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An audit office can tell whether audit quality is improving only by establishing an evidence-backed baseline, repeating the assessment on a defined cycle, and examining both its quality-management system and the quality of completed audits. A higher score is a reason to investigate—not proof by itself that audit outcomes or public impact have improved.

For a Supreme Audit Institution (SAI), the voluntary SAI Performance Measurement Framework (SAI PMF), Version 2022 provides a practical structure. Other audit offices can adapt the method to their legal mandate, professional standards, audit types and available evidence.

Define what “better audit quality” means

Audit quality is not one number. It is the combination of the conditions that make reliable work possible, the way individual audits are planned and performed, the usefulness and timeliness of reports, and what happens after recommendations are issued.

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A credible measurement design therefore separates at least three questions:

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  • Are the office’s quality controls designed and operating? This covers policies, supervision, consultation, monitoring, staff competence and resources.
  • Are those controls visible in completed audit work? File reviews and working papers show whether planning, evidence gathering, analysis, review and reporting met the applicable criteria.
  • Is the work useful and acted upon? Follow-up, stakeholder feedback and evidence that recommendations are used provide context, but they are affected by factors outside the audit team’s control.

The first two questions are the core quality assessment. The third helps explain public value without pretending that an audit office alone controls policy results.

Choose a measurement framework and write the assessment terms

Use SAI PMF when the office is an SAI

SAI PMF is an international assessment framework for SAIs, using ISSAI requirements and good practices as reference points. The 2022 version is voluntary and designed to diagnose performance, support improvement planning and allow repeat assessments. Its 25 indicators form the basis of the performance report; 13 sit in the Audit Quality and Reporting domain. Three indicators concern SAIs with jurisdictional functions, so they do not apply to every SAI.

More than 20 pilot assessments informed development of the 2022 framework. That figure describes the framework’s development process, not an expected rate of improvement for an individual office.

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Document the purpose and scope before collecting evidence

Put the following in the assessment Terms of Reference:

  • the decision the assessment must support, such as a new quality strategy, a peer review or a follow-up to a previous assessment;
  • the organizational units and period covered;
  • the audit types included—financial, compliance, performance or other work within the mandate;
  • the professional criteria and standards in force during the period;
  • the indicators to be assessed and any indicators that are out of scope;
  • the sampling approach for audit files and monitoring records;
  • the assessment team, quality-assurance arrangements and reporting timetable; and
  • the planned date or trigger for the next assessment.

For a non-SAI audit office, use the same design discipline but substitute the standards and statutory requirements that govern that office. Do not present an adapted score as an official SAI PMF result.

Build an evidence-backed baseline

Appoint a qualified assessment team

The team should understand the office’s mandate, the audit methods being assessed and the applicable professional criteria. Independence matters: a self-assessment can identify issues quickly, but an independent or peer review adds challenge and credibility. Record conflicts of interest and how they were managed.

Collect documents and interview the people who use the system

SAI PMF describes document review and interviews as core elements. Start with the policies and procedures, then test whether they operate in practice. Useful baseline evidence includes:

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  • quality-control and quality-management policies, manuals and approved methodology;
  • annual plans, risk assessments, engagement plans and budgets;
  • audit files, working papers, evidence indexes and review notes from a representative sample;
  • supervision, consultation and approval records;
  • monitoring reports, cold-file reviews, hot reviews and corrective-action logs;
  • training records, competency assessments, recruitment information and workload data;
  • published reports, clearance correspondence and timeliness records;
  • independent, peer or academic reviews;
  • stakeholder surveys, interviews and complaints information; and
  • follow-up files showing the status and use of recommendations.

For every indicator, retain the source, period, sample and explanation for the score. A composite number without its evidence cannot be reproduced or intelligently compared.

Write a narrative beside every score

The baseline report should state what the evidence shows, what it does not show, and any limitations. Explain whether a control is documented, implemented consistently, monitored, and corrected when it fails. If evidence is mixed, preserve that distinction rather than forcing a confident overall rating.

Measure the quality-management system and the audit work separately

Organization-wide quality management

Examine whether the office has a coherent system and whether leaders use it. Depending on the mandate, look at:

  • leadership responsibility for quality and ethical requirements;
  • independence, objectivity and conflict-of-interest safeguards;
  • acceptance and continuation decisions;
  • methodology, consultation and escalation rules;
  • recruitment, training, supervision and specialist support;
  • resources, workload and scheduling that allow required procedures to be completed;
  • monitoring coverage, findings, root-cause analysis and remediation; and
  • how lessons from reviews are incorporated into guidance and training.

A policy that exists only in a manual is not the same as a control that operates. Test implementation through files, records and interviews.

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Completed audit work

Select work that represents the office’s audit portfolio and inspect the full trail from planning to follow-up. Depending on the audit type, review whether teams:

  • identified material risks and translated them into objectives and procedures;
  • used sufficient, appropriate and documented evidence;
  • applied the approved methodology and obtained required specialist or legal input;
  • documented supervision, review and resolution of significant matters;
  • supported findings and conclusions with a clear chain of evidence;
  • reported accurately, clearly and on the required timetable; and
  • tracked recommendations and reported follow-up results.

