditors in conducting performance audit. The study also finds that with the exception of
lack of top management support other five variables which are lack of capacity building, absence of consultant
recruitment, lack of awareness level, absence of pre-set goals, and absence of accountability significantly influence
the performance audit ineffectiveness. The findings also suggest that some measures such as; improving quality of
audit service, taking corrective actions based on audit findings, updating database system, publicizing the work of
the Office by using different media and etc. should be taken by the ANRS selected public-sector in achieving the
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performance audit goals and objectives.

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Article History
Received: 18th May, 2020 Received in revised form: 21.05.2020
Accepted: 22.06.2020 Published on: 30.June.2020
Keywords: performance audit, public sector, economy, efficiency, effectiveness
Corresponding Author : Wale Abie
Email :
1. INTRODUCTION
l. 1. Background of the Study
As government programs continue to grow in magnitude and complexity, public sector auditing has evolved and
extended its scope beyond mere financial or compliance audits to the auditing of performance to support policy
makers in their oversight role. Performance auditing is a systematic, objective assessment of the accomplishments or
processes of a government program or activity for the purpose of determining its effectiveness, economy, or
efficiency. This determination, along with recommendations for improvement, is reported to managers, ministers, and
legislators, who are responsible for enacting the recommendations or ensuring accountability for corrective action.
Performance auditing is an important building block with which to improve accountable and responsive governance
of public resources (Waring& Morgan, 2007).
The purpose of government audit is to ensure transparency and accountability in the use of resources in all types of
government management. The objective of audit work includes verification of statements of accounts and statement
of income and expenditure to determine whether these are prepared truly and correctly. With the emergence of New
Public Management (NPM) and Good Government ideas, there has been a radical change in the approach to public
sector auditing. The focus has been shifted to traditional compliance and financial auditing to issues of performance
and results. The process of performance audit implies an interaction and communication between the auditors and
public sectors. This process constitutes an attempt by the auditors to influence public sectors, both to make real
change in the way they manage public resources, and to improve performance by implementing the performance
audit recommendations (Morin, 2001).
Overall, performance audit is not just a tool like financial audit that can be easily standardized. Performance audit is a
management tool that provides information and feedback for organization improvement. The reviews in performance
audit are not limited to the financial accounting, but also include evaluation of the organizational structure, standard
of procedures, operating methods, and any aspects in the organization that individually or together, have an impact
to the organization‘s performance. From a mere accounting exercise, auditing is nowadays looked upon as a social
planning tool with an unmatched ability to measure the usefulness of investment of public resources for social
change. Performance/VFM audit facilitates effective assessment government‘s performance and it provides
great deal of information to make the executive accountable (Nusrat, 2012). According to Waring& Morgan
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(2007), Performance auditing works with the same performance management concepts used by program managers
and their principals to plan, monitor, and evaluate how public resources are used to achieve public policy ends. The
concepts of inputs, processes, outputs, outcomes, and impact, as well as their interface with the above goals of
economy, efficiency, and effectiveness, are common tools for public managers and public performance auditors
‘alike. The major concerns in the context of public financial management have always been to see how well the
scarce public resources are utilized. The stakeholders expect that the audit office provide them with more
information in the line of 3Es (Economy, Efficiency, Effectiveness) of government‘s programmers and services.
Thiel and Leeuw (2002) pointed out that the objective of New Public Management was twofold: first, to reduce
government expenditures and; second to improve efficiency and effectiveness of government programs. For the
former, the reform was related to the public sector need to cut government expenditure. This led to the budget
and financial management reforms ‘( Pollitt, Girre, Lonsdale, Mul, Summa, and Waerness, 1999) such as the
accrual accounting and program- based budgeting system. For the latter, the emphasis was on the outcomes of the
government programs. For example, in achieving the objective of reducing the government expenditures,
government agencies delegated spending authority to lower subordinate‘s thorough decentralization. This however,
comes with tight spending limits and requires staff to take new responsibility with delivered budgeting. The need
for auditing of such developments would appear unarguable (Pollitt,2003). In this case, the performance audit is the
most suitable approach as it can provide an assessment on the performance of agencies programs in utilizing the
limited resources. With regard to the second objective of improving efficiency and effectiveness of government
programs, the government agencies are usually given a greater degree of control over the resources. Therefore, it is
clear that the performance audit arises as a part of New Public Management. Based on the above discussion,
the New Public Management has provided a good reason for the establishment of performance auditing. The
adoption of the performance audit was fed by a strong belief in the measurability of performance in the public
sector ‘(Thiel and Leeuw, 2002). According to Tadele (2012), practice of performance audit in Ethiopia aged more
than two decades. However, it did not mature due to various factors and problems such as lack of sufficient
professional auditors and cooperation of auditees (audited government entities), less legislature attention,
documentation system, and lack of awareness by auditee, lack of support materials and resources such as book, and
infrastructure facilities. Therefore, the focus of this study is to assess the factors affect on performance audit
implementation on some selected public sectors in Amhara National Regional State. The study would be done by
gathering information from public sectors regarding their perception on performance audit and on involvement of
the Auditor and Auditees for the achievements of goals and objectives of performance audit on the audited sectors to
enhance accountability.
1.2. Statement of the Problem
Usually an audit party goes to an institution, does its regular work, that is, performs compliance or financial audit of
government expenditure and receipt of a particular year or years together, submits their reports to respective audit
directorate and the work is done. From those reports less important financial irregularities and non-recurring mistakes
are discussed, brought to the notice of higher authority and measures are taken to mitigate it from the respective
audit directorate. Only serious financial irregularities are compiled together ministry wise and then sent to office of
auditor general and from there it is sent to public accountants ‘committee to be discussed and punitive measures are
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taken from there (Nusrat, 2012). Its mandate, in performance audit, is to establish whether public policies, programs,
projects or organizations have operated with due regard to economy, efficiency, effectiveness and good management
practice (Pollitt, 2003).The performance audit reports intended to contribute to improved operations in the entities
and they had used by the parliament and its control committee to hold the audited entities to account for
unsatisfactory performance, management practice or lack of compliance in policy area (Laegreid,
2013).Performance audit achieves its objectives of enhancing accountability and performance improvement if
performance audit gets recognitions by the audited entities and other stakeholders outside the audited entity
(Morin, 2004).
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But performance audit is different in many aspects. It not only examines whether rules and regulations are followed
while expenditures are being incurred but whether the goals of an institution are fulfilled and how economically,
effectively and efficiently money is being spent from government exchequer. This whole endeavor requires well
equipped manpower, longer time frame, more resources and greater involvement of both auditor and auditee.
Performance audit, unlike other types of audit, recommends measures to be taken to achieve its goal at the end of
each report. Both the auditor and the auditee had to face many challenges from planning to implementation of
performance audit. It must be directed towards ascertaining the effectiveness of the resources utilized by the
government. Towards this end, compliance and financial audit is necessary but not sufficient to ensure that
resources are effectively used. The subjective nature of performance audit should not deter its implementation. It
only means that such audit must be meticulously carried out and the people involved should be fully trained (Nusrat,
2012).
Inefficient and Ineffective performance audit implementation results in poor attainment of organizational goals and
objectives, there by poor organizational performance, and absence accountability. Thus, the researcher wants to sort
out the challenging factors (capacity building, consultant recruitment, awareness level, pre-set goals, accountability
and Top management support) that affect the effective performance audit implementation process in Amhara
National Regional State public sectors.
As performance auditing is a recent phenomenon in public sector no specific and comprehensive research has been
found on this topic. Only a very limited and discreet study has been done in this respect and those are in the
developed country context. To date there is no academic study conducted regarding factors affect on performance
audit implementation in the audited entities of the region. According to Amhara National Regional State Office
of Auditor General(ANRSOAG), even from the side of Regional Office of the Auditor General, for example through
follow up, no work has performed to identify factors affect on performance audit on the implementation process.
Coming to the study areas, sufficient published works are not available in relation to the practices and factors affect on
performance audit implementation. Thus, the existence of such limited researches throughout the country and absence
of studies in selected public Service Bureaus of Amhara Regional State. initiated the researcher to raise the issue
under consideration. Therefore, this study was extend few previous researches in performance audit implementation,
which subsequently affect both individual and organizational performance. Therefore, the above discussed problems
invited the researcher for extensive research on the factors affect on performance audit implementation in Amhara
National Regional State selected public sectors.
1.3. Objectives of the Study
1.3.1. General Objective
The general objective of this research is to assess the factors affect on performance audit implementation faced by in
the public sectors of Amhara National Regional State.
1.3.2. Specific Objectives
The specific objective of the study includes:
1. To assess perception of public sectors auditors on the performance audit.
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2. To find out the factors affecting of the auditors in the implementation of performance audit process.
3.To examine the causal relationship between performance audit related factors (lack of capacity building, absence of
consultant recruitment, lack of awareness level, absence of pre-set goals, absence of accountability and lack of top
management support) with that of performance audit ineffectiveness.
1.4. Research Question
To address the problems related with performance audit implementation, it is important to pose the following
questions and the study would try answers these basic questions.
1. What perceptions that the auditors have on performance audit?
2. What factors affecting of the auditor face during performance audit?
3.What relation that they have between performance audit implementation related factors (lack of capacity building,
absence of consultant recruitment, lack of awareness level, absence of pre-set goals, absence of accountability and
lack of top management support) and performance audit ineffectiveness.
1.5. Scope the Study
This study delimited to assess the factors affect on performance audit implementation in Amhara National Regional
State selected public sectors. Therefore, this study planned to conduct in the narrow coverage. It focused on the few
of the entities on which performance audit had conducted. In addition, the intent of this study is to investigate the
selected factors of the performance audit effectiveness; such as capacity building, consultant recruitment, awareness
level, pre-set goals, accountability and top management support and also is concerned on the obstacles and
perception of performance audit in the Amhara Regional State Public Sectors.
1.6. Significance of the Study
To the researcher ‘s knowledge, this is the first study that attempts to collect information on the existence of factors
in the context of performance auditing, specifically in the Amhara National Regional State public sectors. Thus,
from the researcher‘s point of view, this study potentially contributes to the auditing literature in three ways.
Firstly, it extends the existing knowledge on the audit factors by providing evidence of the nature of factors and their
composition in Amhara National Regional State public sectors. Secondly, by examining the nature of performance
audit and audit process, using Amhara National Regional State public sectors as a case study; this study contributes to
the literature of performance audit in developing countries. Thirdly, this study contributes to the knowledge of the
audit factors in the public sector by enhancing the understanding of the effect of different contexts on the audit.
Therefore, the findings of this study was provide a useful framework for studying the audit factors in the public
sector and be useful to academics and other researcher.
The study would be significant in providing useful information for individuals who want to work further research.
For management, it helps to evaluate the performance audit implementation in the organization and to take the
necessary measures to correct weakness and to keep up strength of the organization. For internal and external
auditors, it helps to assess internal control system of the organization and to enable them to rely on the system to
perform their audit task.
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1.7. Limitation of the Study

