Abstract:
The public sector has implemented policies to fulfil the New Public Management strategy. In Ghana, the performance of public sector organisations has been the focus of the New Public Management agenda. Consequently, performance audits have been introduced by the Auditor-General to examine the use of resources to achieve organisational goals. This study examines the use of performance audits, the perception of the usefulness of performance audits, and the challenges in conducting performance audits in the Ghanaian public sector. The study adopted a qualitative approach. The data was collected using six key respondents who are auditors and management members of a government ministry in Ghana. The study found that public sector organisations conduct performance audits utilising the expertise of the Ghana Audit Service. The study found that the Three E’s, namely economy, efficiency, and effectiveness, are primary criteria for assessments. The study also found that the competency of auditors, perception of audit quality, and the agreement of audit reports are factors that affect the perception of the usefulness of performance audits. Performance audits were found to lead to changes in budgetary allocations, changes in strategies, internal controls, and staff training. The study also identified that the lack of support from the management of organisations and disagreements with audit reports are the main challenges facing performance audits. This study recommends using performance audits as a means of enhancing public sector performance in developing economies. This study contributes to knowledge of performance audits in the Ghanaian public sector.