The sample must be large and varied enough to avoid judging the whole office from an unusually strong or weak engagement. If the sample changes between periods, say so and explain how that affects comparability.

Use multiple evidence sources, not a single satisfaction score

Evidence source What it can establish Important limitation
Policies and methodology Whether required controls and procedures are defined. A document does not prove implementation.
Audit files and working papers Whether teams applied procedures, documented evidence and resolved review points. Sampling and file availability affect representativeness.
Monitoring and quality-assurance records Whether the office detects deficiencies, analyzes causes and remediates them. Monitoring that covers only easy or recent work can overstate performance.
Independent or peer review External challenge to the office’s self-assessment and interpretation. Review scope, criteria and timing may differ from the baseline.
Academic review Specialist analysis of methods, evidence or reporting. It may examine only a topic or a small set of audits.
Stakeholder surveys and interviews Perceptions of relevance, clarity, accessibility and responsiveness. Perception is not a substitute for technical compliance or evidence quality.
Follow-up records and feedback Whether recommendations are addressed, used or reconsidered. Implementation also depends on audited bodies, legislation and events outside the office.

Triangulate. For example, a policy may require review, a file may show review notes, and monitoring records may show whether reviewers identified recurring problems. Disagreement among these sources is a finding to investigate, not a nuisance to average away.

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Repeat the assessment and compare like with like

A repeat assessment can examine change over time and compare indicator scores where comparison is possible. Repeat the evidence collection using a documented design rather than simply asking whether the office “feels better.”

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Comparison dimension Question to answer before interpreting movement
Scope and audit types Did both assessments cover the same units, years and kinds of audits?
Criteria and standards Were the same professional requirements in force, or did the methodology change?
Indicator-level results Did individual indicators and their narratives move, or only a composite?
Evidence coverage Did monitoring or independent review cover representative work in both periods?
Staff competence and resources Did staffing, turnover, training, specialists, budget or workload change?
Reporting performance Were accuracy, clarity and timeliness measured on comparable populations?
Follow-up and use Is there comparable evidence that recommendations were addressed or used?

Preserve the original evidence and explanation alongside the new result. If the scope, sample, standards or context changed, label the comparison as partial or not directly comparable. A score increase may reflect better controls, a different sample, revised criteria, improved documentation, or more favorable evidence—not necessarily better audit outcomes.

Interpret score movement as a signal, not a verdict

SAI PMF does not establish a universal percentage improvement that every office should expect. The useful question is which specific capabilities changed and whether the evidence supports the explanation.

Observed pattern Reasonable interpretation Next check
Indicator score rises and representative files show stronger work Evidence supports a quality improvement in that area. Check whether the improvement is consistent across audit types and teams.
Policy indicators rise but files do not change Design may have improved without reliable implementation. Test supervision, review notes, monitoring coverage and training.
Files improve but monitoring scores fall Work may be better while the office is becoming more honest or more capable at detecting deficiencies. Examine findings, root causes and remediation rather than treating the fall as purely negative.
Composite score rises after scope narrows The result is not a clean time-series improvement. Recalculate or present only the comparable indicators and disclose the scope change.
Stakeholder satisfaction rises while technical evidence is weak Perception improved, but technical quality remains unestablished. Use file review and independent evidence before claiming quality improvement.

Do not claim that a higher overall score caused better public outcomes. Outcomes are influenced by the audited entity, policy choices, economic conditions, legal powers and other factors outside the office.

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 findings to create a separate, prioritized plan suited to the office’s strategy and resources.

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  1. Group findings by risk. Put deficiencies that could undermine the reliability, independence or legality of audits ahead of cosmetic documentation issues.
  2. Identify root causes. Distinguish unclear methodology, inadequate skills, insufficient time, weak supervision, poor information systems and leadership or governance problems.
  3. Choose a measurable action. Examples include revising a procedure, piloting a review gate, expanding specialist support or changing monitoring coverage.
  4. Assign one accountable owner. A department can support an action, but one named role should be responsible for delivery.
  5. Set a milestone and evidence of completion. A new manual is an output; sampled files showing consistent use are stronger evidence of implementation.
  6. Record dependencies and resources. Note legislative changes, recruitment, training, technology or budget decisions that could delay the action.
  7. Schedule verification. Use monitoring, a targeted file review or a later independent assessment to test whether the change worked.

Prioritization and capacity-development planning are practical uses of an assessment, not a universal indicator set imposed by the framework.

Build monitoring into normal operations

Quality should not be checked only every few years. A repeating cycle can combine routine monitoring with a deeper assessment:

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  • Engagement level: supervisors review planning, evidence, significant judgments and reporting before release.
  • Periodic level: a monitoring team reviews completed files across audit types, tracks findings and performs root-cause analysis.
  • Independent level: an internal unit with sufficient independence, a peer institution or another qualified reviewer challenges the system and selected work.
  • Strategic level: leadership reviews trends, resource constraints, recurring deficiencies and the status of the improvement plan.