This study aims to explore the presence (or absence) of the audit factors in Amhara National Regional State public
sectors. It investigates the perceptions of auditors and users on the performance audit functions and auditors ‘work.
The first limitation of this study is that absence of full information regarding performance audit in Ethiopian context
r. Also, the findings of this study would be limited to Amhara National Regional State public sectors. The study
covered only small in number of the audited entities found in the regional bureau level. In addition to this
when the researcher distributes the questionnaire; some respondents were not voluntary to receive the questionnaire
even if they have ability and scarcity of financial resources, lack of computers, laptops and other limitation were
covid-19.
2. LITERATURE REVIEW
This section presents review of existing theoretical and empirical literature on performance audit. The theoretical
literature review consists of a discussion and a presentation of performance audit concepts, and underpinning factors
and phases of performance auditing. Moreover, it reviews the existing empirical research in the area of factors
performance audit.
2.1. Theoretical Literature Review
2.1.1. Operational Definition
According to INTOSAI (2004), performance auditing is an independent review of the economy and efficiency of
auditee operation and the effectiveness of its programs.
Meanwhile, the International Organization of Supreme Audit Institutions (INTOSAI) in their report states that
performance auditing consists of;
I) audit of the economy of administration activities in accordance with sound administrative principles and practices
and management policies;
II) audit of the efficiency of utilization of human, financial and other resources, including examination of
information systems, performance measures and monitoring arrangements and procedures followed by audited
entities for remedying identified deficiencies; and
III) Audit of the effectiveness of performance in relation to achievement of the objectives of the audited entity and
audit of the actual impact of activities compared with the intended impact (INTOSAI ,1992), cited in Pollitt et al.
(1999).
Now for further clarification the main three components of performance audit are discussed elaborately
(A) Economy
The concept of economy is associated with the inputs used in the projects or activities. It is about obtaining the
resources at a minimum cost but at the same time maintaining the quality of items. Economy is taken to mean the
achievement of a given result with the least expenditure of money, manpower or other resources. White and
Hollingsworth (1999), it also used the term spending less ‘to refer to this process. The economy is concerned with
minimizing the cost of resources used for such activities without affecting the quality. For example, the economy can
be assessed by comparing the cost of a vehicle purchased with another model of similar quality. According to Glynn
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(1985), a lack of economy could occur when there is overstaffing or overpriced items are involved. Although the
concept of economy is well defined, the audit of economy is not a straightforward process. It is often a challenging
task for an auditor to assess whether the inputs chosen represent the most economical use of public funds, whether the
resources available have been used economically, and if the quality and the quantity of the ‗inputs‘ are optimal
and suitably co-ordinate (INTOSAI, 2004).
(B) Efficiency
The concept of efficiency is related to the relationship between the inputs and outputs. Efficiency is about ensuring
that a maximum output is obtained from the resources devoted or conversely that a minimum level of resources is
devoted to a given level of output (Glynn, 1985). An example for the former is the increasing number of patients
served in a hospital with existing resources while the reduction in the cost of repairs and maintenance of vehicles is
an example of measuring the efficiency for the latter. Inefficiency would occur when there is an oversupply or
excess of resources (INTOSAI, 2004).
(C) Effectiveness
The concept of effectiveness is the last element in performance auditing. Effectiveness is concerned with the
outputs. It is about ensuring that the output from any given activity is achieving the desired results ‘, (Glynn,
1985), regardless of the cost involved. Effectiveness is concerned with achieving predetermined objectives with
the actual impact compared with the intended impact.
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Assessing whether there is improvement in school examination results after the introduction of a tuition program is
an example of an audit on effectiveness. The programmed is effective if the examination results are improved. In
other words, effectiveness looks at whether the programmed or activities succeed or not in achieving the objective.
Arguably, the programmed is ineffective when the outputs are not really the one desired or they do not have
appropriate impacts on the community ‘(INTOSAI, 2004).
Based on the above discussion, it is clear that economy, efficiency and effectiveness are related to each other.
However, some researchers argue that this is not a straightforward relationship. For example, Power
(2000),states that the conflicts exist within the very concept of VFM. Specifically, Power argues that the conflicts
occur between the theme of fiscal crisis, questions of economy, efficiency and cost control, and the theme of
service quality enhancement or effectiveness'. Economy alone deals with price of inputs and is not a
measure of value for money ‘. He argues that the same case applies to efficiency and effectiveness. In other
words, the objective of performance auditing is achievable only after all these elements are addressed. As a result,
this relationship may cause the auditors to face difficulty in assessing these three elements especially efficiency and
effectiveness.
The effectiveness in many public services is, of course, difficult to determine. Objectives are often imprecise
and ambiguous, and even if they were not, their achievement will frequently be impossible to measure. Under such
circumstances, the evaluation of effectiveness is an inherently subjective process and the appropriateness of
involving auditors has always been a matter for concern ‘(Morin, 2001).
The difficulty mentioned above is basically due to the lack of well-defined measurement criteria. Commenting on
what is economic, efficient and effective is obviously not as clear- cut as commenting on dollar and cent valuations
and results. Without the clear guidelines, auditors will continue to face this problem (Brown and Jackson, 2008).
Therefore, it is important for auditors to have a clear understanding of these concepts. The
economy is about getting a thing ‘at the right price, effectiveness is doing the right thing‘,
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whilst efficiency is doing the thing right ‘. More importantly, their recognition and awareness of the difficulties and
issues surrounding these three elements would help them make correct assessments and informed judgments.
Performance auditing ensures value for money to achieve the following:
1. Efficiency – the relationship between input and output (spending well). 2. Effectiveness
– how well objectives are achieved.
3. Economy –minimizing the cost of activity (spending less) (Brown and Jackson,
2008).
2.1.2. Emergence of Performance Audit
The first point to rise is one of terminology differences. Different terms are used in various parts of the world.
Reference is frequently made to ―value for money audit (VFM) and ―performance audit in relation to
examinations of the use of resources by public-sector organizations. Although performance audit can sometimes
be interpreted as extending beyond clear FM issues (to include, for example, quality and technical matters), and
the terms are used interchangeably by many auditors (Daujotait and Macerinskien, 2008). In this research, the
researcher shall use the formal term ―performance audit, which has been adopted by the International
Organization of Supreme Audit Institutions (INTOSAI) Auditing Standards.
The concept of performance auditing in the public sector has been around since the 1960s, pervasive in countries
like the United States (US), Canada, the United Kingdom (UK), Australia, and New Zealand (Green & Singleton,
2009). They also claim that the United States General Accounting Office (GAO) was the pioneer of comprehensive
auditing after the Second World War.
In UK since 1stJanuary 1984, the National Audit Office (NAO) was established, under the terms of the National
Audit Act of 1983, to carry out Value for Money (VfM) audits in Central Government (Lapsley & Pong, 2000).
Glynn (1985), also detailed the international trend in VfM auditing and its adoption by a wide range of nations. He
states that the General Accounting Office (GAO) in the Federal institutions of the United States of America started
in the early 1970s to formulate principles and accounting standards and performing audits, which have expanded
to include a VfM audit. Meanwhile,
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Sweden was the first European country formally to adopt the VfM audit, through its National
Audit Bureau, in 1970.
In Canada, the VfM audit appeared in the Canadian Public-Sector auditing environment in 1977 and in 1985, the
Auditor General in Quebec have authorized to carry out VfM audits in provincial departments and Government
agencies (Morin, 2003). In addition, within the British Commonwealth, Canada was the first to adopt VfM auditing
followed by New Zealand and Australia, where it was introduced in 1975 and 1979, respectively (Glynn, 1985).
By the 1990s, VfM audit has fully established, with its own procedures and staff, in Australia, Canada, Finland,
France, the Netherlands, New Zealand, Norway, Sweden, the UK and the USA (Johnsen, Meklin, Oulasvirta, &
Vakkuri, 2001).
According to Tadele (2012), In Ethiopia, performance audit was started in 1992. According to Amhara National
Regional State Office of Auditor General (ANRSOAG), On the other hand, Performance audit started from nothing
lately in 1987 and gradually, it grows up to five entities in average per annum since 2010/11.
2.1.3 Scope of Performance Audit
According to Nusrat (2012), Performance auditing is an area new enough in the history of auditing. Its growth
parallels the evolution of politics and public administration from one- dimensional focus on control of inputs
(resource) towards broader attention to accountability for outputs and outcomes. The causal relation between
management‘s reforms and the developments in performance auditing may theoretically go in two directions:
reform causes new audit practices or new audit practices cause the reform. Empirically, the relationship is mainly
one directional: management reforms trigger an adoption of audit practices. On the audit side, new public
management has influenced development of the audit. This evolution of auditing represents both: a means by
which audit can continue to be relevant and a move towards fulfilling accountability role in governance.
According t o Waring and Morgan (2007), defines the performance audit as follows: "Performance auditing is a
systematic, objective assessment of the accomplishments or processes of a government program or activity for the
purpose of determining its effectiveness, economy, or efficiency. This determination, along with recommendations
for improvement, is reported to managers, ministers, and legislators, who are responsible for enacting the
recommendations or
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ensuring accountability for corrective action. Hence, performance auditing is an important tool that makes
conditions to improve accountable and help to create responsive governance of public resources.
Thus, the aim of the performance audit is to evaluate audited entity's performance and management in terms of
economy, efficiency and effectiveness and to provide recommendations on how to improve the performance of the
said entity.
According to Nusrat (2012), Scope of performance audit functions and roles has changed and developed year by
year. More or less plausible claims can be made for the performance audit - like activities back to the 1960s or ever
considerably earlier. Performance audit, as a large scale of self–consciously distinct practice, dates mainly since the
late 1970s. Especially, it was widely spread in the 1980s due to number of factors:
(1) The scope of government activities has expanded multiple. From simple function of law and order as well as
administration of justice, most of the governments are now committed to play active role in socioeconomic
development. This has greatly increased the size of public expenditure;
(2) There are competing claims for resource allocation. The scarcity of resources demands a more rational and
informed decision- making on public expenditure. There is an urge for receiving full value from the money being
spent;
(3) The development of democratic institutions, the consciousness of the public and its representatives has also
increased. There is a growing demand for the accountability of those who manage public resources;
(4) The need to manage civil liability risk;
(5) The opportunities to increase efficiency gains through improved internal management systems, etc. (Brignall, and
Modell, 2000).
Thus, as governments ‘programs continue to grow in stature, public sector auditing has evolved and extended its
scope beyond mere financial or compliance audits to the auditing of performance to support policy makers in their
oversight role.
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Generally, Performance audit is about achieving the right balance between economy, efficiency and effectiveness,
the 3Es:
1. Spending less
2. Spending well
3. Spending wisely
So, Performance audit/value for money is high when there is an optimum balance between all three elements –when
costs are relatively low, productivity is high and successful outcomes have been achieved – in line with Progresso‘s
ethics (or values).
Figure 1; The relationship between Economy, Efficiency and Effectiveness of performance audit
2.1.4. The Basis of Performance Auditing
The guide line of performance audit implementation issued with joint effort of 29 SAI member countries and
INTOSAI (2004) state that public accountability is the root of performance audit. Public accountability means that
those in charge of a government program or ministry are held responsible for the efficient and effective running of
such. Accountability presupposes public insight into the activities of the program or ministry. Performance
auditing is away for taxpayers, financiers, legislatures, executives, ordinary citizens and the media to execute
control ‘and to obtain insight in to the running and outcome of different government activities (INTOSAI, 2004).
2.1.5. Objectives of Performance Audit
Cowater (2006), states the following eight prime objectives of performance audit: to maintain and enhance
public accountability; to improve accountability by strengthening the relevant supervising authority's reporting
to the legislature on the performance of government departments, agencies, projects and programs; to
act as a force for beneficial change in the
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management of resources and the achievement of value for money; to encourage improved value for money in
government departments, agencies etc. where improvements are found to be necessary and cost effective; to
identify well performing government organizations as possible lessons to be emulated by others; to enable to
provide independent information, advice and assurance about the 3Es in the major fields of revenue, expenditure
and management of other resources; and to induce and assist audited entities to take action where improvements are
shown to be necessary and cost effective.
2.1.6. Need of Performance Audit
According to Nusrat (2012), the need for conducting performance/VFM audit along with the conventional audits to
keep abreast of the emerging trends and techniques of modern audit the world over. The donors and development
partners whose main reform agenda reflect overriding concerns for good governance with stress on accountability
and transparency also echoed the same urge. The Financial Management Reform Program started in April 2003
in Bangladesh with the following aims:
1. T o strengthen auditing practice and information for improved parliamentary scrutiny of public financial
management;
2. T o enhance aggregate fiscal management and to develop the regulatory framework for financial and
performance management;
3. T o enhance resource allocation, utilization and financial management, resource management, and
performance management capacity in line ministries;
4. T o enhance financial management reporting systems;
5.T o build the capacity of the Financial Management Academy (FIMA) as a sustainable Centre of
excellence for financial management training in governance.
The auditing literature suggested three reasons for the need of performance auditing in the public sector. It is needed
to overcome the limitations of financial audit, to ensure the accountability of government agencies (Glynn, 1985)
and to improve performance of government agencies (Innes,
1998) as cited by (Nusrat, 2012).
(A) The Needs to Overcome the Limitations of Financial Auditing
The main purpose of financial auditing is to certify that the accounts of government agencies have been
prepared fairly, accurately and that the money was spent appropriately according to its purposes. This audit is
basically concerned with the financial statements of government agencies,
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which usually lacks information on the managerial aspects? However, there are often situations where the user
groups have an interest in the performance of government agencies, in addition to financial information. With the
expansion of accountability to emphasize on the utilization of scarce resources, the need arose for auditors to
provide some additional information on the value of outputs. Thus, performance auditing can be seen as an
attempt to provide an alternative solution to the limitations in financial auditing (Nusrat, 2012).
(B) The Needs to Ensure the Accountability of Executive
One of the primary objectives of performance auditing is to enhance the accountability of government
agencies by providing wider information to the Parliament and through them to the public. As previously mentioned
the financial audit mainly focuses on financial aspects and of accountability though, this type of audit is still
important and needs to be pursued. Accountability in the public sector occurs when both politicians and the
public at large are assured that public funds are being spent efficiently, economically and on programs that are
effective (Glynn, 1985).
For example, in Bangladesh, the parliament allocates the resources to the government for the implementation of
proposed programs. As part of the monitoring mechanism, the parliament obviously needs reports on the financial
affairs (based on financial transactions) of government agencies. However, since the resources allocated earlier
were for specific purposes, the parliament may also need information on how well the government has implemented
its policies and programs (Nusrat, 2012).
(C) The Needs to Improve Performance of Government Agencies
The need for a performance audit becomes obvious with increased government spending. Public sector auditors are
responsible for two separate tasks; first, the auditors need to ensure accountability of the executive to the
Parliament. The second task is to ensure the efficiency and effectiveness of the agencies operations (Morin, 2001).
She argues that performance auditing not only ensures and promotes accountability by providing advice and
recommendations. For instance, it was stated that an objective of performance auditing is to assist public
sector managers by identifying and promoting better management practices ‘.
2.1.7. Perception of Performance Audit in public sector
The Role of the Supreme Audit Institutions in New Public Management (NPM): The Board of
Audit discusses the differences between public and private sector that make performance audit
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effective for one but not for the other. The main aspect that significantly distinguishes private and public sector,
according to him, is accountability. In private entities, the management has to be responsible or accountable to the
shareholders, while in public sector, the government has to be responsible to the stakeholders. The shareholders in
a private entity include those who have shares in the organization, while the stakeholders in a public organization
have a wider definition as voters, tax-payers, society, parliament, and other interest groups. This shows that
performance audit has more challenges in public organization than in private entities (Nusrat, 2012).
A private organization generally has particular objectives that are relatively easy to define, for example profit. The
organization usually depends on the financial audit, because the value of money in the private entity is clear and
well defined. Its performance indicators are also relatively easy to define. On the other, there are many players
involved in public sector which make public organizations have broader and less clearly defined objectives. This
makes the achievement in public sector is more difficult to interpret or measure (Arens, et.al, 2012).
The continuous developments in VfM audit led to the expansion in external auditor‘s role as auditors are required to
take on multiple roles, which were not perfectly reconcilable with one another (Politt, 2003).
In the public sector it becomes even more difficult to assess performance or output as its performance
cannot be judged by a single parameter (Chowdhury, Innes &Kouhy, 2005).
Flesher and Zarzeski (2002), argue that the scope of public sector audit should go a step further than the standards
and procedures that are applicable to audits of financial statements and involve other roles. Such roles should
cover:(1) commenting on propriety, fairness and compliance of financial operations with laws and regulations; (2)
determining whether the public organizations are managing their resources economically and efficiently; and (3)
determining whether the desired results have been achieved, established objectives have been met and whether
public organizations have considered the minimum cost alternatives, which might yield the desired results.
The assessment of performance outcomes of public sector organizations and whether their resources are properly
managed emphasis on auditors are required to clearly determine in their reports if the audited bodies are properly
positioned to satisfy the three parameters of performance: effectiveness (ability to manage spending and increase
outputs); efficiency (ability to be productive); and economy (ability to minimize the service
inputs).Consequently, VfM
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Auditing emerged as powerful tool with which to reform public sector institutions (Lapsley and Pong, 2000;
Power, 2000; Sharma, 2007; Gronlund, Svardsten and Ohman, 2011).The adopted Performance audit as a tool to
keep pressure on public organizations‟ management in order to achieve the maximum outcome from the public
resources they are using, while simultaneously reducing public expenditure to the lowest possible level (Bowerman,
Humphrey and Owen, 2003).
According to Alwardat, Benamraoui, and Rieple, (2015), argue that different perceptions exist between auditors and
auditees on the purpose and usefulness of the current VFM audit process and practice. Auditees consider
receiving less value from the recommendations of auditors, which do not result in an improvement in audited
bodies‟ performance. Specifically, the paper explores the expectations‟ gap between auditors and auditees and the
factors contributing to the gap. Although the VfM audit plays a part in enhancing the institutional performance of
the public sector, much of the audit‘s practices have not been institutionalized in the audited bodies as had
previously been assumed. Questions were raised about the relevance of the auditor ‘s experience and knowledge of
the audited body ‘s activities. Our results also indicate significant role conflicts in the VfM process. Three types of
conflict could be identified; (a) conflict between the VfM auditors‟ roles and their own professional values and
standards (person-role conflict); (b) conflict between the VfM auditors‟ capabilities and their role requirements (role
overload), and (c) conflict between the auditors and the auditees (inter-sender conflict).
Auditors who are appointed to report on public organizations are expected to carry out their work not only to
maintain confidence in public sector spending but also to add value by reporting on how the organizations might
achieve improvement in the delivery of public services (Percy,
2001).
Bowerman, Raby and Humphery (2000), note that the performance audit is an important tool, but is only one of a
wide range of performance measurement and monitoring vehicles that are being used by public sector managers
and officials to improve accountability and performance. Bowerman (2000), argue that the performance audit
can be seen as just one element within a wide range of performance measurement and monitoring
vehicles (e.g. Self-assessment or inspection), which are being used by public sector managers and officials to
improve accountability and performance.
Morin (2001), notes that the auditors‟ style of leadership, their credibility in the eyes of the auditees and the
connotations perceived by the auditees in the influence modes, and the use of statutory power by the auditors, are
all factors that could enhance or hinder the effective performance of the VfM audit. The perception of performance
audit in public sector also implies an interaction between the auditors and their clients that constitutes an attempt by
the auditors to influence their clients both to make real change in the way they manage public resources and to
improve performance (Morin, 2001).
Undertaking a performance audit is essential to ensure efficient utilization of the yearly budget allocation by
government entities. It is also to provide greater public accountability and transparency in terms of public financial
management.
2.1.8. Factors performance audit
Any project performance audit model will face certain factors, which are prevalent in practice. First is the
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problem of measurement, which most often utilizes lagging measures instead of leading measures or forecasting.
Second is the difficulty of defining and measuring the three E‘s specifically for the project or program, the
problem of measuring the three E‘s when the auditor suffers from lack of visibility into the project decision-
making process and circumstances. Third, there is the problem of the engagement team – meaning a tendency
to focus on compliance, and pervasive use of best practices ‘checklists, in lieu of depth of industry and technical
knowledge (Nalewaik, 2013).
The fourth and fifth factors, however, are the biggest. Fourth is the cost of the audit; stakeholders must see the value
in conducting an audit that is appropriately broadly scoped; else the audit will be reduced to merely satisfying
regulatory requirements. And fifth, last but not least, is a concern that the entire effort of performance auditing
and continuous improvement is the chase of a Utopian ideal that is rarely achievable in practice, which will mean
nothing if audit findings are not resolved.
This project performance audit model is designed to overcome several issues currently experienced in industry: a)
annual audits of the same entity (performed in different years by different auditors with different methodologies) do
not consistently and effectively address the audit mandate (Nalewaik, 2013), and b) there sometimes occurs a
difference between audit scope and stakeholders‘ anticipations of the audit function (this is known as an audit
expectations
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gap‘).It is anticipated that, in addition to addressing the aforementioned issues, the model can aid in education of
both auditors and clients, resulting in improvement in procurement and scoping of project performance audit, and
achievement by auditors of more than the minimum standard of client care.
According to Waring& Morgan (2007), Challenges remain, however, in creating an institutional environment that is
conducive to reaping the benefits of a regular performance audit function. These challenges include the needs for
competent staff and leadership, stakeholder support, and organizational independence, none of which can be met by
mandates or pronouncements. Other challenges to staffing a performance audit function lie in the education and
competencies of the candidate pool. Performance auditors should be well educated and capable of continuous
learning.
The barriers to conducting and reaping the benefits of an effective government performance audit function
stem from the fundamental challenges facing development in Africa, including corruption, poverty, poor
governance, poor infrastructure, and a continuous brain drain to developed countries in Asia, Europe, and the
Americas (Madavo, 2005).
Performance Audit is hard to apply, particularly in the public sector of the developing countries due to the high
level of resources that it requires such as, costs, training in other disciplines other than accounting, an adequate
management information system and the definition of objectives (Al-Athmay, 2008).
Abdusalam (2005), in his Performance audit investigation in the Tunisian health sector found that the main
problems of conducting Performance audit in this sector are: the lack of information systems and internal control
systems; inadequate local standards and difficulties of applying international standards; and the lack of performance
indicators.
Al-Athmay (2008), furthermore, according to his interview with a PA unit ‘s officer found that there had been no
thorough investigation of government performance in Brunei owing to inadequate knowledge and skills of PA and
the lack of performance indicators and difficulties of performance measurement. On the other hand, some
developing countries have made great efforts to improve PA practice.
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2.1.9. Factors affecting of Performance audit effectiveness

Performance Audit related factors refer to a formal specification of the skills, knowledge and attributes of
performance auditors that are required to perform a specific job in an efficient and effective manner.
2.1.9.1. Capacity Building
Necessary space, office staff, modern electronic equipment‘s and other support services are prime
requirements that create a strong material base for the directorate to perform their designated assignments. Side by
side regular training programs, research facilities and assistance of a panel of experts go a long way in increasing
the faculty knowledge of the committee members for properly coping with the complex legislative business as
well as dealing with a rigid bureaucracy (Nusrat, 2012).
A person described as competent in an occupation or profession is considered to have a repertoire of skills,
knowledge and understanding which he or she can apply in a range of contexts and organizations ‘. In the
context of auditing, auditor competence also encompasses the above attributes. Audit competence requires both
knowledge and skill, which is the product of education, training and experiences ‘( Arens, et al, 2012). Based on
these definitions, it is clear that auditor competence is determined by considering a set of relevant attributes such
as knowledge, skill and attitudes. But if there is no such knowledge, skill and understanding which he or she can
apply in a range of contexts and organizations, the performance audit team should not get an effective result during
in the time of auditing.
2.1.9.2. Consultant Recruitment
The quality of performance audit is directly related to the people assigned to the audit. An audit procedure that
requires the exercise of judgment beyond the ability of the person expected to make the judgment will likely end
in failure. According to Performance Audit Manual of Canada, the audit team leader should identify at an early
stage in the planning process if specialized or technical skills, not available on the audit team, are required to
complete the audit. The early identification will allow the necessary lead time to acquire suitable staff from
within the Office or to obtain persons under contract.
According to Nusrat, (2012), the Office has an obligation to Parliament, the audited organizations, and the other
stakeholders to ensure that competent personnel conduct audits. This
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requires the audit team to possess, or collectively possess, the knowledge, disciplines, skills and experience to carry
out the audit effectively. This includes any specialists that are contracted to assist the team in any way. But if there
is not giving a consultation service among the public- sector auditors, the effectiveness of performance audit finally
will be low and getting ineffective results in achieving public sector goals and objectives.
The audit team should have:
1 . Knowledge of performance audit concepts and techniques and the ability to apply the knowledge;
 2. Experience and technical skills to effectively deal with the subject matter of the audit;
3 . Knowledge of the audit entity; and
4 . A general knowledge of the government environment.
Audit advisors should have the appropriate background and knowledge to effectively review and factor the key
decisions of the audit.
2.1.9.3. Awareness Level
Unlike compliance or financial audit performance audit is to some extent new approach not only in Bangladesh but
in the whole world. The scope and focus of attention are very much different from the age old financial or
compliance audit. Though audit personnel are listening to it for last one decade most of them are still not well-
conversant with this. So, it is well assumed that the awareness level among the auditee personnel would be much
less. The stakeholders of performance audit are also not aware of all the aspects of it. As it measures performance of
institutions the lack of standards, updated database, protocols or guidelines that can function as benchmark for
performance audit hinders the work (Nusrat, 2012).
2.1.9.4. Pre-Set Goals
According to INTOSAI (2004), Performance audit measures the performance of an institution or program or project.
All measurement needs a yardstick and targets to get the result. The institutions have their duties and responsibilities
expressed in the mandates or citizen charter. Performance is measured against those targets and pre-set goals using
those yardsticks (Nusrat,2012). Performance audit tells how economically resources are used, how efficiently the
management is getting the works done by using those yardsticks and how effectively the institution or project has
reached to its target or fails to reach there. Therefore, pre-set goals are
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one criterion for the entities to measure whether they are achieving their goals and objectives before conducting
their tasks.
2.1.9.5. Accountability
Accountability has understood as responsibility, control, answerability, responsiveness, management of

