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An audit office can tell whether quality is improving only by comparing a documented baseline with a later assessment of both its quality-management system and the audits it actually delivers. Use the same scope, audit types, criteria, and evidence standards where possible; compare indicator-level results and the explanations behind them; then test whether changes are visible in completed audit files, reporting, follow-up, and stakeholder use. A higher composite score alone is not proof of better audit outcomes or public impact.
For a Supreme Audit Institution (SAI), the voluntary SAI Performance Measurement Framework, Version 2022 (SAI PMF) provides a structured starting point. A local or internal audit office can use the same measurement logic, but must adapt the criteria to its legal mandate, professional standards, and types of work.
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Define what “better audit quality” means for your office
Before collecting data, decide which improvement the office is trying to demonstrate. Audit quality is not one number. It includes whether the office has appropriate policies and competent staff, whether those controls operate in real engagements, whether reports are accurate and useful, and whether recommendations are followed or otherwise used by the intended stakeholders.
Separate three questions that are often confused:
- System question: Are quality policies, supervision, consultation, independence safeguards, training, and monitoring arrangements designed and maintained?
- Engagement question: Do sampled audits show sound planning, sufficient and appropriate evidence, reasoned conclusions, clear reporting, and documented review?
- Impact question: Are reports timely, understood, acted on, or reflected in improved public administration? These outcomes are influenced by factors outside the audit office, so they cannot be attributed to a score increase without additional evidence.
Write the intended decision in the assessment terms of reference (TOR). For example, the purpose might be to determine whether a revised quality-control policy is operating, to prioritize capacity development, or to prepare a repeat SAI PMF assessment. A precise purpose prevents the office from collecting impressive-looking statistics that do not answer a management question.
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Choose a framework that fits the mandate
When SAI PMF is appropriate
SAI PMF is designed for Supreme Audit Institutions and is voluntary. The 2022 framework uses 25 indicators as the basis of its performance report, including 13 indicators in the Audit Quality and Reporting domain. It also examines organization-wide quality management and quality assurance. More than 20 pilot assessments informed the framework’s development; that figure describes the framework process, not an expected improvement rate for an individual office.
Three indicators are specific to SAIs with jurisdictional functions. They do not apply to every SAI, so an office must document which indicators are relevant to its mandate rather than forcing a complete set onto incompatible work.
When adaptation is necessary
A municipal, legislative, internal, or specialist audit office may not be an SAI and may not perform the audit types assumed by SAI PMF. Use the framework’s evidence-and-comparison approach only after mapping it to the office’s statute, applicable ISSAIs or national standards, ethics and independence rules, and reporting responsibilities. INTOSAI’s audit standards explain the role of ISSAIs in public-sector auditing; the governing local standards remain the test of compliance for the office being assessed.
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The INTOSAI-Donor Cooperation overview describes SAI PMF as an international assessment against ISSAIs and good practices. OECD and INTOSAI Development Initiative material published in 2026 places the framework in a continuing implementation context that includes training, guidance, quality assurance, and updates. Those developments do not make the framework mandatory or turn it into a universal scorecard.
Design the assessment before collecting evidence
Put the comparison rules in the TOR
The TOR should state:
- the purpose and decision the assessment will support;
- the period covered and the proposed repeat-assessment date or review window;
- the audit types, units, offices, and functions included;
- the professional criteria and standards against which work will be judged;
- the indicators selected, including any that are inapplicable and why;
- the file-sampling method and what counts as representative work;
- the evidence-access, confidentiality, and independence arrangements; and
- who will approve the report and own the resulting actions.
Documenting these choices is essential. A later score can appear to improve simply because the second assessment covered easier audits, a different department, or a narrower period.
Appoint a qualified and independent team
Use assessors who understand the office’s audit types and the applicable standards. Include people who can evaluate both system design and technical file evidence. If the team helped create the policies being assessed, add an independent reviewer or peer-review step to reduce self-assessment bias. The assessment report should explain how evidence was obtained and how it supports each score.
Define a repeatable sampling plan
Identify the population of completed audits for the period, classify it by audit type and material risk, and select a sample that can be reproduced at the next assessment. Record exclusions and substitutions. A sample limited to flagship reports cannot establish office-wide quality; a purely random sample may miss high-risk or unusual engagements. A defensible design can combine representative coverage with a small, deliberately selected set of high-risk or complex audits, provided the two purposes are reported separately.
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Build an evidence-backed baseline
The baseline is the reference point against which later change is judged. Record the indicator score, the underlying evidence, the assessor’s explanation, and any uncertainty. Do not publish only a total or average: the office needs to know which capability changed and why.
Capture organization-wide controls
Review the quality-management system as it exists on the assessment date. Evidence may include the quality manual, independence and ethics procedures, engagement acceptance rules, supervision and review requirements, consultation protocols, competence and training records, resource planning, complaints handling, and monitoring reports. Note whether a control is merely approved on paper, consistently implemented, or tested and corrected when it fails.
