Performance Audit: A Tool for Improvement


In order to make the results of the Performance Audit acceptable some recommendations can be given;

  1. The experience shows that the government departments and agencies care little to learn from the lessons of the Performance audit everywhere. Audit reports keep on piling. Even the instructions of the Public Accounts Committees seem to carry little influence. It is recommended that there should be some institutional mechanism to provide feedback on the results of the Performance audit in the planning process.
  2. All the departments should set up small sections to compile ‘lessons learnt’ and to ensure that these are not forgotten at the time of future planning.
  3. Auditors should issue different reports, guidelines for the auditees when a formal audit exercise is not in vogue. It will help as a confidence-building measure and an auditor will be considered as a helping hand rather than an unwanted intruder.
  4. Seminars should be held that may promote and publicize the results of any past audits. This will help play an effective role in making feedback useful.
  5. International best practices both from the viewpoint of audit and auditee may be shared with all the stakeholders.
  6. Public Accounts Committees both at the federal and provincial level should be more effective and active and work as a guide to the legislators for future budget making and financial integrity.
  7. Department of Auditor General of Pakistan should be proactive in its approach towards Performance Audit and it should be spare more funds and personnel to make it a permanent feature.
  8. Last but not least is the establishment of a comprehensive system of rewards and incentives must be introduced.


  1. Åge Johnsen, Pentti Meklin, Lasse Oulasvirta, and Jarmo Vakkuri. “Performance auditing in local government: an exploratory study of perceived efficiency of municipal value for money auditing in Finland and Norway.” European Accounting Review, Volume 10, Issue 3, 2001: 583-599.
  2. Ahmad, Wasim, Shahzana Durrani, and Khalid Umar Rajoka. Performance Report on Benazir Income Support Programme. Islamabad: Directorate General of Federal Government Audit, 2010.
  3. Ahmad, Zamir. Audit of Programmes. Lahore: Department of Auditor General of Pakistan, 1993.
  4. —. Auditing of Projects. Islamabad: Department of Auditor General of Pakistan, 1993.
  5. —. Introduction to Performance Audit. Islamabad: Deaprtment of Auditor General of Pakistan, 1993.
  6. —. Understanding Performance Audit. Lahore: Deapertment of Auditor General of Pakistan, 1993.
  7. —. Understanding Performance Audit. Lahore: Deaprtment of Auditor General of Pakistan, 1993.
  8. Assembly, National. Fiscal Resposibility and Debt Limiattions. Islamabad, 2005.
  9. Buhr, Nola. “Environmental performance, legislation and annual report disclosure: the case of acid rain and Falconbridge.” Accounting, Auditing & Accountability Journal, Vol. 11 Issue: 2, 1998 pp.163 – 190.
  10. Daujotaitė, Dalia, and Irena Mačerinskienė. DEVELOPMENT OF PERFORMANCE AUDIT IN PUBLIC SECTOR . Conference Report, Vilnius, Lithuania: Vilnius Gediminas Technical University, 2008.
  11. Hussain, Manzur. Performance Report on construction of Sukkar Bypass Project. Islamabad: Deaprtment of Auditor General of Pakistan, June 2002.
  12. Khan, Muhammad Akram. Executing Performance Audit. Gulberg III, Lahore: Department of Auditor General of Pakistan, November, 1988.
  13. —. Performance Audit Manual. Islamabad: Department of Auditor General of Pakistan, April 2012.
  14. Nath, Nirmala, KarenVan Peursem, and Alan Lowe. “Emergence of Public Sector Performance Auditing: A Historical erspective.” Malaysian Accounting Review, May 2006: 43-63.
  15. Standars of Performance Audting. Lahore: Performance Audit Wing, Department of Auditor General of Pakistan, March 1988.
  16. PDIP, MWP-USAID. IESCO Operational Audit Report. Islamabad: IESCO, April 2011.
  17. Rutman, L. Programme Evaluation and Performance Audits.

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