expectations, dialogue, and transparency (Bovens, 2005). Although all these concepts have similarities and
interrelate with that of accountability, they also differ and have distinguishing features of their own. Accountability
is best defined as ―a relationship between an actor and a forum, in which the actor has an obligation to explain
and to justify his or her conduct, the forum can pose questions and pass judgment, and the actor may face
consequences‖ (Bovens, 2005). Accountability may take different forms depending on its objective.
Schedler (1999) identifies eight types of accountability: political accountability, professional accountability, moral
accountability, constitutional accountability, legal accountability, administrative accountability, and financial
accountability.
Accountability: Accountability is the process whereby public-sector entities, and the individuals within them, are
responsible for their decisions and actions, including their stewardship of public funds and all aspects of
performance, and submit themselves to appropriate external scrutiny. All parties having a clear understanding of
those responsibilities, and having clearly defined roles through a robust structure achieve it. In effect, accountability
is the obligation to answer for responsibility conferred‖ (IFAC, 2001). Thus, managerial accountability in the public
organizations involves holding the managers accountable for the use of public resources.
Odia (2014) argues that good governance occurs when governing bodies fulfil their accountability
obligations to those whose interests they represent by reporting on their organizations performance. Independent
body for its accuracy against the actual work done evaluates the performance report of every government
organization. External audit work is one of the evaluation or control mechanism.
Public accountability pertains to the obligations of persons or entities entrusted with public resources to be
answerable for the fiscal, managerial and program responsibilities that have conferred on them, and to report to
those that have conferred these responsibilities. Accordingly, elements of public accountability and tools of public
accountability have shown below. Elements of Public Accountability:
1 . The recognition of the responsibility
2 . The provision of information on performance in a manner which users can interpret accurately
3. The potential to impose sanctions
Tools of Public Accountability:
1. Legislative overview
2. Judicial review
3 . Internal audits
4. External audits
5 . Media
6 . Civil society organizations
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For instance, Glynn (1985) has argued that a number of institutional innovations, all of which designed to increase
the accountability of public sector organizations, accompanied the introduction of value for money auditing in
Canada. He also suggested that accountability in the public sector occurs when both politicians and the public at
large assured that the public funds have spent efficiently, economically and on programs that are effective.
Performance auditing assists this process by reporting upon management’s performance at all areas of
government levels.
2.1.9.6. Top Management Support
The support and commitment of management also have the certain impact to make sure IA is functioning
effectively. The success of IA function will depend on the strength of management‘s support for the auditing
process. They have to accept the fact that the IA process is just as critical and important activity as any other
process within the organization. Some study found that without management approval, support, and encouragement,
the IA audit process is likely to face failure and worse time and money wasted. It is not surprising that management
acceptance of, and support for, the internal audit function has long been seen as critical to the success of that
function. Several recent studies have demonstrated that support for internal auditing by top management is an
important determinant of its effectiveness (Odia, 2014). Funding, of course, is an important measure of such
support: IA departments must have the resources needed to hire the right number of high-quality staff, to keep
up-to-date in training and development, to acquire and maintain physical resources like computers, and so on.
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Mihret and Yismaw (2007), on their study also found that IA recommendations are not afforded enough attention.
Though the audit reports are generally well prepared, they do not separately highlight the status of past audit results
and they could be presented in a more consistent way. Besides, the audit evidence is attached to the reports. This
provides a bulky appearance of the audit reports and reduces readability. The distribution of the audit reports is
limited where copies are not provided to other senior management officers to which related to audit report.
Therefore, the top management support in performance auditing also a very crucial for getting sufficient information
during the time auditing and achieving the audit objectives.
2.1.10. Phases in Conducting the Performance Audit
According to Waring& Morgan (2007), Performance auditing is carried out in three phases: planning, fieldwork,
and reporting. The methods used to carry out the phases vary widely among auditing organizations around the
world. Performance audits are well suited to being conducted in a team environment, as a diversity of
perspectives and experiences can enhance the value of the product. To ensure harmonious functioning, all parties
involved in the assignment must understand and accept their roles and responsibilities. Most fundamentally, they
must agree on and share a basic understanding of the performance audit‘s objectives.
Throughout the audit, performance auditors will need to communicate actively with members of the audited
institution. The auditor‘s motto in terms of auditee relations should be ―no surprises. The audit begins with an
―entrance conference, which is used to introduce the audit team to the management staff and key employees of the
institution being audited. Following the entrance conference, auditors should brief managers at all levels on a
periodic basis: one of the worst mistakes an audit team can make is to assume that the liaison or manager most
closely involved with the audit will keep his or her peers and upper management informed about the audit‘s
findings. This rarely, if ever, happens in the real world of audit communication (Waring& Morgan, 2007).
2.1.10.1. Planning Phases
According to Waring& Morgan (2007), unlike financial audits, performance audits are seldom repeated.
Consequently, audit tests and procedures that apply to one audit will not necessarily be relevant or useful in the next
audit. For example, the measures for success of a school such as the completion rate for students entering the
program or the ultimate percentage of graduates
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who become gainfully employed have no relation to the measures of success for a road construction activity. This
variation among the government‘s programs means that auditors must create a unique audit to evaluate the most
significant issues of each program.
Unlike in audits of financial statements, in a performance audit the objective of fieldwork is often developed
after the audit begins based on an assessment of the risks and vulnerabilities associated with the activity being
audited. However, in some cases the performance audit is initiated at the request of parliamentarians or ministers.
When this is the case, the audit‘s objective can be established at the outset, based on their specific questions or
concerns.
Auditors must ensure that their own managers participate actively and continuously raise questions during the
planning phase. They can encourage this participation by submitting a written plan that details the steps, schedule,
and resources that will be used to accomplish the five phases of planning:(a) gathering information; (b)
conducting a risk assessment; (c) assessing the vulnerabilities to the significant risks of the program; (d)
defining/refining the audit objectives; and (e) developing the audit scope, audit methodologies, fieldwork programs,
and audit budget/resources (Waring& Morgan, 2007).
2.1.10.2. Fieldwork Phases
The fieldwork program sets out the required tasks and maps out processes for each aspect of fieldwork. While the
exact steps to be followed are specific to each audit and determined in the fieldwork plan, some data collection
considerations are common to all audits. The audit teams ‘s composition, characteristics, and training must be
adequate to minimize bias and interpretation errors. Ensuring that the sampling strategies are appropriate for the
evaluation questions improves credibility. The audit manager can also elect to obtain an opinion on the adequacy
of the methodology from an independent party. When undertaking data analysis and interpretation, it is important
to ensure that all competing explanations for effect and cause are considered (Waring& Morgan, 2007).
Teams should be trained to look for data that will negate their initial findings. Important values that apply to all
stages of the fieldwork process are to be careful and precise and to limit the final interpretation and description of
the data to the boundaries set by the characteristics of the methods used and data obtained. Auditors classify the
information they collect into four types: testimonial, documentary, analytical, and physical (in order of increasing
strength). As the audit team begins to plan the audit procedures, it should consider the types of evidence
and
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information it will be collecting and build in means to ensure that the information will be relevant to the
audit objective and sufficient and competent to support expected conclusions (Arens et al., 2012).
2.1.10.3. Reporting Phases
According to Arens et al., (2012), for each audit, the audit team will have determined the means of reporting the
audit findings at the beginning of the fieldwork. The decision on reporting medium will be based on the audit
organization‘s relevant auditing standards and the customer‘s needs both for timeliness in receiving the audit results
and for the ultimate use to which the findings will be put. Audit reports may take the form of a complete report that
describes the audit objectives and fully describes the conclusions along with the evidence that supports those
conclusions, or they may be provided in the form of a high-level presentation that highlights the objectives and
results in a series of headlines. Other, less conventional media for audit reporting include video- or audio-taped
presentations by the auditors and one-on-one briefings by the auditors to the requesters of the audit.
According to Waring& Morgan (2007), the performance audit report is not a prewritten, fill-in- the-blank form. In
order for it to be used effectively, the audit report should be clearly understandable to its intended audiences.
All audit reports must contain an explanation of the origination or reason for conducting the audit; sufficient
background on the audited activity to enable readers to understand its findings; a clear statement of the audit
objectives; a description of the scope and methodologies; the audit findings; and conclusions and comments by the
responsible managers over the audited activity. However, the results of the audit are communicated, auditors should
take care to ensure that the results are documented in a form that is retrievable, to ensure that the public and other
interested parties have appropriate access, in accordance with the government‘s transparency laws, and to enable
oversight authorities to review and provide ultimate accountability for the findings and audit recommendations
(Waring& Morgan, 2007).
2.2. Empirical Review on Performance Audit in Public Sectors

In addition to the above theoretical recognition of performance audit and its importance in public sectors, it is
important to examine some of the empirical studies that had carried out on the
contribution of performance audit and its factors at implementation in the public sectors.
According to John Elliott (2002), this article examines some of the consequences of value for money audit systems
on professional practices in general and those of teachers in particular. The article argues that value for money audit
actually prevent professionals from evaluating their practices. This is because it confuses outputs with outcomes
and fails to empirically validate the former as indicators of effectiveness in particular contexts of action. The article
also argues that the shift from external to internal audit and evaluation processes should not be misunderstood as a
move towards greater professional autonomy and a higher trust form of accountability. It is argued that internal
audit is a more exacting expression of power over the activities of professionals than external audit.
According to Tadele (2012), The research focuses on assessing the factors affecting auditors and performance audit
development, on identifying pitfalls faced while performance audit conducted and used as a tool against
corruption, and also on strategic relationship of OFAG (Office of the Federal Auditor General) and ONRSOAG
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(Oromia National Regional State Office of Auditor General) with their respective FEACC (Federal Ethics and
Anti-Corruption Commission) and PAASC (Public Accounts Affairs Standing Committee) in each state.
Based on his finding, the practice of performance audit in Ethiopia aged more than two decades and only about
50 audit reports produced by OFAG. Even though each report is full of finding with probable corruption clue
areas EACC not used it as an input in fighting corruption. Additionally, the results show that problems faced
auditors and corruption suspicion findings valued in millions of amounts. According to Nusrat (2012), this study
focused on the challenges in the context of the Performance Auditing. The importance of the performance
audit function in Bangladeshi public sector, combined with recent developments related to this type of audit in
the country (such as increasing expectations among the users and associated problems in practice) were the
reasons for conducting the study in this area. Thus, the study aims to identify the existence of the factors
affect on performance audit in the public sector of Bangladesh. In achieving this objective, it explores the
perceptions of auditors and auditees. The findings of this study indicated that the challenges in the
implementation phase of performance audit exist in the Bangladeshi public sector. These comprise insufficient
and incompetent manpower, unable to recruit consultant when needed, lack of awareness and absence of pre-set
goals among the auditees.
Morin (2004), in the study entitled measuring the impact of value-for-money audits: a model for surveying audited
managers indicated that the practice of value-for-money legislative audits was conceived to improve the management
of public programs by making it more economical, more effective, and more efficient. The study examined the
impact VfM audits have had on the management of organizations in the government of Quebec based on survey
model of inquiry. The variables measured in this article include the value that performance audit adds to the
audited organizations, the relevance of the recommendations formulated by the auditors, the deterrent of potential
audits on public sector managers, and the changes that occurred in the audited organization s management practices.
Morin also includes relations that performance audit has with its stakeholders or citizen for accountability, the
ways in which the auditor’s report has been useful to the auditees, the concrete actions taken following VfM
audits, the Organizational and personal consequences of the performance audits.
Reichborn-Kjennerud (2011), in the research title the influence of performance audits on civil servants-what
contributes to improvement and accountability in the audited entities? Indicate majority of the respondents saw that
performance audit as useful. This study uses a questionnaire to civil servants that have experienced performance audit
to investigate the influence of performance audit. Good quality reports that contributed to learning and considered
comments enhanced their perception of usefulness. Likewise, their agreeing to assessments and perceiving the Office
of the Auditor General as an institution furthering improvement and transparency contributed positively. Media
interest, pressure from political opponents, interest groups and the Standing Committee on Public Accounts, as well
as the audited Civil servants position in the organization had an impact on the accountability dimension. These
results show that control in a New Public Management regime can make the government administration improve, but
is contingent on how the audited civil servants perceive of the performance audit. The outcomes of such a shift in
countries are worth assessing as to whether they are successful in enhancing accountability, the take-up of
recommendations and useful public awareness; and whether they lead to any negative responses from the executive.
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According to Daujotait and Macerinskien (2008), based on the finding, performance auditing is an area new
enough in the history of auditing. Its growth parallels the evolution of politics and public administration from one-
dimensional focus on control of inputs (resource) towards broader attention to accountability for outputs and
outcomes. The causal relation between
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management ‘s reforms and the developments in performance auditing may theoretically go in two directions:
reform causes new audit practices or new audit practices cause the reform. Empirically, the relationship is mainly
one directional: management reforms trigger an adoption of audit practices. On the audit side, new public
management has influenced development of the audit. This evolution of auditing represents both: a means by which
audit can continue to be relevant and a move towards fulfilling accountability role in governance. The research of
the paper authors deals with performance auditing development including the relationship performance management
and performance audit models. The use of logic models can help the audit to identify and set out the relationship
between the socio-economic needs, to be addressed by the intervention and its objectives, inputs, processes, outputs
and outcomes, which include results and impacts.
Manaf (2010), in his study entitled the impact of performance Audit: The New Zealand experience indicates that
performance audit is an innovation that emerged amidst accountability concerns in the public sector. Economic
crises, ministerial scandal and inefficiencies were among the impetus that led the public to demand better
performance and greater accountability in the public sector, and performance audit was among the many responses
to such demand. His study looks at the impact of performance audit on seven entities audited in 2006 by the
Auditor General of New Zealand. His study found that the entities influenced through the manifestation of
implemented audit recommendations and the attainment of performance audit goals. In particular, there is a high
acceptance and implementation rate to the audit recommendations made in the seven audits. The implementation
of accepted recommendations consequently led to the changes within the entities in terms of managerial practices, as
well as internal systems and processes. In some entities, these changes translated into performance improvement,
where the entities experienced changes in the way that they carried out their operations. Whilst the auditees found
the audit recommendations useful, the impact on performance in their view has not been significant. Rather, the
auditees viewed performance audit as having a more important role as an assurance tool in terms of their
accountability to the public.
Mohammad (n, d), in his paper Audit in Bangladesh ‘briefly discusses the factors affect on performance audit. He
says that the existing status of Performance audit in Bangladesh clearly indicates that progress in the field is slow.
So, there should be adequate strategies in place to give pace in the currently taken initiatives. He recommends some
measures to be taken and those are:
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Establishment of a Planning and Monitoring Unit, Human resource management and planning, Working
environment in Performance Audit Cell, Building awareness among the key stakeholders, Establishing a knowledge
Centre, Separate advisory committee for each audit assignment, Entity clearance on conclusions and
recommendations of the audit report, Restructuring of power and authority of the Auditor General, Independent
advisory committee for the Auditor General, Peer review, Separate enactment for VFM audit, and so on. But the
challenges or problems of performance audit are not discussed.
According to Salem (2015), in his study entitled Improving Performance Auditing Practice in the Libyan Public
Sector, the researcher reported the results of a survey and the interviews of attitudes and perceptions of performance
auditors and public-sector managers about the nature and effectiveness of the current system of performance
auditing (PA), in Libya. The results revealed that PA in Libya is still in its infancy due to the fact that Libya, as a
developing country, lacks the information, internal control systems, performance measures and sufficient audit staff.
The purpose of this paper is to extend the earlier researcher survey by exploring the perceptions of performance
auditors and public-sector managers about how PA in the Libyan public sector can be improved. The results
reveal that the PA system in Libya can be improved through the adoption of certain procedures, of which the most
important are improving performance auditors ‘skills and attention being paid to PA by the legislative and
administrative officials at higher levels in Libya.
2.3. Inferences Drawn from Above Empirical Works
Some empirical works have done regarding contributions of performance audit and also impacts and factors of
performance auditing in public sectors. Review of the literature showed that researches of different scholars using
empirical investigation resulting in different findings. For instance, empirical study found that challenges and
impacts of performance audit in public sectors (Nusrat, 2012; Mohammad (n, d); Manaf, 2010; Morin, 2004). They
also add that some of public sectors have negative perceptions on performance audit conducted by auditors and the
influence made on the public sectors.
Though some of the articles mentioned above discuses few problems or limitations of performance audit none of
them deals with developing country context. So, there is ample scope to work on the topic factors affect on
Performance Audit ‘in Ethiopian context as no research till now has been found on it.
3. RESEARCH METHODOLOGY
Research methodology is the way that shows how the researchers systematically arrive at the solution of the
research problems (Kothari, 2004). The following sub sections describe the research methodology that consists
of the study area, study design, source of data, identify study subject/population, sampling methods used, determine
sample size, sources of data and methods of data collections, and data analysis techniques and also it includes
conceptual frame work.
3.1. Description of Study Area
As the study area, this research bases on public sectors in Amhara National Regional State on which performance
audit conducted on them at the regional level. Amhara region is one of the nine ethnic divisions of Ethiopia,
containing the homeland of the Amhara people. The State of Amhara is located in the north western and north
central part of Ethiopia. The State shares common borders of with the state of Tigray in the north, Afar in the east,
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Oromia in the south, Benishangul-Gumuz in the south west and the Republic of Sudan in the west. It covers
approximately 161,828.4 sq.km in area and this is 11% of the Ethiopian total area and is moderately compact in
shape. This land consists of three major geographical zones. There are highlands (above 2,300 meters above sea
level), semi-highlands (1,500 to 2,300 meters above sea level) and lowlands (below 1,500 meters above sea level)
accounting 20%, 44%, and 28% respectively. The State of Amhara consists of 12 Administrative zones, one special
zones, 113 woredas, 3,216 kebeles and 78 urban centers. Amharic is the working language of the region. The
capital city of the state of Amhara is Bahir Dar; it is located approximately 565 km of north- west of Addis Ababa.
The city is located on the southern shore of Lake Tana, Ethiopian largest lake and the source of the Blue Nile. Due
to shortage of resources, the study would be considered few audited public-sectors at regional level that found in
the capital city of the region at Bahr Dar city.
3.2. Research Design and Approach
Research design is a blue print for selecting the sources and types of data relevant to the research questions. It
basically, provides answers for such questions like: what techniques to be used to gather data? And what kind of
sampling to be applied? (Zikmund et al., 2003). To collect data the researcher used survey research design. This is
because the survey design is preferable to conduct research employing large number of people questioning about
their attitudes and opinions towards the specific issue, events or phenomena (Marczyk & DeMatteo, 2005). It also
enables the researchers to effectively administer and manage the tasks when the data collection takes place. The
study applied cross-sectional survey since the data were collected at one point in time from the sample respondents
to describe the total population).
3.3. Source of Data
The source of data used for this study was both primary and secondary source of data. The primary source of data
would be collected from employees of Amhara National Regional State selected public sectors and the Regional
Office of Auditor General and the secondary source of data would be collected from written manuals and internal
documents of the organization, any Report, Auditors document, books and journals etc...
3.4. Target Population
The target population of the study here would be the employees of those five (5)-public sectors which include,
Finance department, Purchase department and Audit department the concerned departments of performance audit was
the targeted population because they involved particularly in the performance audit of their sector. ANRS Finance
and Economic Bureau, Amhara Revenue Authority, Amhara Education Bureau, Regional Road development and
Transport bureau and Office of Auditor General of Amhara Regional State Bureau.
3.5. Sampling Design Procedures and Sample Size Determination
The study used five regional public sector bureaus as the study areas with a total number of 284 employees i.e.
ANRS Finance and Economic Bureau, Amhara Revenue Authority, Amhara Education Bureau, Regional Road
development and Transport bureau and Office of Auditor General of Amhara Regional State Bureau, are some few
public sectors being selected by the researcher purposively on which performance audits are conducting on them
from the beginning of the year 1987 to 2009ec at regional level public-sectors.In the determination of sample size the
three criteria was very important to gather the required data from sample respondents. These included the level of
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precision, the level of confidence or risk and the degree of variability in the attributes being measured that enable the
researchers to determine appropriate sample size (Miaoulis & Michener, 1976). Therefore, by considering these
issues sample size to collect data through questionnaire for this research will be determined by using Yamane’s
(1967) formula.
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Where: n= the sample size