Examine completed audit work
For each sampled engagement, assess the dimensions that apply to its audit type:
- planning, risk assessment, materiality, objectives, and criteria;
- team competence, independence, time budget, and supervision;
- evidence gathering, documentation, analysis, and resolution of contradictory evidence;
- review notes, consultation, approvals, and clearance of significant issues;
- report accuracy, clarity, balance, timeliness, and linkage to findings and evidence; and
- follow-up of recommendations or other agreed actions.
Not every audit type uses the same documents or reporting path. Mark a dimension as not applicable only with a written rationale, and do not compare an indicator across periods if its meaning changed.
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| Evidence area | What to record | Why it matters for a later comparison |
|---|---|---|
| Quality policy and governance | Applicable policy, approval date, roles, independence safeguards, and implementation evidence | Shows whether system design or ownership changed |
| Monitoring and quality assurance | Internal monitoring plan, completed reviews, findings, remediation, and escalation | Distinguishes a control that exists from one that detects and fixes defects |
| Staff competence and resources | Qualifications, relevant training, workload, specialist access, and turnover during the period | Explains changes that may otherwise be misread as policy effects |
| Audit planning and execution | Sampled files, criteria, evidence, supervision, consultation, and review trail | Tests whether procedures operate in real work |
| Reporting and follow-up | Report quality and timeliness, stakeholder feedback, recommendation tracking, and evidence of use | Connects technical quality with usefulness without claiming sole causation |
Triangulate evidence instead of relying on one metric
SAI PMF states that the assessment should be evidence based. In practice, that means testing important conclusions through more than one source where feasible. A policy can show intended practice; a working paper can show what happened; a monitoring or peer-review record can show whether the office detected the gap; and a follow-up record can show whether the response worked.
Evidence sources to combine
- Policies and procedures: current manuals, templates, delegations, and approved methodologies.
- Audit files and working papers: the primary evidence of planning, testing, review, conclusions, and reporting.
- Monitoring records: internal inspections, cold reviews, hot reviews, root-cause analyses, corrective actions, and closure evidence.
- Independent or peer review: external quality reviews, professional-body reviews, or a suitably independent internal function.
- Academic or specialist review: structured examination of methods or reports when relevant to the office’s mandate.
- Stakeholder surveys and interviews: evidence about clarity, relevance, accessibility, and perceived usefulness, interpreted alongside file evidence.
- Follow-up and feedback: responses to recommendations, management actions, legislative discussion, and documented use of findings.
Interviews and document review are core elements of the SAI PMF process. Use an interview protocol tied to the indicators, preserve notes, and corroborate material assertions. Positive perceptions cannot substitute for missing audit evidence, and a file defect should not automatically be generalized to every engagement.
Protect confidentiality and independence
Limit file access to the assessment team, remove unnecessary personal information, and store evidence under the office’s records rules. Assessors should disclose conflicts and avoid evaluating work they directly supervised. Where the office lacks an independent monitoring function, commission a peer or external review for at least part of the sample and identify that limitation in the report.
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Compare the repeat assessment on a like-for-like basis
Repeat the assessment on a planned cycle that matches the office’s risk, workload, and capacity. No universal interval is established by SAI PMF; the office should justify its timing and use interim monitoring for urgent risks. At the repeat assessment, compare indicator-level results and narrative findings, not merely the composite.
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| Comparison dimension | Questions to answer before interpreting movement |
|---|---|
| Scope and audit mix | Did the same units, periods, and audit types receive comparable coverage? |
| Criteria and standards | Were the legal mandate, ISSAIs, national standards, and methodology unchanged or clearly mapped? |
| Indicator evidence | Does the later score rest on evidence of similar depth and quality? |
| Monitoring coverage | Did internal or independent review examine representative work in both periods? |
| Competence and resources | Did staffing, specialist access, training, workload, or leadership change? |
| Reporting | Are timeliness, accuracy, clarity, and stakeholder access measured on the same basis? |
| Follow-up and use | Is there comparable evidence that recommendations were addressed or used? |
When scope or criteria changed, show the old and new coverage separately and explain the break in comparability. If a score rises after an indicator was narrowed, the honest finding is that the result is not directly comparable, not that quality improved. Preserve the original evidence and narrative so another assessor can reproduce the judgment.
Interpret score movement as a signal
A higher indicator score identifies an area for investigation. Check whether the underlying control now operates, whether sampled files demonstrate the expected behavior, and whether monitoring confirms that the change is sustained. A lower score may reflect deterioration, a more demanding standard, broader sampling, or better detection of previously hidden weaknesses. Treat the score as a diagnostic signal, not a causal estimate.
Measure the quality system and the audit product together
An office can have an excellent manual and weak files, or strong individual auditors working around an ineffective system. The assessment therefore needs two connected views.
Quality-management indicators
Examine policy completeness, role clarity, independence safeguards, consultation, supervision, competence development, resource allocation, complaints handling, and the monitoring cycle. For each control, record design, implementation, operating effectiveness, exceptions, and corrective action. A control that was introduced halfway through the period should not be treated as if it governed all sampled audits.