The Comptroller and Auditor General of India’s CAG’s Auditing Standards 2017 expresses the monitoring expectation this way: “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 is India-specific standards language, but it illustrates the general principle: monitoring must address relevance, adequacy and operation, not merely whether a policy exists.

A practical repeat-assessment cycle

  1. Set the decision and scope. Approve Terms of Reference covering mandate, audit types, period, criteria, indicators, sampling and team responsibilities.
  2. Map the evidence. Create an evidence register linking each indicator to policies, files, monitoring records, interviews and external sources.
  3. Run the baseline. Assess indicator-level performance, retain supporting documents and write explanations and limitations.
  4. Validate the result. Have a qualified reviewer challenge the scores, sample selection, missing evidence and conclusions.
  5. Publish an improvement plan. Set priorities, owners, milestones, resources and verification methods.
  6. Monitor implementation. Track actions and test whether new controls operate in real audits.
  7. Repeat on a planned cycle. Use the same scope and criteria where possible; if they change, document the change before comparing results.
  8. Report change transparently. Show indicator-level movement, narrative evidence, context, unresolved limitations and the next decisions required.
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Design a useful internal dashboard

A dashboard should support investigation rather than replace the assessment report. Pair leading measures about the system with direct evidence from audit work and carefully qualified outcome measures.

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Dashboard area Possible measure How to use it
Quality policy Required policies approved, current and communicated. Confirm that design is maintained; do not treat approval as implementation.
Competence and resources Training completion, specialist availability, turnover and workload against planned capacity. Explain why performance may vary among teams or periods.
Supervision and review Coverage and timeliness of review, unresolved significant matters and recurring review findings. Test whether controls operate before reports are issued.
File quality Results from representative file reviews against applicable criteria. Use consistent criteria and preserve sample details.
Reporting Accuracy, clarity and delivery timeliness for comparable reports. Separate technical quality from speed when interpreting trade-offs.
Follow-up Recommendation status and evidence of use or corrective action. Report the office’s contribution without assigning it sole responsibility for implementation.

Common measurement mistakes and their fixes

Reducing quality to one composite score

Why it fails: A strong result in one domain can hide a serious weakness in another, and averaging can erase the evidence needed for action.
Fix: Publish indicator-level results, narratives, samples and limitations alongside any overall view.

Changing the sample without disclosure

Why it fails: A later assessment may appear better simply because it examined easier audits or omitted a weak unit.
Fix: Match scope and audit mix where possible; otherwise label the comparison partial and explain the effect.

Checking manuals instead of behavior

Why it fails: A complete policy can coexist with incomplete working papers, weak supervision or ineffective monitoring.
Fix: Trace each important control from policy to records to completed files.

Using stakeholder satisfaction as technical proof

Why it fails: A clear or popular report can still lack sufficient evidence, and a rigorous report can be unpopular.
Fix: Use surveys and interviews as contextual evidence, not as a replacement for file and standards-based review.

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Claiming causation from a score increase

Why it fails: Standards, leadership, staffing, scope and external conditions may have changed at the same time.
Fix: State what changed, what evidence supports the change, and what remains uncertain.

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Ignoring negative findings because the trend is upward

Why it fails: A rising average can conceal a high-risk deficiency in independence, evidence or reporting.
Fix: Escalate material weaknesses regardless of the direction of the aggregate trend.

Treating SAI PMF as mandatory everywhere

Why it fails: SAI PMF is voluntary and specific to SAIs; not every indicator fits every mandate.
Fix: Confirm the legal mandate, select applicable indicators and clearly label any adapted approach.

What a credible public report should contain

A reader should be able to understand the result and judge its limits without access to confidential files. Include:

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  • the office, mandate, period and audit types assessed;
  • the framework and criteria used, including any adaptation;
  • the team, independence safeguards and quality-assurance process;
  • indicator-level results with concise evidence explanations;
  • sample design, coverage and exclusions;
  • changes from the previous assessment and their effect on comparability;
  • material strengths, weaknesses and unresolved evidence gaps;
  • the improvement priorities, owners and milestones; and
  • the date or condition for the next review.

This format makes the assessment useful to leaders, legislatures, audited bodies, professional peers and the public while avoiding the false precision of a single headline score.

Adapting the method to a local audit office

If the office is not an SAI, retain the method but replace the framework references with the standards that apply to its work. Define quality in terms of the office’s authority, audit objectives and reporting obligations. Keep the same safeguards: an explicit baseline, representative evidence, independent challenge, documented scope, repeatable criteria and transparent interpretation.

The result should answer a narrow, defensible question—for example, whether planning and review improved in a defined class of audits during a defined period—rather than claiming that the entire institution or every public outcome improved. That precision makes the finding more actionable and easier to verify at the next assessment.

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