N=the study population
e= the level of precision
1= designates the probability of the event occurring
Therefore,166 respondents were used as sample for this study to gather date through questionnaire.
The researcher deems necessary to take independent sample for each regional public sector bureaus to ensure equal
representation because public sector bureaus have different number of employees. Therefore, the sample size for each
regional public sector bureau was calculated using proportion. The study was used proportionate sample allocation
formula so as to make each stratum sample identical with proportion of the population. Therefore, proportional sample
size from each stratum was calculated by using the following formula.
Where:
= sample size for individual department
= the total number of public sector employees in each department
= the total number of public sector employees in the selected bureaus
= the total sample size for selected bureaus

Source: (http://ocw.jhsph.edu/courses/statmethodsforsamplesurvey
Table 3.1: Proportionate sample for each department
Total no of employees in No of sample size in
No List public sectors each department each department
1 Finance department 112 65.50=65
2 Purchase department 82 47.9=48
3 Audit department 90 52.6=53
Total 284 166
Sources: civil service bureau (2019).
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By taking the above Table, in to consideration, the researcher was selected 166 sample respondents from the total member
of these each public sectors using proportional methods.
3.6 Sample Technique
The researcher used probability sampling method also called simple random sampling (lottery method). Having
selected such number of sample respondents, the questionnaire was distribut by using simple random sampling
(lottery method) to get each respondent from each regional public sector bureau based on sample frame (list of
employees). This sampling technique was chosen as it gives each member of population equal chance of being
selected and homogeneity of population characteristics. Therefore, the application of simple random sampling is
appropriate whenever the target population has such characteristics (Creswell, 2003
3.7. Methods of Data Collection
In order to gather relevant and required information for the successful accomplishment of the study, the researcher
would be used both primary and secondary sources of data from the public sectors on which performance audit have
conducted. The researcher would be collected the primary data through close-ended and open-ended questionnaire,
which were distributed to employees involved in the performance audit process especially from management
groups/units, finance and administration units, internal audit units, purchase departments, and departments on which
performance audit are specifically conducted. The questionnaires were divided in to two parts. The first part focused
on demographic information such as, gender, age, level of education, area of assignment or their work position
(level) in their organization. The second part focuses on specific questions regarding factors affect on performance
audit on enhancing accountability and performance improvement in the public sectors
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.The close-ended questionnaires would be developed based on a 5-point Likert-scale rating method so that the
respondents can have options to answer and responses would be analyzed statistically. In developing the
questionnaires, respondents would be expected to answer the questions based on their knowledge as Strongly Agree
(SA), Agree (A), Neutral (N), Disagree Agree (DA) and Strongly Disagree (SDA). A response of strongly agree
takes 5 points, agree takes 4 points, neutral takes 3 points, disagree takes 2 points and strongly disagree takes 1
point. Johns (2010), indicates that a Likert-scale is the scale named after its inventor, psychologist Rensis Likert,
and can have used in questionnaires to obtain participants preference or degree of agreement with a statement or
set of statements. For open-ended questions the respondents would be asked to suggest their judgment. In addition to
this, the researcher would be collected the secondary data from manuals and other internal documents of the audited
public organizations.
3.8. Methods of Data Analysis
After data would be collected through primary and secondary sources, the study was analyzing through
quantitative and qualitative data analysis techniques that ensure the objective of the study. The two
distinguishable research methods are quantitative and qualitative approaches. The quantitative research quantifies
the results of people‘s words, actions and records – the meaning given to the words, behaviors and documents as
interpreted through quantitative analysis or statistical analysis (Berg ,1995).
The quantitative research method relies on the collection of data based on numbers. Descriptive statistics tools such
as frequency, valid percentages, mean and standard deviation of results would be used for the descriptive type
of objectives to analyze the data collected using questionnaires and while inferential analysis techniques would
be used to explore the relationship between variables by using associational inferential statistics particularly
Pearson Correlation and Ordered Logistics regression analysis with the help of statistical package for social science
(SPSS) 16 software would be used to analyze the data collected using questionnaires. The analysis results of the
questionnaires would be presented by use of tables. And then findings would be presented, discussed and
interpreted in which relevant to the research objectives. The data are also coded and entered into Microsoft excels
spreadsheet. Data collected on background of the respondents would manually analyze using percentages and
frequency.
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To interpret the descriptive statistical and inferential analysis results of mean and standard deviation the
researcher has reassigned the scales here to make the interpretation easy and clear. According to Tadesse (2015)
quoting the work of Best (1977), consensus agreement if the mean value fall under the following ranges, it has the
following meaning and interpretations that the researcher would be used the same. If the mean result is 1.00-1.80
lowest for strongly disagree,
1.81-2.61 lower for disagree, 2.62-3.41 average or moderate for neutral, 3.42-4.21 is good/ high for agree, and
finally 4.22-5 is considered very good for strongly agree.
In addition to quantitative research approach, qualitative approach would be considered appropriate for this
research from a technical aspect; this study aims to explore the factors affect on the performance audit, the factors
contributing to those factors and the perceptions of participants on the audit functions and audit reports.
3.9.1. Measurements of Independent Variables
As this research, it uses six independent variables against one dependent variable; this does not mean these six
variables only can fulfil all the demands of fruitful performance audit. These six were selected as the indicators of
these independent variables are measurable. More indicators will be taken but to limit the scope of the research
only few indicators were taken. To measure each independent variable there are lots of indicators. But for the time
constraints and convenience of the research only few indicators were taken. Again, these indicators are also used
in a very limited sense. For example, professional training only means performance audit related training that is
conducted only by the directorate of performance audit. The indicators were taken for measuring the independent
variables are shown in the table below:
Table 3.2: Measurements of Independent Variables
Dependent variable Independent variable Measurement/Indicators
Performance Audit Lack of Capacity building Professional training, sufficient and

Ineffectiveness (Audit of economy, Competent staff, electronic equipment
Audit of efficiency, Audit of
effectiveness, Facilitate follow-up
procedures, Invitation of
independent experts and foreign
specialists, accuracy and reliability Absence of Consultant Skilled and experienced manpower,
of financial reports.) recruitment ‗right man in the right place‘
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Lack of Awareness level Updated database, guidelines

orientation/training program,
supportive executive
Absence of Pre-set goals Key performance
indicators, achievable goals
Absence of Accountability Supreme audit institution,

Organized Audit Committee,
accountability of board members.
Lack of Top-management Response to performance audit

Support finding, Commitment to
strength internal control.
Source: Nusrat, (2012) (with minor modifications)
1.Dependent Variable
The dependent variable is the variable that is the effect or is the result or outcome of other (independent) variables
(Neumann, 2007). In this study the dependent variable is the ineffectiveness of performance audit as explained
below.
Ineffectiveness of performance audit: -Effectiveness is concerned with the outputs. It is about
Ensuring that the output from any given activity is achieving the desired results (Glynn, 1985), regardless of the cost
involved. Ineffectiveness is concerned with not achieving predetermined objectives with the actual impact compared
with the intended impact.
2. Independent Variables
The independent variables are the cause variables or the one that identifies forces or conditions that acts on
something else (Neumann, 2007). In this study, the six independent variables are as explained below.
(a) Lack of Capacity Building: -A person, who do not describe as competent in an occupation or profession and
considered to haven.t a repertoire of skills, knowledge and understanding which he or she can apply in a range
of contexts and organizations‘.
(b) Absence of Consultant Recruitment: -The quality of performance audit is ineffective related to the
people assigned to the audit. An audit procedure that requires the exercise of judgment beyond the ability of the
person expected to make the judgment will likely end in failure. So, the audit team should not possess, or
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collectively possess, the knowledge, discipline, skills and experience to carry out the audit effectively.
(c) Lack of Awareness Level: -Unlike compliance or financial audit, performance audit is to some extent new
approach so; it is well assumed that the awareness level among the auditee personnel and auditors about
performance audit would be much important. But those parties they lack awareness about performance audit
importance.
(d) Absence of Pre-Set Goals: - Performance audit measures the performance of an institution or program or
project. All measurement needs a yardstick and targets to get the result. But the performance is not measured
against those targets and pre-set goals using those yardsticks because of the absence of giving priorities for pre-plan
by the audited entities.
(e) Absence of Accountability: -Accountability is the process whereby public-sector entities, and the
individuals within them, are responsible for their decisions and actions, including their stewardship of public funds
and all aspects of performance, and submit themselves to appropriate external scrutiny. But because of Absence of
accountability, a person who assigned for one responsibility not accountable for bad or good works in the public-
sector entities especially in developing countries.
(f) Lack of Top management support: -The support and commitment of management also have the certain impact
to make sure IA is functioning effectively. The success of IA function will depend on the strength of management‘s
support for the auditing process. But if there is no a management support for each activity i n public-sector
organizations, there is no the achievements of organizational goals and objectives in a given period of time.
3.9.2. Measurement of Variables and the Regression Model
As it is already mentioned above the dependent variable in this study is the performance audit ineffectiveness.
Ineffectiveness of performance audit is measured using the five-point Likert Scale of ―1-Strongly Disagree, ―2-
Disagree, ―3-Neutral, ―4-Agree and ―5-Stronly Agree. As per the hitherto existing literature, it is possible to
measure these variables by primary data Questionnaire. This measure is expected to bring a reliable result after the
collection of the data and its analysis.
The regression model below reveals that there is a causal relationship between one dependent variable (ineffective
performance audit) against six independent variables (Lack of Capacity Building, Absence of Consultant
Recruitment, Lack of Awareness Level, Absence of Pre-set Goals, Absence of accountability and Lack of Top
management support) and therefore, Ordered Logistics regression analysis would be used for the study. The reasons
behind using this model is when the response variables of interest are ordinal, it is advisable to use a specific model
such as the ordered logit model (Grilli & Rampichini, 2015).
The full regression model for the empirical investigation in estimating Factors that might explain the factors affect
on performance audit implementation in selected ANRS audited public sector is given as:
PAIE = f (CB, CR, AL, PG, A, TMS, ε)
Whereas:
PAIE= Performance Audit Ineffectiveness

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CB=Lack of Capacity Building CR=Absence of

Consultant Recruitment AL=Lack of Awareness
Level
PG=Absence of Pre-set Goals
A=Absence of Accountability
TMS=Lack of Top Management Support
ε=Classical random error term
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3.10. Validity and Reliability of the Study

The researcher had been conducting pilot study to pre-test, and measure the reliability and validity of the
research. The objective of the pilot test was to determine the appropriateness and relevance of the questions. This paved
the way to refine the wording, filter the questions and consistency of variables.
Validity refers to the extent to which a method of data collection presents what it is supposed to do (Altman. and
Bland, 1999). To establish the validity of instruments, the researcher worked together with the advisor to ensure that
the questions are properly framed and they can provide the required data for the study.
The reliability of the instrument to be used in this study was tested through a pilot study that was conducted using a
sample of 10 respondents from the performance audit responsible parties. This was in accordance to Mugenda and
Mugenda (1999), who suggested that for a pilot study a sample of between 1-10% is appropriate. The reliability was
measured using Cronbach‘s alpha by the help of the statistical package for social sciences (SPSS)Version 16.Struwig
and Stead (2001), describe Cronbach‘s alpha as a measurement of how well a set of items measure a single one-
dimensional talent construct. The purpose of the pre-test is to verify the logical consistencies, detect problems with
a questionnaire, and estimate the reliability of the questionnaires.
3.11. Ethical Considerations of the Study
In the first place, the department approved the thesis proposal. In addition, the researcher followed logical procedures in
every stage of data collection processes. Accordingly, the respondents were introduced about the purpose of the study
then informed consent from the respondents and responsible officials of the civil service bureaus covered by the study
was obtained to discuss with and interview them about the subject under study. Therefore, on the basis of these ethical
principles, efforts were made and confidentiality would be assured and kept throughout the process of this research work.
4. DATA ANALYSIS, PRESENTAION AND DISCUSSIONS
4.1.Introduction
This chapter presents the discussions and analysis of the feedbacks gathered from the respondents through
questionnaire. The study tried to assess factors affect on performance audit implementation selected public sectors of
Amhara National Regional State. In this chapter the major findings of the study were analysed and discussed in line
with the stated specific objectives that lead to draw conclusions and recommendations.
4.1 Response Rate Analysis
The study targeted five (5) public sectors to collect the research data. Managers of the sample- public sectors were
those communicated to identify the departments and key employees that participated in the works related to the
performance audit during which it had performed by the performance auditors. Thus, using the structure of each
public sector to have those who can provide information based on their experience and responsibility one-hundred
sixty-six (166) respondents have selected purposively from targeted population of these two hundred eighty-four (284)
populations. Questionnaires have given to five (5) selected as informants from those public sectors. All distributed
questionnaires were filled up and returned with response rate of 100%. To supplement data collected through
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questionnaire were administered by the researcher with key informants and focus group participants in each selected
bureau concerning the subject under study.
4.2 Profile of the Respondents
Respondents background analysis result that obtained from part one of the questionnaires presented in this part.
Figure 4.1 Sex of the Respondents
Source: Survey results (SPSS, 2020)

As observed from the above response figures, the numbers of male respondents are 112 and female respondents are 54
in number. When expressed in percent male respondents are 67.5% and female respondents are 32.5%, this
implies that public sectors bureaus were dominated by male employees and female’s participation was low relative to
male respondents.
Figure 4.2 Ages of the Respondents

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As it seen from the above figure, is that the age of interval of the respondents. In this regard, the majority
78(47%)of the respondents in the selected public sector bureaus were found in the age interval of 31-40
years which signifies that the bureaus have mature and well experienced staffs who have productive and
potential prospects. Following 59(35.5%) of the respondents were found in the age interval of 20-30 years
were the remaining 19(11.5%)and 10(6%) of the respondent full under the age category of 41-50 and above
50 years respectively and there are no respondents below ages of 20 years. Generally, the majority of the
respondents of public sector bureaus were middle aged by taking ILO (2003) as reference implying they
could have good productive prospects.
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Figure 4.3 Education Levels of Respondents
From the figure above, Educational background of the employees is an important factor in undertaking their respective
responsibilities and to make critical decisions in their working public service bureaus. Considering the respondents’
educational level majority of respondents 101 (60.8%) were first degree holders whereas 15 (9.0%) of them were Masters
and above and 50 (30.1%) were at diploma level. Which were 15 in numbers the analysis results show that respondents
are educated and their educational level can help them to respond with good understanding of the questions and help to
some extent to obtain complete information about performance audit.
figure 4.4 Work Position of the Respondents
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As seen on the above figure 9% of the respondents were top management members, which were fifty (15) in
numbers, 21.10% were from middle management members, which were thirty five(35) in numbers, and 69.90% were
at the operational levels which were one hundred sixty (116) in numbers. This analysis result indicates to show
that accountability exists at all management levels and employees concerned to the work to be improved
performance. In addition, to obtain complete information from all levels of management in these selected public
sectors.
Table 4.5 Filed of the Study of Respondents
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As seen on the above table 51.30% of the respondents were studying Accounting, which were eighty-six (86) in
numbers, 7.83% or thirteen (13) in numbers are Management, 29.52% of the respondents were studying Economics,
which are forty-nine (49) in numbers, 6.02% are Marketing, which are in number ten (10) and also 4.82% of the
respondents were studying Other Field of study, which were in numbers four (4). This indicates that most of respondents
included in this study were studying Accounting. This is important for the researcher to get information about factors
affect on performance audit from concerned departments and to answer research objectives rather other departments
because study of accounting have more knowledgeable than of marketing, economics, management and other departments
4.3. Perception of Public Sectors Auditors on the Performance Audit
Perceptions of the Public Sectors Auditors on performance audit regarding to the statements presented in the following
table have considered assessing the improvements of performance audit. Positive perceptions by employees of the
selected public sectors on performance audit can result in the usefulness to the audit for their organizations and for
the employees themselves to evaluate performance and then to take corrective measures (Morin, 2001).
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Table 4.6 Descriptive Statistics Perception of Public Sectors Auditors on the Performance Audit.
Statements N Mean Standard
Deviation(SD)
1. Performance audits build or increase public trust in 166 4.69 .503
your service delivery
2. performance audit has a controlling role 166 4.66 .610
3. performance audit analyzed the economic aspects of 166 4.42 .585
your service delivery
4. performance audit analyze the efficiency of your 166 4.33 .595
service delivery
5. performance audit analyze the effectiveness of your 166 4.40 .516
service delivery
6. performance audit determine whether your sector 166 4.16 .883
programs comply with applicable laws, rules,

regulations, or policies and procedures
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7. performance audit used as a whistle-blower function 166 3.92 .838
and draw your organizations a t t e n t i o n to specific
problems
8. Performance audit contributed to the well-being, 166 4.17 .504
motivation and performance of your individual employee.
9. The performance audit implementations in your 166 4.25 .964

organization were targeted or indicated the true problems.
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10. The performance audit implementation in your 166 4.13 .948
organization is appropriate, realistic and feasible.
11. The performance audit implementation were 166 4.39 .938
pointed out or show you the serious problems.
Average mean and standard deviation 4.320 0.71672
As shown in the above table 4.6 the survey analysis result of the average mean 4.320 shows that majority of the
respondents agree that public sector auditors considered for this study have positive perceptions to the performance
audit conducted on them. This could be as the result of awareness creation by ANRSOAG on overall audits to
employees found in some public sectors that have found in the region. This good perception to performance audit
implies cooperation of the public sectors to the performance audit work by the auditors. Perception of the
public sectors on the auditor’s performance audit can result in good role of performance audit on performance
improvements (Regassa, 2016).
From the side of the public-sector auditors the good perception as usefulness of performance audit leads to
operational improvements if the performance audit makes to learn from their mistakes and performance
improvements and also the public-sector auditors of performance auditing motivates in doing there works in a given
period of time if they have a good attitude for this auditing. Perception is a key for actions that have taken by the
public sectors (Morin,
2001).
According to Tadesse (2015) quoting the work of Best (1977), consensus agreement if the mean value fall under the
following ranges, it has the following meaning and interpretations that the researcher was used the same. If the
mean result is 1.00-1.80 lowest for strongly disagree, 1.81-
2.61 lower for disagree, 2.62-3.41 average or moderate for neutral, 3.42-4.21 is good/ high for agree, and finally
4.22-5 is considered very good for strongly agree.
Therefore, based on the above stated agreements, in this research respondents strongly agree to statements or
questions 1, 2, 3, 4 and 5 with the mean results of 4.69, 4.66, 4.42, 4.33 and 4.40 and SD of 0.503, 0.610, 0.585,
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0.595 and 0.516 respectively.