Audit-quality indicators
Review whether engagement teams applied the methodology and standards to actual work. Look for traceability from objective to criteria, risk, procedures, evidence, finding, conclusion, and recommendation. Test whether reviewers challenged unsupported assumptions and whether the final report remained faithful to the file. Measure timeliness only with a defined start and end point, such as authorization to publication, and keep that definition constant.
Follow-up and public use
Track whether recommendations receive a documented response and whether the office verifies implementation where its mandate permits. Stakeholder use can be assessed through parliamentary or governing-body consideration, management action, or documented changes in practice. These are relevant outcome signals, but they are affected by political, administrative, and economic conditions; report association rather than claiming the audit caused the result.
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Turn findings into an improvement plan
SAI PMF is a diagnostic and performance-assessment framework. It does not itself prescribe future reform recommendations. Use the assessment to prioritize actions through the office’s strategic-planning or capacity-development process.
- Rank findings by risk and reach. Give priority to weaknesses that could invalidate conclusions, compromise independence, affect many engagements, or prevent detection of errors.
- Define an observable change. Replace “improve supervision” with a measurable condition, such as documented review of specified high-risk judgments before report approval.
- Assign one accountable owner. Name the function or executive responsible; list supporting teams separately.
- Set milestones and evidence. Specify the policy, training, pilot files, monitoring result, or independent review that will demonstrate completion.
- Pilot before scaling. Test a revised method on a defined audit type, record defects and workload, then adjust the method before applying it office-wide.
- Schedule verification. Put a later file review or monitoring test on the calendar. Closing an action because a procedure was issued is not evidence that it operates.
- Feed verified results into the next baseline. Preserve the same definitions and sampling logic so the next assessment can distinguish implementation from intent.
This cycle turns a static score into management information: finding, root cause, intervention, operating evidence, and verified change.
Use independent monitoring as an assurance layer
Independent monitoring is especially important when the office assesses itself. India’s Comptroller and Auditor General, in its CAG’s Auditing Standards 2017, states: “SAI shall establish a monitoring process designed to provide it with reasonable assurance that the policies and procedures relating to the system of quality control are relevant and adequate and is operating effectively.” That language is specific to SAI India, but it illustrates the assurance principle: monitoring should test relevance, adequacy, and effective operation rather than merely confirm that a policy exists.
Possible assurance methods include periodic independent file review, peer review, external professional review, academic review of methods, and targeted follow-up of high-risk findings. Report the reviewer’s independence, scope, sample, criteria, unresolved disagreements, and management response. A review that covers only policy documents cannot provide assurance about engagement execution.
Report results so readers can judge the change
A credible performance report should let a reader reconstruct the comparison. Include:
- the mandate, period, offices, audit types, and indicators covered;
- the standards and criteria used, including changes since the prior assessment;
- indicator-level scores with the evidence summary and explanation for each movement;
- sample size, selection method, exclusions, and limits on representativeness;
- system findings and engagement findings shown separately;
- changes in staff, resources, leadership, technology, or external conditions that could affect results;
- independent-review or peer-review coverage and any unresolved limitations; and
- the prioritized action plan, owners, milestones, and verification dates.
Keep composite scores, if used, subordinate to the underlying evidence. Explain which findings are supported by repeated evidence and which remain hypotheses requiring monitoring. State explicitly when a comparison is not valid because scope, standards, or audit mix changed.
Common measurement failures and practical fixes
Failure: treating a single score as the verdict
Fix: Publish the indicator profile, evidence narrative, and material exceptions. Investigate both positive and negative movement.
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Failure: measuring policies but not files
Fix: Pair every important system control with sampled engagement evidence and monitoring records.
Failure: changing the sample between periods without disclosure
Fix: Preserve the population definition and sampling method; explain unavoidable changes and present non-comparable results separately.
Failure: counting training as improved competence
Fix: Verify application through file review, supervision results, and recurring defects. Attendance proves participation, not changed practice.
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Fix: Use surveys to assess relevance and usability, then triangulate them with technical evidence and follow-up.
Failure: claiming causal impact from timing alone
Fix: Identify other changes, document the intervention, and describe the result as associated unless a stronger evaluation design supports causation.
Failure: applying every SAI PMF indicator to every office
Fix: Confirm mandate and applicability. Record inapplicable indicators, including the three jurisdictional-function indicators where the office does not have that function.
Failure: closing actions when documents are issued
Fix: Require operating evidence and a later verification review before marking an action complete.
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For most offices, the following sequence is a workable operating model:
- Approve the purpose, scope, standards, indicators, team, and TOR.
- Collect and index baseline evidence, including system documents, sampled files, monitoring records, and feedback.
- Score and explain each applicable indicator; record uncertainties and limitations.
- Agree a prioritized improvement plan with owners, milestones, and verification evidence.
- Monitor implementation during normal quality-assurance work rather than waiting for the next full assessment.
- Repeat the assessment using the documented design, then compare like with like.
- Publish the comparison and update the next action plan.
The framework can organize this cycle, but the office must supply the judgment, evidence, and context. There is no generally established statistic for how quickly audit quality should improve; the defensible result is an office-specific trend supported by comparable evidence.
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