Evolution of traditional and non-traditional roles
Research sponsored by The IIA Research Foundation identified five major performance measurement-related roles of government auditors that have emerged in professional practice. While auditors can do quite advanced work in all five roles, some of these are more “traditional” roles for auditors and some are “non-traditional” roles, based on how far beyond historically traditional audit practice these roles take auditors.
“Traditional” roles of auditors in government performance measurement are:
- Audit Performance or PM Systems: Auditing or assessing performance or performance management systems
- Assess Performance Information: Assessing the quality of performance information or performance reports
These two roles closely resemble roles auditors have traditionally played, outside the realm of performance measurement. Role 1 includes much of what auditors do in performance or management auditing, a well defined practice. For example, in the United States, the 2007 edition of Government Auditing Standards (the “Yellow Book”) by the U.S. Government Accountability Office (GAO), is the fifth edition since 1972 that provides guidance to auditors in performance auditing. Role 2 extends typical auditor roles of testing the relevance and reliability of data to performance information and reports.
“Non-traditional” roles of auditors in performance measurement are:
- Define or Measure Performance: Developing performance measures or measuring performance, outside the traditional audit process
- Encourage or Assist Management: Planning, designing, improving, or advocating for performance management systems and their use
- Assist Elected Officials or Citizens: External reporting, capacity building, or advocacy for the use of performance information
Roles 3-5 take auditors beyond their traditional roles and audit processes, into other avenues to help establish or improve performance management or accountability in their entity. In roles 3 and 4 they may provide advice, training, or assistance to help management determine what to measure, and how to build, improve, or better use performance management systems. Some auditors, in role 3, regularly measure performance outside the traditional audit process. In both Roles 4 and 5 auditors can become advocates for strengthening performance management and accountability. In Role 4 auditors advocate to management, while in Role 5 they advocate to external stakeholders (defined here as including non-executive elected officials as well as citizens and others external to the entity). In Role 5, auditors may also take the initiative in issuing external performance reports or in helping external stakeholders use performance information. They may also interact directly with the public.
Some practices in these “non-traditional roles” may be considered “nonaudit services.” A variety of nonaudit services are discussed in the 2007 edition of Government Auditing Standards, which also notes (in Appendix 1, paragraph A3.03.k) that some services may be performed as either audit services or nonaudit services. These include “identifying best practices or leading practices for use in advancing the practices of government organizations,” which an auditor may do as part of Roles 4 or 5, giving auditors a choice about whether or not to perform some of these practices as audits. Chapter 3 of the 2007 Yellow Book particularly examines nonaudit services with respect to potential impairments to auditor independence. Auditors concerned with maintaining independence should also see the discussion of independence issues on this website. |