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This implies that most of the respondents have very good agreement that of the performance audits build or increase
public trust in their service delivery to the society, in compared to others that are stated in the above table. Analysis
result show that performance audit has the least role in analyzing the effectiveness of service delivery of the
audited entities when compared to efficiency and economic aspects of the public sectors.
Most of the respondents agree that performance audits used as a whistle-blower function and draw the organizations
attention to specific problems and also the performance audit implementation in the organization is appropriate,
realistic and feasible, which has the mean result of 3.92 and 4.13 and also SD of 0.838 and 0.948 respectively. In
which the SD shows that the individual respondents on average, where a little over one (1) point away from the
mean in which indicates that the respondent‘s perception were relatively close to one another.
4.4. Obstacles of the auditors in the implementation of performance audit process.
In this research, obstacles of the public-sector auditors in the implementation of performance audit are used to assess
the factors affect on performance audit implementation on performance improvements. The related data analysis
results and discussions have presented in the following tables 4.7 and paragraphs.
Table 4.7 Descriptive Statistics Obstacles of the auditors in the implementation of performance audit process.
Statements N Mean Standard
Deviation(SD)
1. Absence of Performance Audit Guidelines 166 3.58 .949
2.Performance Audit team itself lacks technical 166 4.01 .849
Knowledge
3. Inadequate management information /Unavailability 166 4.25 .899
of sources of data
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4. Lack of measurable final output /any limitations to 166 3.89 1.364
the data used, and audit findings

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5. Performance audit takes more time and financial 166 4.21 1.283
Resources
6. Lack of good rapport between auditors and auditees 166 3.72 1.292
7. Inadequate staff of performance audit in terms of 166 4.27 .917
numbers and quality
8. Absence of performance audit rules and regulations 166 4.10 .998
9. Lack of cooperation and commitment from auditees 166 4.29 1.123
in conducting the performance audit.
Average mean and standard deviation 3.9766 0.98650
Table 4.7 presents the responses of the public -sector auditors in respect to obstacles to carrying out/implement the
performance audit. The survey analysis result of the average mean 3.9766 shows that majority of the respondents
agree that public sector auditors considered for this study have to face many factors in conducting the
performance audit. Overall, the results reveal that the respondents perceived almost all constraints as ―highly
moderate constraint, with mean score values ranging from 3.42-4.21 as stated by Tadesse (2015) quoting the
work of Best (1977), consensus agreements. Based on the mean score values, as shown in Table 4.7, the top three
constraints/obstacles for the auditor in conducting the performance audit, in sequence of severity are: first,
Performance audit takes more time and financial resources; second, Lack of cooperation and commitment from
auditees in conducting the performance audit; and thirdly, Inadequate management information /Unavailability of
sources of data with the mean value of
4.21, 4.29,4.25 and SD of 1.283, 1.23 and 0.899 respectively. This finding was consistent with the study of (Chew
Har,Suhaiza, and Fatima, 2016).In which the SD shows that the individual respondents on average, indicates that
the respondent‘s perception about the obstacles of auditors in conducting performance audit were relatively close to
one another in this study.
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In addition to this, Performance Audit team itself lacks technical knowledge is another top constraints or limitations
of the public-sector auditors in conducting performance audit with the mean value of 4.01 and SD of 0.849.
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Most of the respondents strongly agree that the performance audit takes more time and financial resources, are one
of the top constrains for the auditor conducting the performance audit in this research. Therefore, the Amhara
National Regional State Office of Auditor General should give more time in correcting this constraint and budget
enough resources for the public sectors in conducting performance audit in order to achieve goals and objectives of
the entities economically, efficiently and effectively.
―Lack of cooperation and commitment from auditees is ranked as the top constraint in performance audit which
means that auditees failed to work closely with auditors and were not willing to cooperate with them. The
importance of commitment from auditees in carrying out a performance audit was emphasized by Morin (2001),
who stated that if auditors want to highly influence auditees in enhancing the entity‘s performance, then itis
essential to create a cooperative atmosphere between the two parties.
―Inadequate management information/Unavailability of sources of data is another top constraint in performance

audit implementation for the performance auditors. The result indicates that 57.6 percent of the respondents were of
the opinion that ―inadequate management information appeared to be a ―severe constraint in undertaking a
performance audit in this research case study area. This finding was consistent with the study of Chew Har, et, al.
(2016), it appeared to be the severe constraint in the Malaysian context. The advancement and development of
information technology have an impact on performance audit. Hence, the planning of adequate management
information in a performance audit is crucial. Interestingly, in the study of Pendlebury and Shreim (1990), it
appeared to be the least constraint in the UK context.
Absence of Performance Audit Guidelines, Lack of good rapport between auditors and auditees, and Lack of
measurable final output /any limitations to the data used, and audit findings with the mean value of 3.58, 3.72 and
3.89 and standard deviation of 0.949, 1.292 and 1.364 respectively are the three least constraints of the public-
sector auditors in performance auditing in compared to the top four constraints. Therefore, in this research
case study area the responsible party should give more emphasis for the occurrence of adequate and feasible
performance audit guidelines for the auditors and public sectors and also the parties which is involved during
the audit of the performance auditing should have a good relation for the achievements of public sectors goals and
objectives efficiently, economically and effectively. Based on the
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findings, the Amhara National Regional State Office of Auditor General should give a concentration in order to
create awareness about the importance of performance audit for the entities and the performance auditors to have a
good relation during the time audit working and also create a capacity building to the regional public sectors about
this type of auditing.
Another constraint in performance audit based on mean score ranking is ―lack of measurable output/any limitations
to the data used, and audit findings. Based on the findings, 50.8 percent of the respondents agreed that ―lack of
measurable output is a ―major constraint‖; merely 0.085 percent of the respondents believe that this is ―not a
constraint at all, which means that there seems to be insufficient review mechanisms to measure the performance of
the government‘s activities or programs. Similarly, lack of measurable output was one of the major constraints
identified in the study of Pendlebury and Shreim (1990). Lapsley and Pong (2000), stated that auditors were having
problems to form an opinion based on qualitative measures, as there would always be conflict among the audit team
members. This is consistent with Roberts and Pollitt (1994), who revealed that the audited report rarely identifies
detailed measures that allow for future improvement.
In addition to the above listed constraint‘s, there are respondents who explained in the open- ended question that the
Obstacles of Performance Audit includes; - Lack of professional mix among auditors; lack of independence of
auditors because of management intervention; lack of performance audit manuals or resources such as book, and
infrastructure facilities; carelessness of auditors because of lack of accountability; lack of suitable working
condition during the course of the audit work; lack of commitment to correct the audit findings, if there is on time;
absence of clear setting goals and objectives about performance auditing; absence of follow-up procedure by the
management during the course of the audit work; lack of self-esteem by the audit team; lack of fully understanding
of the importance of performance auditing by the auditors and auditees; lack of sufficient professional auditors and
cooperation of auditees (audited government entities); less legislature attention, and also documentation system and
so on.
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4.5. Factors of Performance Audit Effectiveness
Finally, the factors affect that could explain the performance audit effectiveness have been examined by estimating
ordinal logistics regression model and using Pearson correlation analysis. In this section, one dependent
variable against six independent variables was investigated. The dependent variable is the Performance Audit
Ineffectiveness, while the independent variables are Lack of Capacity building, Absence of Consultant recruitment,
Lack of Awareness level, Absence of Pre-set goals, Absence of Accountability and Lack of Top management
support. The subsequent sections would present the results of descriptive statistics, the Pearson correlation analysis
and regression model respectively.
4.5.1. Descriptive Statistics
The table 4.8 below shows the descriptive statistics of the dependent variable, Performance audit ineffectiveness and
six independent variables.
Table 4.8. Descriptive statistics
Variables N Min. Max. Mean Std.
Deviation
Lack of Capacity building 166 1.00 5.00 3.95 0.680
Absence of Consultant recruitment 166 1.00 5.00 4.28 0.861
Lack of Awareness level 166 2.00 5.00 4.13 0.948
Absence of Pre-set goals 166 2.00 5.00 4.15 0.965
Absence of Accountability 166 1.00 5.00 4.29 0.865
Lack of Top management support 166 1.00 5.00 4.10 1.123
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Performance Audit Ineffectiveness 166 1.00 5.00 4.04 0.866
As it is shown on table 4.8 above the value of the mean for the dependent variable of performance audit
ineffectiveness is 4.04 with a standard deviation of 0.866. This positive high mean value indicates that most of
respondents agree with the questions that are asked for them
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with that of the reasons of the performance audit ineffectiveness and the standard deviation of less than 1.00 on
the other hand shows that respondent ‘s perceptions with regard to the questions asked for them were close to each
other.
In addition, the mean and standard deviation for the independent variables (Lack of Capacity building, Absence of
Consultant recruitment, Lack of Awareness level, Absence of Pre-set goals, Absence of Accountability and Lack of
Top management support) with the items on five-point Likert scale questions shows a minimum mean of 3.95 with a
standard deviation of 0.866, and a maximum mean of 4.29 with a standard deviation of .965 respectively.
Therefore, according to the work of Best (1977), consensus agreement if the mean values, the mean score for all six
independent variables‘ is greater than 3.42, it could be argued that most of the respondents agree with the questions
asked for them that are related with the factors affecting of performance audit effectiveness and also the
standard deviation of less than 1.00 except one independent variable of lack of top management support with the SD
1.123, shows that respondents perceptions with regard to the questions asked for them were close to each other.
4.5.2. Pearson Correlation Analysis
In statistics, the Pearson correlation analysis is a measure of the correlation (linear dependence) between two
variables, giving a value between +1 and −1 inclusive. It is widely used in the sciences as a measure of the
strength of linear dependence between two variables. The p-value, in Pearson Correlation analysis, attempts to
provide a measure of the strength of results of a test, in contrast to a simple reject or do not reject decision.
In Pearson correlation analysis the value of strength of relationship (r) plays an important role in determining the
level of relationships among variables. The significance level, p<0.05 is also used to establish the
relationship. This significance level shows that there is only 5 percent chance that the relationship does not
exist, and 95 times out of 100 times the relationship among variables can be defined as having significant
correlation.
The table below shows the results of the Pearson correlation analysis among the variables, and interpretation of the
Pearson correlation results would be presented.
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Table 4.9. Pearson correlation matrix for dependent and independent variables
PAIE LCB ACR LAL APG WA LTMS
Performance Correlation 1.000
audit
Sig. (2-
ineffectiveness
tailed)
N 166
Lack-of Correlation .794** 1.000
Capacity
Sig. (2- .000
building
tailed)
N 166 166
Absence-of Correlation .013 .213 1.000
Consultant
Sig. (2- .923 .105
recruitment
tailed)
N 166 166 166
Lack-of Correlation .129 -.014 .073 1.000
Awareness
Sig. (2- .332 .919 .585
level
tailed)
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N 166 166 166 166
Absence-of Correlation -.052 .097 .063 .256 1.000
Pre-set goals
Sig. (2- .696 .465 .633 .051
tailed)
N 166 166 166 166 166
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Absence of Correlation .555** .521** .273* .225 .287* 1.000
Accountability
Sig. (2- .000 .000 .037 .087 .027
tailed)
N 166 166 166 166 166 166
Lack of Top- Correlation .099 .167 .286* -.009 .178 .103 1.000
management
Sig. (2- .456 .206 .028 .945 .177 .436
support
tailed)
N 166 166 166 166 166 166 166
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Source: SPSS correlation result, (2020).
As shown in the above table, of the total of six explanatory variables tested in this study, there is a significant
positive correlation between two of the independent variables (Lack of Capacity building, and Absence of
Accountability) and the dependent variable i.e. Performance audit ineffectiveness at the significant level of 0.01.
Also, the correlation between (Absence of Consultant recruitment, Lack of Awareness level and Lack of Top
management support) and Performance audit ineffectiveness has a positive correlation but not significant at 0.05
level.The correlation between Absence of Pre-set goals and Performance audit ineffectiveness has a negative
correlation and has very week value. This shows that according to this study Absence of pre-set goal is not
considered a factor for the performance audit ineffectiveness. Based on the results in table 4.9 there are positive
relationships between performance audit ineffectiveness and most of the independent variables. This indicates that
performance audit is ineffective because of the existing of such challenging variables that indicated in Pearson
correlation matrix table.
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4.5.3. Analysis of Econometrics Model Regression
This section deals with analysis of data and interpretation of analytical findings. Initially, it is better to see the
overall specification test of the model.
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To determine the factors affecting performance audit effectiveness, the ordered logistics regression analysis
performed by using the statistical package for social science (SPSS) version 16a. Before the results of this analysis,
first let us look at the assumptions of the ordered logistics regression (Reliability/Cronbach‘s Alpha Test,
Multicollinearity test, Heteroskedasticity test, Test of Autocorrelation, Test of omitted variable bias and test
of Checking outliers) to draw the accurate and reliable conclusion about reality.
4.5.3.1 Cronbach’s Alpha Test
The reliability was measured using Cronbach‘s alpha by the help of the statistical package for social sciences
(SPSS) Version 16. Struwig and Stead (2001), describe Cronbach‘s alpha as a measurement of how well a set of
items measure a single one-dimensional talent construct. Alpha was developed by Lee Cronbach in 1951 to
provide a measure of the internal consistency of a test or scale; it is expressed as a number between 0 and 1.
According to Cronbach‘s alpha rules, α=0.9 the internal consistence will be excellent and if 0.7= α <0.9 the internal
consistency will be good. And 0.6= α< 0.7 the internal consistency will be acceptable, the last one is 0.5= α<0.6
α<0.5 the internal consistency will be poor or unacceptable (Cronbach, 1951).
Thus, according to this scale table 4.10 indicate that Cronbach‘s alpha test has been taken for 166items and the
result was 0.8624. This coefficient of reliability means that the collected responses through questionnaire have a
confirmed reliability of the questions.
Table 4.10: Result of Reliability Analysis
Cronbach's Alpha based- Cronbach's Alpha Strength of Number of items used
on unstandardized based-on standardized association
0.8624 0.8693 Very Good 166
Source: SPSS regression results (2020)
The overall Cronbach alpha of this study was shown 0.8624 based on the results of the study, this result is
Very good because Cronbach‘s alpha coefficient for the overall assessment is greater than 0.70.
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4.5.3.2 Multicollinearity Test
Multicollinearity is an unacceptable high level of inter-correlation among the independent variables, such that the
effect of the independents cannot be separated. The researcher calculates the Variance Inflation Factor (VIF) and
Tolerance statistics to check for multicollinearity. Variance of inflation factor VIF may be used instead of tolerance
as VIF is simply the reciprocal of tolerance.
Table 4.11. Variance inflection factors as a measure of Multicollinearity
Model Collinearity Statistics
Tolerance VIF
Lack of Capacity Building .694 1.441
Absence of Consultant recruitment .851 1.174
Lack of Awareness level .886 1.128

Absence of Pre-set goals
Absence of Accountability .848 1.179
Lack of Top-management support
.617 1.621
.875 1.143
Source: SPSS regression results (2020)
The rule of thumb is that VIF is greater than 4 when multicollinearity is a problem. Some authors use the more
lenient cut-off of VIF ≥ 5 when multicollinearity is a problem. As we can see from Table 4.11, the VIF values
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computed for each independent variable are quite small, which indicates that there is no problem of
multicollinearity because the VIF scores are less than 4 for all independent variables (G. David Garson, 2012).
Tolerance is defined as 1-R-squared, where R-squared is the multiple R of a given independent regressed on all
other independent variables. If the tolerance value is less than some cut-off value, usually 0.20, the
independent variables have problem of multicollinearity. This is better than just using simple r greater than 0.60
since tolerance looks at the independent variable in
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relation to all other independents and thus takes interaction effects in to account as well as simple correlation (G.
David Garson, 2012).
4.5.3.3. Test of Heteroskedasticity
Heteroskedasticity is a systematic pattern in the errors where the variances of the errors are not constant.
Heteroskedasticity can also arise as a result of the presence of outliers (Gujarati, 2003). Outliers are extreme values
as compared to the rest of the data and are defined by the size of the residual in a logit regression where all of the
observations are used. Outlier detection involves the determination whether the residual value (error = predicted–
actual) is an extreme negative or positive value. In this study, the non-graphical methods of Cook-Weisberg
Test/Breusch-Pagan of testing heteroskedasticity are used and the results obtained are presented below.
Table 4.12. Test of Heteroskedasticity
. estat hottest
Breusch-Pagan / Cook-Weisberg test for Heteroskedasticity
Ho: Constant variance
Variables: fitted values of PAIE
chi² (1) = 0.16
Prob > chi² = 0.6904
Source: Stata regression result, (2020)
For the regression output of the model Breusch-Pagan/Cook-Weisberg test for Heteroskedasticity was conducted on
Stata 11 to test for homogeneity of variance and a P-value of greater than
0.05were acceptable. As the result revealed in table 4.12 above p-value (= 0.6904) for the model is greater than
0.05 the critical value, shows homogeneity of variance across the model.
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4.5.3.4. Test of Autocorrelation
This assumption can be tested with the Durbin-Watson test which test for serial correlation between errors
and the value closer to 2 are acceptable (Field, 2009). According to this study
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which is calculated by using SPSS version 21, the Durbin-Watson statistics value are 1.967very close to 2 suggests
that there is no severe autocorrelation among error terms.
4.5.3.5. Test of omitted variable bias
Testing for omitted variable bias is important for our model since it is related to the assumption that the error term
and independent variables in the model are not correlated (E (e|X) = 0). According to Ramsey RESET test F (3, 49)
=2.76, Prob > F =0.0522), the p- value is higher than the usual threshold 0.05, so the researcher concludes that the
studydoesn.t need more variables. (Ho: model has no omitted variables).
4.5.3.6 Test of checking outliers
Outliers are data values that differ greatly from the majority of a set of data. These values fall outside of an overall
trend that is present in the data. The common sources of outliers are measurement error, human error (errors in
data entry and collection), participants intentional reporting of incorrect data, and sampling error. Outliers are data
points with extreme values that
could have a negative effect on our estimators. Fig. 4.1 Checking for outliers.
1
1
|X)
|X)
.5
.5
1.5.5
0
anpa
e( anpa
0
e( me
me
-.5
e
e
-.5
-.5
-1
-1.5
-1
-1
-1.5 -1 -.5 0 -3 -2 -1 0 -3 -2 -1 0
.5 1 e( 1 e( mean cr | X 1 2 e( meanal | X )
-1
-1
meancb | X ) ) coef = .12759849, se =

coef = .78391811, se = coef = -.24443656, se = .06031257, t = 2.12
.09038501, t = 8.67 .08025106, t = -3.05
1
1
1
)
.5
.5
.5
e( meanpae |
X
0
0
0
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e( me pae |
an X
-.5
-.5
-3 -2 -1 -3 -2 -1 0 -3 -2 -1 0
0 1 e( mean pg | 1 e( mean sa | 1 2 e( meant
X) X) ms | X )
coef = -.21498752, se = coef = .21101131, se = coef = .04249215, se = Source: Stata
e( meanpae | X )
.06834098, t = -3.15 .0683258, t = 3.09 .0524232, t = .81
16 regression result, (2020)

e( meanpae | X )
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To check for outliers the researcher uses the added variable plots command after running the regression. The plots
regress each variable against all others, notice the coefficients on each. All data points seem to be in range; thus, no
outliers observed with the exceptions of the two plots.
4.5.4. Order Logit Regression model and Analysis
In this section, in examining the challenging factors that could affect the performance audit effectiveness, the
researcher used a regression analysis to test the effect of six independent (explanatory) variables on the dependent
(explained) variable i.e. Performance audit ineffectiveness. Thus, in this study the researcher used Order Logit
regression analysis, in which tests have been made to examine whether one or more independent variables influence
the variation on dependent variable.
Therefore, under this section the study would gave a great emphasis on the order logit regression models with
statistically significant variables and interpreting them by taking their simple logit coefficient initially and its
marginal effects of the outcomes categorical variables finally.
Table 4.13. Order Logistics Regression coefficients for independent variables identified to effect on performance
audit ineffectiveness
Variables Coef. Std. Z P>|z 95% Conf. interval
Err.
Lack of Capacity building 4.035 0.659 6.13 0.000 2.744 5.326
Absence of Consultant recruitment -1.210 0.399 -3.03 0.002 -1.991 -0.428
Lack of Awareness level 0.674 0.279 2.41 0.016 0.127 1.222
Absence of Pre-set goals -0.886 0.320 -2.77 0.006 -1.513 -0.258
Absence of Accountability 0.832 0.317 2.62 0.009 0.210 1.454
Lack of Top-management support 0.258 0.241 1.07 0.284 -0.215 0.731
Source: Stata 16 regression result, (2020)

The regression analysis shows that which of the variables included in the regression model contributed to the
prediction of the dependent variable. If we were interested in constructing a regression equation, we would use the
regression coefficient values.
The sign of the Logit Regression Coefficients measured the contribution of each variable to the model.
Positives/negative beta value would indicate a variation in independent variables resulted in significant changes in
dependent variable. The regression model as a whole is statistically significant and all the variables are important in
the model. Some factors (independent variables) are found to have significant correlation with the dependent
variable i.e. Performance audit ineffectiveness. Particularly, the ordered logistic regression results show the
existence of statistically significant relationship between the dependent variable i.e. performance audit
ineffectiveness and Lack of Capacity building, Absence of Consultant recruitment, Lack of Awareness level,
Absence of Pre-set goals, and Absence of Accountability.
As shown in the above table 4.13, of the total six explanatory variables tested in this study. With regard to Lack of
Capacity building, the result of ordered logistic regression shows positive and significant relationship with the
dependent variable i.e. performance audit ineffectiveness with (p-value= 0.000) at significant level which is less
than of 0.05 with the r e g r e s s i o n coefficient value of 4.035 (i.e. as the Lack of Capacity building increases,
performance audit ineffectiveness will also increase and vice versa). Absence of Consultant recruitment (p-value=
0.002) with the beta value of, -1.210, Lack of Awareness level (p-value= 0.016) with the beta value of 0.674,
Absence of Pre-set goals (p-value= 0.006) with the beta value of -0.886, and Absence of Accountability (p-value=
0.009) with the beta value of 0.832 were statistically significant at 5 percent or lower. But from five significant
explanatory variables, Absence of Consultant recruitment and Absence of Pre-set goals becomes significant
negative relationship with that of the dependent variable i.e. performance audit ineffectiveness. In this study, there is
insignificant positive relationship between Lack of Top-management support and performance audit ineffectiveness
with the ordered logistic regression coefficient beta value of 0.258, and P-value of 0. 284. The result also reveals
that there is a positive relationship between with the exceptions of the above two stated independent variables and
the performance audit ineffectiveness. (i.e. When the explanatory variables increase, performance audit
ineffectiveness will also increase and vice versa). The functional relationship between variables in this
study is therefore,
performance audit ineffectiveness is a function of Lack of Capacity building, Absence of Consultant recruitment,
Lack of Awareness level, Absence of Pre-set goals, Absence of Accountability and Lack of Top-management
support. However, to show how well the model containing those of six explanatory variables actually explains the
variations in the dependent variable, i.e. performance audit ineffectiveness.
4.5.5. Ordered logistic regression with marginal effects
To assess the quantitative effects of the independent variables, marginal effects are calculated. The table below
presents the marginal effect of ordered logistic regression for the five categories (strongly agree, agree, neutral,
disagree and strongly disagree).
Table 4.14. Marginal effects after logit regression
Variables P(PAIE)=2) P(PAIE)=3) P(PAIE)=4) P(PAIE)=5)
dy/dx p>|z| dy/dx p>|z| dy/dx p>|z| dy/dx p>|z|
LCB -.000892 0.498 -.0400161 0.226 -.1642 0.304 .0274 0.145
ACR .0002674 0.502 .0119967 0.248 .0492 0.312 -.0082 0.167
LAL -.0001491 0.500 -.0066894 0.260 -.0274 0.340 .00457 0.204
APG .0001958 0.509 .0087845 0.245 .0361 0.324 -.0060 0.207
AA -.000184 0.513 -.0082544 0.242 -.03386 0.314 .00564 0.208
LTMS -.0000571 0.559 -.002563 0.413 -.01051 0.455 .001752 0.367
Source: Stata 16 regression result, (2020)
Once the marginal effects are estimated, the next thing to do is interpreting them. Interpretation of statistically
significant dependent variables will be made in the following sections.
In terms of marginal effects, a one-point increase in lack of capacity building is associated with being 0.089% less
likely to disagree with the statements related to performance audit ineffectiveness,4.00% less likely to neutral with
the statements related to performance audit ineffectiveness,16.42% less likely agree to the statements
related to performance audit
ineffectiveness and 27.40% more likely to be strongly agree with the statements related to performance audit
ineffectiveness.
In regarding to absence of consultant recruitment, an increase in absence of consultant recruitment by one-

point is associated with a0.026% more likely to disagree,1.19% more likely to be neutral and 4.92%more likely to
be agree with the statements related to performance audit ineffectiveness. On the other hand, it is less likely to the
probability of being strongly agree by
0.82%with the statements related to performance audit ineffectiveness.
In regarding to lack of awareness level, an increase in lack of awareness level by one-point is associated with a
0.014% less likely to disagree, 0.66% less likely to be neutral and 2.74% less likely to be agree with the statements
related to performance audit ineffectiveness. Also 0.45% more likely to be strongly agrees with the statement of
dependant variable.
In relation to absence of pre-set goals, a one-point increase in absence of pre-set goals, a 0.019% more likely to
disagree, 0.87% more likely to be neutral and 3.61% more likely to be agree with the statements related to
performance audit ineffectiveness. On the other hand, it is less likely to the probability of being strongly agreed by
0.60% with the statements related to performance audit ineffectiveness.
In relation to absence of accountability, an increase in absence of accountability by one-unit is associated with a

0.018% less likely to disagree, 0.82% less likely to be neutral and 3.38% less likely to be agree with the statements
related to performance audit ineffectiveness. Also 0.56% more likely to be strongly agrees with the statement of
dependant variable.
In regarding to lack of top-management support, an increase in lack of top-management support by one-unit is

associated with a 0.005% less likely to disagree, 0.25% less likely to be neutral and 1.05% less likely to be
agree with the statements related to performance audit ineffectiveness. On the other hand, it is more likely to the
probability of being strongly agreed by
0.17% with the statements related to performance audit ineffectiveness.
4.6. Discussion of Findings
The last section of the study aims to find out the challenging factors that affect the performance auditing reasons
that to be ineffective in the public sectors especially in the selected case
study area of Amhara National Regional State Public sectors. As the objective of this research topic is factors affect
on performance audit topic in the implementation process, for the convenience of the research, only six variables
that affect implementation are discussed. Those are lack of capacity building, absence of consultant recruitment,
absence of pre-set goals, lack of awareness level, absence of accountability and lack of top-management support.
This particular section presents the results of the study indicated by statistics, using correlation and ordered
logit regression analysis. The correlation and regression between independent variables and performance audit
ineffectiveness were compared and discussed in detail.
(A) Lack of Capacity Building
In this study both the Pearson correlation and Logit regression results indicate that there is significant positive
relationship between Lack of Capacity Building and Performance audit ineffectiveness. The results of the Pearson
correlation indicate that the value for the correlation coefficient (r) is 0.794 and significant at 0.01. The correlation
between Lack of Capacity Building and Performance audit in ANRS public sectors has a very good value. On the
other hand, the results of the regression analysis shows that there is a strong relationship between Lack of Capacity
Building and Performance audit ineffectiveness, with a regression coefficient of 4.035, and P-value of 0. 000.
Therefore, the findings reveal that this value is significant to further the relationship with Performance audit
ineffectiveness. According to this study, this means that capacity building is one ―major constraint‖ for the
performance audit ineffectiveness in the case study area. Therefore, it becomes because of staff members who
conduct performance audits lacks, knowledge of the methods applicable to performance auditing and the education,
skills, and experience needed to apply such knowledge; understanding/Knowledge of government
organizations, programs, and functions; Skills to communicate clearly and effectively of the audit findings, and
special skills depending on the nature of the specific audit (e.g. statistics, information technology (IT), engineering
etc,) or expert knowledge of the subject matter concerned. Because according to different authors/researcher‘s
performance audit needed different skills or other professions in undertaking a performance audit. A simple reason
is that auditors are unable to become experts in all areas, particularly in technical aspects. The result is consistent
with the findings of (Nusrat, 2012;Pendlebury and Shreim 1990;Chew Har Lokeet al.,
2016).
According to Nusrat (2012), if you want to conduct a performance audit, you must have good knowledge of the
financial side. New auditors will be sent to the financial side to pick up all financial work and then they will be
transferred to the performance audit. Normally those should have an experience in auditing for 5-6 years. ―We do
not allow new auditors to do performance audit as they lack experience. Once they have acquired enough
experience and exposure, then we let them do the performance audit.
(B) Absence of Consultant Recruitment
In this study, both the correlation and the regression result shows there is a significant positive relationship between
Absence of Consultant Recruitment and performance audit ineffectiveness. As it is presented on table 4.9, the
Pearson correlation result shows a positive correlation between Absence of Consultant Recruitment and
performance audit ineffectiveness with correlation coefficient of r = 0.013. The ordered logit regression result also
shows a significant relationship between the two variables with the negative a regression coefficient of -1.210,
and P-value of 0.002. Thus, from the result it can be conclude that even if the result of the coefficient is negative,
Absence of Consultant Recruitment negatively influences performance audit effectiveness.
Therefore, the findings reveal that consultant recruitment for performance auditing is the
severe constraint ‘ f o r the performance audit ineffectiveness in the case study area. It becomes because of staff
members who conduct performance audits in the public sector lacks a Consultation services from authoritative
sources and specialists with appropriate competence, judgment and authority, to ensure due care when dealing with
complex, unusual or unfamiliar issues. The public-sector performance auditors also lack, an audit practitioner
who seek an advice, guidance, techniques and resource references to enhance the quality of their audits and also to
achieve the audit objectives economically, efficiently and effectively at a given period of time. This result is
consistent with the study of (Nusrat, 2012; Chew Har Loke et al., 2016).
Performance audit is an information-based activity and covers wide areas such as management, legal framework
and operational issues (INTOSAI, 2004). According to Nusrat (2012), it also covers various programs in the field of
health, engineering, information technology etc. As it is impossible to recruit and to expect auditors with all the
knowledge and skills, audit teams from various backgrounds would be ideal solution for reaching optimal decision.
Most of the respondents agree that they do not have sufficient manpower and they cannot recruit consultant if
needed due to administrative constraints and also budgetary limitations, recruitment of such people is not possible
and in such cases the reports, the audit team produces fails to reach the expected standards. Because performance
audit is specialized type of audit which have three components of economy, efficiency and effectiveness, there for
the Office of Auditor General should give more emphasis for this type of audit by recruiting consultants to give
an advice for the performance auditor to find out the causes that hampers the performance of a project or an
institution.
(C) Lack of Awareness Level
As it is presented on table 4.9, there is a positive correlation between performance audit ineffectiveness and Lack of
Awareness Level with a correlation coefficient of 0.129. Similarly, the logit regression result shows a significant
positive relationship between Lack of Awareness Level and performance audit ineffectiveness, with a logit
regression coefficient of 0.674, and P- value of 0.016. This indicates that Lack of Awareness negatively
influences the performance audit effectiveness. The finding of this study is supported by (Nusrat, 2012; Pendlebury
and Shreim 1990; Chew Har Loke et al., 2016).
Therefore, the findings reveal that Awareness level of audit parties about performance auditing is the another
‗severe constraint‘ for the performance audit ineffectiveness in the case study area. It exists because of the audit
team of performance audit in the public-sector lacks, awareness about the utility, scope, method and nature of
performance audit; Lack of awareness of guidelines/standards about performance audit; Lack of spare time to attend
different seminars, workshops or training sessions to auditors and concerned personnel, lack of available
Accounting records in the audited organizations creates reluctance among the staff to cooperate with the audit team
and Lack of sufficient reliable data is a common phenomenon in the public sector organizations are some constraints
for the effectiveness of performance auditing in case study areas.
According to Nusrat (2012), In the traditional audit or financial audit, when the audit party goes to an institution
for auditing, the auditee institution supplies necessary documents, like papers for allocated budget, bills for
expenditure and receipt (if any). Now it is the work of the audit party to find out observations, misappropriations
and deviations from rules and regulations. But in
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Performance Audit the audit party as well as the auditee organization should work together. To measure how
efficiently, effectively and economically the money is being spent needs more involvement of the audit party in the
institution or project.
In addition to the above constraints, most of the public sectors do not have updated database. Therefore, without it, it
is very difficult for the audit party to measure the performance. This means there was no necessary database system
for monitoring how far the public sectors have achieved its technical goals and No tangible progress is seen by the
management related rules and guide line enactment. In regarding to this the researcher recommended that the
Amhara National Regional State audited public sector auditors and auditees were aware of the performance audit
objectives and goals, there would have developed a database to record their activities. Because database would
have helped them to reach their goals as day by day they could see their progress.
In addition, there are respondents who explained in the open-ended question that the Performance Audit is exist at
infant stage or new thing to both auditor and audited organization in a given case study area of ANRS public
sectors. So, because of this reason the audited organization could not understand the concept and importance of
performance auditing.
(D) Absence of Pre-Set Goals
As it is presented on table 4.9, there is a negative correlation between Absence of Pre-Set Goals and performance
audit ineffectiveness with a correlation coefficient of -0.052. This means that correlation between the two variables
has a very weak value or they have going on an opposite way. Similarly, the logit regression result shows a
significant with a negative coefficient of -
0.886 with p- value of 0.006 between Absence of Pre-Set Goals and performance audit ineffectiveness. This
indicates that even though it becomes significant, they have not a positive correlation coefficient between Absence
of Pre-Set Goals and performance audit ineffectiveness. That means Absence of pre-set goals are not considered a
major constraint for the performance audit ineffectiveness in a given case study area of Amhara National Regional
State selected public sectors. This study is not consistent with the empirical studies of (Nusrat ,2012; Chew Har
Loke et al., 2016).
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According to Chew Har Loke et al., (2016), Auditees do not take the necessary actions upon the recommendations
suggested by the public-sector auditors was perceived by respondents as the top constraint in carrying out a
performance audit and also the audit recommendations are not accepted by the auditees because of influence from
high-level management.
Nusrat (2012), argued that the employees of auditee organization that they are not aware of those pre-set goals. He
also said that the goals are broad and not always clearly defined and sometimes difficult to achieve. According to
him another challenge of performance Audit in the context of Bangladesh is the absence of KPIs (Key Performance
Indicators). The fundamental precondition for meaningful comment on the performance of an audited
organization is having clear and easily quantifiable benchmarks or performance indicators. In cases where
objectives are not quantifiable or performance indicators are not available, the task of the auditors becomes
difficult.
(E) Absence of Accountability
In this study, both the correlation and the regression result shows there is a significant positive relationship between
Absence of Accountability and performance audit ineffectiveness. As it is presented on table 4.9, the Pearson
correlation result shows a significant correlation between Weakness for Accountability and performance audit
ineffectiveness with correlation coefficient of 0.555 and significant at 0.01. The logit regression result also shows a
significant relationship between these two variables, with a regression coefficient of 0.832, and P-value of 0.009.
Thus, from the result it can be concluding that Absence of accountability influences the performance audit
effectiveness in a given case study area of selected public sectors. This result is supported by with the empirical
studies of (Chew Har Loke et al., 2016; Salleh and Khalid, 2011; and Lapsley Pong, 2000). According to them, the
agencies are not accountable for being audited fear that public sector auditors will question their policies. They also
said that performance audit would definitely increase accountability and achieve the 3Es.
The result is consistent with the study of Salleh and Khalid (2011) and Lapsley Pong (2000) that performance audit
is an effective approach to enhancing accountability and it is needed to maintain public accountability.
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Therefore, the findings reveal that Absence of accountability of audit parties for their audit work about
performance auditing is another severe constraint ‘ f o r the performance audit ineffectiveness in the case study
area. It exists because of the performance audit directorate lacks an organized way of follow -up procedures for
each auditor and also lack of accountability of board members. Even though the performance audit becomes
effective each responsible party should accountable for final work of the audit.
(F) Lack of Top Management Support
In this study both the Pearson correlation and regression results indicate that there is insignificant relationship
between Lack of Top Management Support and performance audit ineffectiveness. The results of the Pearson
correlation indicate that the value for the correlation coefficient (r) is
0.099 and insignificant at 0.05. On the other hand, the results of the logit regression analysis show there is a
weak relationship between Lack of Top Management Support and performance audit ineffectiveness, with a
regression coefficient of 0.258, and P-value of 0. 284. This indicates that this value is insignificant to further the
relationship with performance audit ineffectiveness. This finding is inconsistent with the empirical studies of
(Nusrat, 2012; Chew Har Loke et al.,
2016).
According to Chew Har Loke et al., (2016), inadequate management information is ranked as the top constraint in
undertaking a performance audit.
The cooperation from management for access to information, which is important for the successful audit, the
auditors should have the opinion that they have reasonable access to information; the common problem faced
is that the information needed was commonly not available due to lost files (Nusrat, 2012).
Therefore, according to this research lack of top management support is not a major constraint for the
performance audit ineffectiveness in this research case study area ANRS selected public sectors.
In addition, there are respondents who explained in the open-ended question about what measures, you think, should
be taken to improve performance audit in the implementation phases? Therefore, the respondent gives some
comments which includes: - giving frequent training for the performance auditors and the employees of audited
entities; the auditors should follow the
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auditing standards during the course of the audit; Invitation of external auditors or foreign specialist or getting
consultation service; better professional mix and better career among the audit team; good cooperation and
commitment from auditees in the time of performance auditing work; sufficient and competent audit staff members;
performing the audit work through the rules and regulation of supreme audit institution; the auditor should be
independent during the course of the audit and free from management intervention; carefully understanding the
performance audit guidelines and taking corrective actions; using technology or updated database system; audited
public sector should take the necessary actions up on their recommendation suggested by the public-sector auditors;
the presence of follow-up procedure by the Office of Auditor General or Supreme Audit Institution ; enough
budgeting for the performance audit work; Should present accountability and transparency for the audit findings;
participation of external experts other than accounting departments and so on are the comments which are given
by the respondents to enhance the quality of performance audits.
4.7. Documentary Review and Analysis
The last section of this chapter presents reviews of different documents, manuals and audit reports related to
the performance audit implementation in case study area of selected public sectors. In this regard the researcher
wants to present summarized information after reviewing different materials that are related to the research topic.
The office of the Auditor General of Amhara National Regional State is established under the article 116/2 of the
constitution of the region. It draws its functions from the constitution. The role of the OAG is to enhance
financial accountability and transparency in the utilization of public resources which are approved by the
regional council for the benefit of the Amhara people.The Performance audit was started from nothing lately in
1987 and gradually, it grows up to 5 entities in average per annum since 2010/11.In this respect, the OAG conducts
performance audit on regional government sectors to examine whether sectors providing economical,
efficient, and effective service delivery for the satisfaction of customers and stakeholders.
The audit work conducted in accordance with the principles of International Organization of Supreme Audit
Institutions (INTOSAI) and the African Organization of Supreme Audit Institutions (AFROSAI) & regional
constitution audit standards and principles. Therefore, these standards ensure the office‘s operational excellence
that gives valuable evidence for decision
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makers. Based on the given mandate the Office discharges its duties & responsibilities and according to the last 16
years performance Audit coverage has been growth from time to time and it shift from 2% to 30% from total
number of entities.
To perform its function the office has given the following powers & duties on proclamation at article 7.
 Audit or cause same the accounts of the Regional Government Offices and
Organizations;
 Carry out or cause to be carried out performance audit, as may be necessary, to ensure that the result
brought by the Regional Government offices and organizations complies with law, is executed
economically and attains the desired objectives;
 carried out the examinations of resources Control Audit to ensure whether the whole system of
control of the Regional Government Offices and Organizations is adequately devised and implemented
properly and effectively;
Undertake special audit assignment based on the seriousness of the matter when requested by the
Council, Regional Courts, other government offices or organizations, as well as by the public at large
owing to operational mistakes or irregularities to have been identified in the irregular auditing period;
 Inform audit findings performed, in accordance with the Provisions stipulated hereof, to chief head of
the pertinent office or organization, and report to the concerned body where the audit findings reveal
the commission of a crime;
 Issue directives of audit standards and operational procedures in consultation with the concerned
office and organization as well as Federal and other Regional audit offices;
 provide the required training and certificate of competence there to for internal auditors in cooperation
with the concerned offices and organization; be able to cause internal audit report to be submitted to
it, as may be necessary;
 Make efforts, in co-operation with the pertinent Federal and Regional Government Offices, that the
accounting and auditing Profession be promoted geared in the right direction; and so on.
Even if the Office has such powers & duties, there were difficulties/challenging conditions to implement the
Performance audit carefully. Among these:
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 Qualified and skilled staff turnover is leading to undesirable hire and training costly to the office.
 Quality of audit service does not grow as to be expected.
limitation of information technology usage.
 Due to lack of finance there is persistent problem to get experience from abroad and there is no
strong OAG as well as strong and organized private auditors and accountant‘s associations.
the audit coverage is not large enough as the demand of stakeholders or as compared with regional
audited entities and budget coverage.
there is also the work load of audit managers and auditors in administrating audit quality.
 OAG has no protocol of work communication with stakeholders.
 the complexity of fraud & corruption on government resource is increasing.
 Staffs do not get adequate training to improve their knowledge & skills.
The difficulty of measuring our service that is given to customers in terms of their satisfaction.
 Most customers and people do not have adequate awareness in the importance of auditing
and lacks of coordination with concerned stakeholders are among the major challenges.
In addition to the above constraints‘ of performance audit implementation, the researcher wants to sort out some
other sever constraints‘ by reviewing the audit reports of selected audited public-sector entities, that the reasons
of performance audit do not achieved economically, efficiently and effectively. Among these; -
 There is a limitation in making discussion with stakeholders about cross cutting issues &
in creating awareness to customers.
 there is a possibility measurement between the approved budget and the benefits that we get, but there is
no comparison if the government outsources the audit works for private audit firm.
 less recognition and performance on cross cutting works. Specially, audit findings may not take enough
corrective measurement by stakeholders.
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 Still audit quality problem exist, because of sectors‘ finance activities do not cover in audit end to
end according to the nature of work flow and inefficient auditors‘ professional judgments.
 Communication with Ethics & Anti-corruption commission is not bind by law.
 Lack of independence of organization‘s structure for mission realization.
 there is no motivation system for the best performers.
 Lack of adequate support for private auditors and accountants by the management.
not yet adequate supportive software for work and Lack of sufficient & enough internet service.
 Trainings are not based on need assessments & the outcomes not yet measured and so on. Those are
summarized obstacles which are exists under the case study area of this research.
Therefore, based on the documentary review analysis the researcher recommended that the possible
measurement corrective actions should be taken by responsible parties i.e. the Office of Auditor General or the
Regional Supreme Audit Institution or by the Performance audit department in each public-sector entity to
improve and conducting good performance auditing. In addition to this the researcher believed that the Office
of Auditor General and the Management of the public-sector entities should take a remedial action on time and
improve performance audit through: -
Increasing audit coverage.
 Improving quality of audit service.
 Maintain protocol how OAG communicates with stakeholders.
 setting standard measurement for customer satisfaction.
 Develop and implement succession schemes to staff retention.
 Develop auditors in forensic audit skills.
 publicizing the work of the Office by using different media.
 seeing the alternatives of information communication technologies (ICT) in developing

resources & usage.
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 ensuring the Auditees that achieve their established objectives & perform the work. by using
resources economically, efficiently and reducing the negative influence of the surrounding.
Giving audit service timely for regional audited entities and achieving the stretched objectives.
 conducting the audit service independently and present reliable audit information to
stakeholders.
 Taking Corrective actions based on audit findings & recommendations.
 Constructive recommendations to strengthen internal control systems and getting professional
advice in accounting & auditing.
 preventing public asset and while embezzlement & corruption is occurred to exercise financial
accountability.
 Develop a mechanism on consultancy services for monitoring and evaluating.
Creation of favorable environment for short & long-term training opportunity.
 Follow-up and attention for issues which needs government decision and so on are some
possible measurements should be taken by the responsible parties in order to enhance the performance
audit implementation economically, efficiently and effectively.
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CHAPTER FIVE
5. CONCLUSION AND RECOMMENDATION
The aim of this chapter is to give a general summary about the whole study and make broad conclusions drawn from
the findings of the results. Finally, based on the findings the researcher put some recommendations under this
chapter and also, the last part presents possible future research areas.
5.1. Conclusions
This study examined the factors affect on performance audit implementation in case of Amhara National Regional
State selected public sectors. Three research objectives were developed and tested in this study. The first objective
is to assess perception of public sectors auditors on the performance audit. The second objective is to find out
the factors of the auditors in the implementation of performance audit process. The last objective is to examine the
causal relationship between performance audit related factors (Capacity building, Consultant recruitment,
Awareness level, Pre-set goals, Accountability and Top management support) with that of performance audit
ineffectiveness.
The study used self-administered questionnaire, which were distributed to employees involved in the performance
audit process especially from management groups/units, finance and administration units, internal audit units,
purchase departments, and departments on which performance audit are specifically conducted and the researcher
used secondary data from internal manuals and documents of the organization. The questionnaire was analyzed
using descriptive statistics, and inferential statistics such as correlations, and ordered logit regression and data from
document reviews were interpreted qualitatively.
Performance audit or Value-for-money (VFM) audit has been introduced in developed countries and many
developing countries over the last 30 years. Accordingly, In Ethiopia, performance audit was started in 1992.
According to Amhara National Regional State Office of Auditor General(ANRSOAG), On the other hand,
Performance audit started from nothing lately in 1987 and gradually, it grows up to Five entities in average per
annum since 2010/11. This is why the researcher motivated in doing his research on title of factors of
performance audit
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Implementation or to address the constraints/obstacles of the performance audit effectiveness in a given case study
area.
Performance audit measures the performance of a project or institution and sees weather it has reached its target
and while doing this it also measures how efficiently, economically and effectively it has reached the goal. Till
now this is said several times because theoretically this is the only definition we have. But practically, especially in
developing countries, what is produced in the name of performance audit does not always go with this definition.
The Perception of the auditors and selected public sectors on the performance audit is good. This is the bases for
performance audit works to get cooperation from the public sectors. Performance audit have analyzed good on how
the public sectors acquire resources in economic ways, which may include bulk purchases through bids. It
analyzed the uses of resources in service delivery of the public sectors that wastages should have avoided as
possible during public sector processes. In these public sectors, the performance audit work less on the
effectiveness as compared to the economic and efficiency aspects in their service delivery.
The results of this study show that most of the respondents have very good agreement that of the performance audits
build or increase public trust in their service delivery to the society. Also, most of the respondents agree that
performance audits used as a whistle-blower function and draws the organizations attention to specific problems
and also the performance audit implementation in the organization is appropriate, realistic and feasible.
According to the result of the study the top constraints/obstacles for the auditor in conducting the performance audit,
in sequence of severity are: first, Performance audit takes more time and financial resources; second, lack of
cooperation and commitment from auditees in conducting the performance audit; and thirdly, Inadequate
management information /Unavailability of sources of data. In addition to this, Performance Audit team itself lacks
technical knowledge is another top constraints or factors of the public-sector auditors in conducting performance
audit.
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The finding of this study also reveals that Lack of cooperation and commitment from auditees is ranked as the top
constraint in performance audit which means that auditees failed to work closely with auditors and were not
willing to cooperate with them.
Performance Audit existing at infant stage or new thing to both auditor and audited organization in a given case
study area of ANRS public sectors. So, because of this reason the public sector organization could not understand
the concept and importance of performance auditing. The audit department lacks competent manpower. This is
because of budget and administrative constraints the department cannot recruit employees as it needs. This
becomes because of problems that we do not have the right person in the right place ‘.
According to this study, capacity building is one ―major constraint for the performance audit ineffectiveness in the
case study area. Therefore, it becomes because of staff members who conduct performance audits lacks, knowledge
of the methods applicable to performance auditing and the education, skills, and experience needed to apply such
knowledge; understanding/ Knowledge of government organizations, programs, and functions; Skills to
communicate clearly and effectively of the audit findings, and special skills depending on the nature of the specific
audit (e.g. statistics, information technology (IT), engineering etc,) or expert knowledge of the subject matter
concerned.
The second variable was consultant recruitment. The importance of recruiting consultants or Subject Matter
Specialists is felt by everyone in this sector. Because of its very nature these types of people are needed in
performance audit for good reporting. The findings reveal that consultant recruitment for performance auditing is
the another severe constraint ‘for the performance audit ineffectiveness in the case study area. It becomes because
of staff members who conduct performance audits in the public sector lacks a consultation services from
authoritative sources and specialists with appropriate competence.
Another variable is awareness, Awareness level of audit parties about performance auditing is another severe
constraint ‘ f o r the performance audit ineffectiveness in this case study area. It exists because of the audit team
of performance audit in the public-sector lacks, awareness about the utility, scope, method and nature of
performance audit; lack of awareness of guidelines/standards about performance audit; lack of spare time to attend
different seminars, workshops or training sessions to auditors and concerned personnel.
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Finally, Absence of Accountability is another hindrance of performance audit. Absence of accountability of audit
parties for their audit work about performance auditing is another severe constraint ‘for the performance audit
ineffectiveness in this case study area. It exists because of the performance audit directorate lacks an organized way
of follow -up procedures for each auditor and also lack of accountability of board members.
Now these two indicators, namely awareness and pre-set goals are interdependent. Absence of pre-set goals is
resulted from lack of awareness in the audited public-sector organization. If they were aware of achieving their
objective they would have selected pre-set goals for measuring that achievement. Then the task of the audit team
would be easier. These two indicators again are related to capacity building. Capacity building does not only refer to
the capacity of the audit personnel; the employees of the auditee organizations also need to get proper training. If
they are properly trained about the financial rules and regulations, government accounting system and how to
maintain proper database, then half of the good performance audit is being done. Training also will help creating
favorable environment for good performance audit.
5.2. Recommendation
In light of the above mentioned conclusion of the study, the researcher wishes to make the following recommendations:
a). training is part of their continuous learning. The selected auditors are required to attend training before
being allowed to conduct the performance audit. Training would enable auditors to know the objectives of
performance auditing, the criteria for examination and guidelines for conducting audit to have a good capacity
building about performance auditing especially in case study area of ANRS public sectors. In addition to that, there
will be additional training throughout their career, which is compulsory to attend. Also, the researcher recommended
that all new auditors will be given proper training by the Office of Auditor General before they can do the audit and
they should provide a sufficient auditing equipment‘s which is necessary in conducting performance auditing and
to get reliable information for the auditors. The researcher also believes that the auditors are attending frequent
training and professional development programs.
From the case study areas of ANRS public sectors, it is also seen that the auditors need more expertise while
conducting performance audit. Lack of expertise and experience among the auditor may be one of the reasons that
the existence of performance audit ineffectiveness.
b) Consultation service should provide for the auditors in doing their works effectively and efficiently in a given case
study area of the ANRS public sector auditors of performance auditing. It should also need hiring consultants from
disciplines other than accounting, to be performance audit effective.
c) awareness level of the audit team should be improved through knowing the importance, scope, nature, and
methods applicable for performance auditing and also the regional Office of Auditor General should prepare
different seminars for the performance audit team for the creations of awareness among the audit team throughout
the course of the audit.
d) Accountability of the audit team should be improved throughout the course of the audit work and the Office of
Auditor General should give more emphasize for the follow -up procedures for each audit personnel to be
performance audit effective in the selected public sectors. In addition to this the OAG should play an important role
in promoting accountability and transparency in public spending.
The National/Regional Office of Auditor General and the Audit Department in each public- sector entities
should consider to provide an organizing awareness workshops to representatives of government entities in order to
help auditees better understand the importance of performance audit, to realize that their cooperation is needed
throughout the audit process and to take seriously the recommendations made by the auditors, in minimizing
the key constraints of undertaking performance audits.
e) Finally, the researcher recommends that some measures to be taken and those are: Building awareness among the
key stakeholders, Establishing a knowledge center, Separate advisory committee for each audit assignment,
Independent advisory committee for the Auditor General, Separate enactment for performance audit, Publicizing the
work of the Office by using different media, Increasing the performance audit coverage, Improving quality of audit
service ,Setting standard measurement for customer satisfaction, Taking Corrective actions based on audit findings &
recommendations, Updating database system or information technology usage and so on are some measures to be
taken by the Amhara National Regional State selected public-sector in achieving the performance audit goals and
objectives economically, efficiently and effectively.
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5.3. Suggestions for Future Research Areas
Performance audit is a broader scope of auditing which cannot be dealt with in its entirety in one study alone.
Because, performance audit is not just a tool like financial audit that can be easily standardized. Performance audit
is a management tool that provides information and feedback for organization improvement. The reviews in
performance audit are not limited to the financial accounting, but also include evaluation of the organizational
structure, standard of procedures, operating methods, and any aspects in the organization that individually or
together, have an impact to the organization‘s performance. Therefore, this study focused on only factors affect on
performance audit in the implementation process in few selected regional public-sectors. However, it would be
highly appropriate for future research to be conducted on the issue of the benefits, challenges and Factors in
Ethiopian context.
As performance auditing is a recent phenomenon in auditing sector no specific and comprehensive research
has been found on this topic. Only a very limited and discreet study has been done in this respect and those are in
the developed country context. Future studies can conduct in respect of developing country context.
This study employs quantitative and qualitative methods with the aims to explore and identify the existence of
factors in the public sector of ANRS. The finding of this study shows that there is a need for more research on
the effect of auditing standards and guidelines on the conduct of performance audit.
Page | 81
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Appendix A
SAMARA UNIVERSITY
College of Business and Economics
Department of Accounting and Finance
Questionnaire for ―Auditors”/“Employees” in the government public sectors on which
Performance audit were conducted.
I am MSc, student in Accounting & finance at Samara University, College of Business and Economics. This
questionnaire is required for the study entitled ―Factors affect on Performance Audit Implementation in the
Public Sectors of Amhara National Regional State. My study is a partial requirement for the completion of
master degree and it has undertaken for the academic purpose only.
This questionnaire is prepared in order to get the necessary information to undertake study on the above stated title.
The purpose of the study is to assess the Factors affect on performance audit in the public sectors of the region.
Since most of the questionnaires stated below are closed- ended type, responding them may not take much time.
Any information provided will have kept confidential. Therefore, I kindly request your esteemed cooperation for
volunteer to respond the questionnaire and provide accurate and complete data. For more information, you may
make contact me by the following address:
Wale Abie 0935717943 or Email: waleabiesu1003035@gmail.com
Thank you in advance for your time & cooperation!
Attention: Do not write your name.
Please Make a right mark that corresponds to your answer from the available choices.
Part One: Profile of the respondent
1. Your gender/sex 1. Male 2. Female
2. Your age 1. below 20 years old 4. 41-50 years
Page | 87
2. 20-30 years old 5. 51 years or above
3. 31-40 years old
3. Your level of education 1. Secondary school 3. Degree
2. Diploma 4. Masters 5. PhD
4. Your work position (level) in your organization
1. Top management
2. Middle management
3. Operational (any other position out of the above two)
5. Your Field of study 1. Accounting 3. Economics 5. Others
2. Management 4. Marketing
Part Two: Factors affect on Performance audit implementation concerned Questions.
I. Perceptions of the auditors on the performance audit.
In this part of the questionnaire, I am interested in your opinions about performance audit. There is no right or
wrong answers to any of these statements. What I would like you to do that simply read each statement as it
appears. Then indicate the extent of your agreement or disagreement by Making a right mark that best describes
your reaction to the statement: Strongly Disagree (1), Disagree (2), Neutral (3), Agree (4) and Strongly Agree
(5).
Statements 1 2 3 4 5
1. Performance audits build or increase public trust in your service delivery
2. performance audit has a controlling role
3. performance audit analyzed the economic aspects of your service delivery
4. performance audit analyze the efficiency of your service delivery
5. performance audit analyze the effectiveness of your service delivery
6. performance audit determine whether your sector programs comply with
Page | 88
applicable laws, rules, regulations, or policies and procedures
7. performance audit used as a whistle-blower function and draw your
organization ‗s attention to specific problems

8. Performance audit contributed to the well-being, motivation and
performance of your individual employee.

9. The performance audit implementations in your organization were
targeted or indicated the true problems.

10. The performance audit implementation in your organization is
appropriate, realistic and feasible.

11. The performance audit implementation were pointed out or show you the
serious problems.
Indicate the extent of your agreement or disagreement by Making a right mark that best describes your reaction
to the statement: Strongly Disagree (1), Disagree (2), Neutral (3), Agree (4) and Strongly Agree (5).
II. Limitations/obstacles of the auditors in the implementation of performance audit.
1. Absence of Performance Audit Guidelines
2.Performance Audit team itself lacks technical knowledge
3.Inadequate management information /Unavailability of sources of data
4. Lack of measurable final output /any limitations to the data used, and
audit findings
5. Performance audit takes more time and financial resources
6. Lack of good rapport between auditors and auditees
7.Inadequate staff of performance audit in terms of numbers and quality
8. Absence of performance audit rules and regulations
9. Lack of cooperation and commitment from auditees in conducting the
performance audit.
Page | 89
10. What are other kinds of problem you face while conducting performance audit? Please state if
any--------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------.
III. Your perception towards the Performance audit effectiveness major factors.
Please kindly indicate the appropriate scale for your opinion by Making a right mark on the spaces that indicate
your choice from the options that range from Strongly Disagree (1), Disagree (2), Neutral (3), Agree (4) to
Strongly Agree (5)’.
A. Performance auditor’s related factors.
I. Lack of Capacity Building: - 1 2 3 4 5
1. Absence of trained professionals in place greatly influences the
performance audit effectiveness.
2. Lack of sufficient and competent staff of performance audit.
3. Performance audit effectiveness have negatively influenced by sufficient
electronic equipment.
4. Lack of knowledge of the methods applicable to performance auditing and
the education, skills, and experience is barrier for the performance audit
effectiveness
5. Performance audit effectiveness depends on Auditors
knowledge/understanding of government organizations, programs, and

functions.
6. Seminars, workshops or training sessions are not always available for the
Public-sector auditors to participate.
II. Absence of Consultant Recruitment: -any specialists that are contracted to assist the audit team
during performance auditing.
Page | 90
1. Absence of skilled and experienced consultant manpower negatively
affects performance audit effectiveness.
2. Lack of Audit practitioners to give advice, guidance, techniques and
resource references to enhance the quality of performance audits.

3. Lack of participation of external experts (such as engineer, lawyer, doctor,
etc.) in a performance audit.

4. Lack of hiring consultants from displines other than accounting.
5. They cannot recruit consultant if needed due to Administrative constraints.
6. Budgetary limitations to recruit the consultant of performance auditing.
III. Lack of Awareness Level
1. Lack of spare time to attend different seminars, workshops or training
sessions to auditors and concerned personnel.

2. Absence of guidelines/standards about performance audit.
3. Lack of awareness about the utility, method and nature of performance
audit.
4. Lack of clearly defined scope of performance audit.
5. Weakness of using technology/updated database system by the entities in
the office.
6. Absence of cooperation between supportive executive and other
employees with in the entities to create awareness about performance audit.

7. Lack of awareness about the financial rules and regulations.
8. Lack of awareness about government accounting system and how to
maintain proper database.

IV. Absence of Pre-set Goals
1. The public-sector programs/activities of performance auditing lack clearly
defined goals/objectives.
2. Lack of implementation of key performance indicators (KPI) of the
performance auditing by the respective public-sector organizations.

3. Auditees do not take the necessary actions upon there commendations
suggested by the public-sector auditors.
Page | 91
4. Absence of transparent and clear audit procedure to the Audited
organizations during the course of audit.

V. Absence/Weakness for Accountability
1. Absence of Organized Audit Committee those are accountable for the
higher authority.
2. Lack of accountability of board members.
3. Poor compliance with internal policies.
4. Absence of the recognition of the responsibility for different parties.
5. Lack of Availability of competent specialists in the Audit committee.
6. Inadequate independence of the supreme audit institution.
VI. Lack of Top-management support
1. Senior top management is not aware of performance audit‘s needs.
2. Performance audit department is not large enough to efficiently carry out
its duties.
3. There is no adequate financial budget allocated for performance audit
activities.
4. Performance Audit reports does not value by top management.
5. Performance auditors‘ recommendations does not implement by the
management.
6. Performance auditors does not participate in planning of performance
audit.
7. What measures, you think, should be taken to improve performance audit in
the implementation phases?-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------.
B. Questionnaire related with Performance Audit Ineffectiveness.
Please indicate your level of agreement or disagreement on the following issues of Performance
Audit implementation. Strongly Disagree (1), Disagree (2), Neutral (3), Agree (4) and
Strongly Agree (5).
P age | 93
1. Performance audit implementation is not improved through training provided by
the supreme audit institution.
2. Performance audit implementation are not facilitating follow-up procedures to
determine whether appropriate corrective actions have been taken.
3. Invitation of independent experts and foreign specialists are not improving
Performance audit effectiveness.
4. Performance audit doesn.t improves when the Audit of economy, efficiency and
effectiveness conducted properly.
5. Performance audit doesn.t improve because of getting management support.
6. Performance audit doesn.t improves through the creation of awareness.
7. Performance audit doesn.t improves the accuracy and reliability of financial
reports.
8. Performance audit doesn.t improves through the existence of accountability.
P age | 94
Appendix B
Secondary Data Source
አባሪ 2
7.11 ከ 1996-2009 በ ጀት ዓ መት በ መደበ ኛ በ ክዋኔ ና በ ክትትሌ ኦዲት የ ተደረጉ መ /ቤቶች

ዝርዝ
ር
ተ. የመ/ቤትስም ሪፖርት ምርመራ

ቁ የቀረበበ
ትዘመን
ሀ. መደበኛ ክዋኔኦዲት
1 የቤቶችልማት ድርጅት /የቀድሞኪቤአድ/ 1996
2 የቀድሞ የአደጋ መከሊከሌ ና ዝግጁነት ኮሚሽን 1997
3 የገጠር መንገዶች ባስሌጣን የእቃግዥ፣ ንብረት 1997
አስተ/አጠቃቀም ና አወጋገድ ሁኔታ
4 የደ/ማርቆስከተማውሃናፍሳሽአገሌግልት 1998
5 የጐንደርከተማውሃናፍሳሽአገሌግልት 1998
6 ደሴከተማውሃናፍሳሽአገሌግልት 1998
7 ኮምቦሌቻግብርናምርምርማዕል 1998
8 የክሌለቴክኒክናሙያማስፋፊያቢሮ 1999
9 የክልልግብርናምርምርኢንስቲቲዩት 1999
10 የጐንደርከተማአገሌግልት ጽ/ቤት 1999
11 ቆቦጊራናሸሇቆሌማትፕሮግራም ጽ/ቤት 2000
12 ባህርዳርከተማአገልጒት ጽ/ቤት 2000
13 የመድሃኒትግዥ፣ አስተዳደርናቁጥጥርመምሪያ 2000
14 ፍኖተሰሊምሆስፒታሌ 2001
15 ደሴከተማአገሌግልት ጽ/ቤት 2001
16 የሰሜንሸዋዞንግብርናገጠርሌማትመምሪያ 2001
17 ደቡብጐንደርዞንግብርናገጠርሌማትመምሪያ 2001
18 የጐንጂቆሇሊየቅርስጥበቃማስተ/ጽ/ቤት 2001
19 ደቡብወልዞንትራስፖርት ጽ/ቤት 2002
20 ምስራቅጐጃምዞንትራንስፖርት ቅ/ጽ/ቤት 2002
21 የክሌለቤቶችሌማትፕሮጀክት ጽ/ቤት 2002
22 ደብረማርቆስከተማአገሌግልት ጽ/ቤት 2002
Page | 95
23 የኮምቦሌቻቴክኒክናሙያትም/ስሌ/ኮላጅ 2002
24 የደብረማርቆስትምህርትኮላጅ 2003
25 የእንጅባራከተማአገሌግልት ጽ/ቤት 2003
26 የደብረታቦርሆስፒታሌ 2003
27 የቡሬቴክኒክናሙያትም/ስሌ/ኮላጅ 2003
28 የደብረታቦርከተማአስተዳደርአገሌግልት ጽ/ቤት 2004
29 የደብረብርሃንከተማአስተዳደርአገ/ት ጽ/ቤት 2004
30 የወሌድያከተማአስተዳደርአገሌግልት ጽ/ቤት 2004
31 የደብረብርሃንበግናመኖእጽ/ዘርብዜትማዕከሌ 2004
32 የሰቆጣዝናብአጠርግብርናምርምርማዕከሌ 2004
33 የሞጣማረሚያቤትአስተዳደርመምሪያ 2004
34 ኢንዱስትሪናከተማሌማትቢሮ 2005
35 የባህሌቱሪዝምናፓርኮችቢሮ 2005
36 የገጠርመንገዶችባሇስሌጣን 2005
37 የጥቃቅንናአነስተኛማስፋፊያኤጀንሲ 2005
38 የሰሜንጐንደርዞንኤችአይ ቪ ኤድስሴክሬታሪት ጽ/ቤት 2005
39 የክሌለገቢዎችባሇስሌጣን 2005
40 ሰራተኛናማህበራዊጉዳይቢሮ 2005
41 ንግድናትራንስፖርትቢሮ 2005
42 የአካባቢጥበቃናመሬትአስተዳደርናአጠቃቀምቢሮ 2005
43 ትምህርትቢሮ 2005
44 ውሃሃብትሌማትቢሮ 2006
45 የገጠርኢነርጅናማዕድንሃብትሌማትማስፋፊያኤጀንሲ 2006
46 የአብክመህብረትስራማህበራትማስፋፊያኤጀንሲ 2006
47 የደቡብወልዞንግብርናመምሪያ 2006
48 የአማራስራአመራርአካዳሚ 2006
49 የአማራገጠርመንገድኮንስትራክሽንኤጀንሲ 2007
50 ጠቅሊይፍርድቤት 2007
51 አብክመሴቶችናህፃናትወጣቶችቢሮ 2007
52 አብክመኢንቪስትመንትኮሚሽን 2007
53 አብክመከተማሌማትቤቶችናኮንስትራክሽንቢሮ 2007
54 ሳይንስናቴክኖልጂኮሚሽን 2007
55 የደብረማርቆስፖሉስኮላጅ 2008
P age | 96
56 አብክመማረሚያቤቶችኮሚሽንእናቅድመሪፖርትየተሊሇፈበት 2008
57 አብክመ ገ/ኢ/ሌ/ቢሮ /ስሇተሽከርካሪ/ 2008
58 አብክመንግድኢንዱስትሪናገበያሌማትቢሮ 2008
59 አብክመሰራተኛናማህበራዊጉዳይቢሮ 2009
ሇ. ክትትሌኦዲት
60 የደቡብጐንደርዞንግብርናመምሪያ /ክትትሌ/ 2006
61 ደብረታቦርሆስፒታሌ 2007
62 ደብረማርቆስመምህራንትምህርትኮላጅ 2007
63 ደብረብርሃንየበግብዜትናዝርያማሻሻያማዕከሌ 2007
64 ሰቆጣዝናብአጠርግብርናምርምርማዕከሌ 2008
65 የሞጣማረሚያቤት /ክትትሌ / 2008
66 የእንጅባራከተማአስተዳደርአገ/ት ጽ/ቤት /ክትትሌ/ 2008
67 ቡሬፖሉቴክኒክኮላጅ /ክትትሌ/ 2008
68 የአብክመገጠርመሬትአስተዳደርናአጠቃቀምቢሮ /ክትትሌ/ 2009
69 የአብክመገጠርመንገዶችኮንስትራክሽንኤጀንሲ /ክትትሌ/ 2009
70 አብክመገቢዎችባሇስሌጣን /ክትትሌ/ 2009
71 አብክመባህሌናቱሪዝምቢሮ /ክትትሌ/ 2009
Message from Auditor General
The Amahara National Regional State Office of Auditor General has passed through the era of two five year
strategic plan periods & now the office has launched the third strategic plan for (2010/11-2014/15) to come up in
line with new transformational developments of the profession in accordance with the principles of International
Organization of Supreme Audit Institutions (INTOSAI) and the African Organization of Supreme Audit
Institutions (AFROSAI) & regional constitution.
During the last two strategic planning periods the Office of Auditor General has made the following major
activities:
P age | 97
Page | 98
g for different
types of audits.
-engineering (BPR).
Due to the above activities, In terms of entities the coverage of financial and compliance audit was 7-10%, in the
earlier years and it has moved up to 30% since 2009. Now the techniques of comparison is changed from entities to
budget as result 50% of the total regional Government budget is covered in auditing at last it will be reached up
to 75% of the total budget in the strategic period. On the other hand, Performance audit started from nothing
lately in 1987 and gradually, it grows up to 5 entities in average per annum since 2010/11. Moreover, the office has
conducted the regional consolidated fund accounts continuously. Generally, audit recommendations are a positive
tool for continuous improvement and it plays a significant role in financial transparency and accountability.
There were challenging conditions to achieve the above results. Among these:
ed and skilled staff turnover is leading to undesirable hire and training costly to the
office.
no strong OAG as well as strong and organized private auditors and accountant‘s associations.
work load of audit managers and auditors in administrating audit quality.
Page | 99
ers and people do not have adequate awareness in the importance of auditing and lacks of
coordination with concerned stakeholders are among the major challenges.
Based on the regional growth and transformation plan and by minimizing the above challenges, the Office of
Auditor General envisions transparency, effectiveness & financial accountability in the region through this strategic
plan over the next five years.
I convey a message to the regional council, the budget and government finance affair‘s committee, the regional
government, private audit firms and all other stakeholders to stretch hands for necessary support expected from
them.
Finally, I belief & would like to express that at the end of this strategic plan, we will have an audit institution
which capable to provide an important audit service & promote financial transparency, effectiveness &
accountability system.
The major activities to be accomplished over the next strategic period such as finance, compliance, performance,
environmental and the regional consolidated fund accounts audit and various capacity building activities are
included in the plan. Specially, our audit coverage with quality of work focuses on the manner with budget
flow assumption that it follows as the regional development directions. The office identified factors that will
influence its performance during the implementation period of the strategic plan /2010/11-2014/15/ and the office
also identified one strategic theme and 14 objectives. In general this strategic plan is subject to continuous
improvement as the challenges we face and it serves as basic guide line.
Gared Lebese
Auditor General /CIA/

CLEAR MSTV10N19 JJ2020 Wale Final Resarch11

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Indexed Print ISSN: 2249 3492, Online ISSN: 2249 3506

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

FACTORS AFFECT ON PERFORMANCE AUDIT IMPLEMENTATION IN

*Wale Abie **Prof. Dr. Chinniah Anbalagan*** Ebrahim Mohammed

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

performance audit goals and objectives.

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

1.7. Limitation of the Study

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

A Blind Peer Reviewed and Open Access Journal

IJRMS Vol-10, Issue-19 pp. 82-81 Jan-Jun 2020

Impact Factor ----------------------------------------------------------------------------

Management, Sciences and Technology

Wale Abie Prof. Dr. Chinniah Anbalagan Ebrahim Mohammed