Performance audit is one of the Types of audit adopted by the Supreme Audit Institutions in evaluating the efficiency, effectiveness and economic performance of public sector units to ensure the extent to which the specified objectives are achieved with the best use of available resources, thus enhancing the principles of transparency and accountability in governmental administration and the good governance within the public sector. In light of the increasing demands to improve the performance of public institutions and to ensure the maximum added value from public funds, performance audit has become an urgent necessity so that the audit process would not be limited to the traditional financial examination, but extends to the results, analysis and the extent to which the strategic objectives of the auditees are achieved. In this regard, the performance audit plays a pivotal role in enhancing accountability and transparency within the public sector units. This role can be summarised in several main axes, which are:

• Improving the efficiency and effectiveness of the use of public resources.

Performance audit helps assess the extent to which public sector units achieve their objectives at the lowest possible cost and with the highest quality, which leads to the optimal use of resources.

• Promote accountability and transparency.

By examining the performance of government institutions and publishing audit results reports, the principle of accountability is reinforced, as the auditees are required to provide justifications for their use of resources.

• Exposing shortcomings and corruption.

Performance audit helps identify shortcomings in administrative and financial performance, which contributes to reducing corruption and mismanagement within the public sector..

• Motivate continuous improvement.

By providing corrective recommendations based on audit findings, government entities are pushed towards adopting more efficient and effective management practices.

• Guiding decision makers.

Performance audits provide reliable reports that contribute to improving the government decision-making process based on accurate and objective data.

• Enhancing citizens' confidence.

When effective performance audits are implemented and their results are published, this enhances citizens’ confidence in the government’s ability to manage public resources efficiently and with integrity.

Despite the pivotal role of performance audit as an effective tool for promoting good governance within the public sector and enhancing transparency and accountability in governmental administration; yet some Supreme Audit Institutions encountered a number of challenges when applying performance audit, in a way that limits its impact, the most prominent of which are:

• Lack of specialised skills: Performance audit requires multiple expertise, including financial and administrative, which may not always be available in some auditors, which may pose a challenge to some audit institutions.
• Limited adoption of recommendations: Despite the submission of performance audit reports, the implementation of recommendations faces some obstacles, such as complex administrative procedures. or resistance to change by the auditees.
• Use of unsophisticated techniques: Some Supreme Audit Institutions rely on traditional methods, which leads to slow analysis processes and difficulty in detecting shortcomings in governmental performance, which leads to reducing audit efficiency in light of digital transformations.
• Lack of coordination between the Supreme Audit Institutions and the auditees: The lack of effective communication channels between the Supreme Audit Institutions and the auditees leads to poor utilisation of audit results and failure to achieve the desired impact.
• Limited transparency and poor dissemination of audit results: In some cases, performance audit results are not clearly disseminated to citizens and stakeholders, reducing their impact in enhancing public accountability.
• Lack of compatibility of legislations with modern developments: Some legal frameworks are outdated and not in line with INTOSAI standards for performance audit, which limits the ability of SAIs to conduct comprehensive and effective audits.

The matter becomes more difficult with the development of information technology and the ensuing digital transformation and use of artificial intelligence in a way that requires innovative and sustainable solutions to enhance its effectiveness; and to address these challenges and enhance the role of performance audit, the following measures can be taken:

• Digital transformation and the use of artificial intelligence:

• Employing intelligent systems to analyse big data and detect ineffective patterns in governmental performance.
• Developing electronic platforms to facilitate the collection and analysis of information and reports more accurately and quickly.

• Enhancing human resources efficiency:

• Providing advanced training programs for auditors to enhance their skills in areas such as performance analysis and risk assessment.
• Encourage the exchange of experiences amongst Supreme Audit Institutions to benefit from best practices.

• Strengthening mechanisms for following up the implementation of recommendations:

• Developing legal mechanisms that oblige government entities to implement audit recommendations within a specific time frame.
• Establishing audit units within government institutions to follow up on the implementation of recommendations.
• Providing incentives to auditees that achieve performance improvement based on audit reports.

• Strengthening coordination between Supreme Audit Institutions and governmental institutions:

• Establishing joint committees between Supreme Audit Institutions and the auditees to ensure effective communication and continuous exchange of information.
• Adopting a proactive audit approach by providing regulatory advice to government entities before problems occur.

• Strengthening independence and governance:

• Granting the Supreme Audit Institutions broader powers to follow up on the implementation of performance audit recommendations and ensure government entities' compliance with them.
• Establishing legal mechanisms to ensure effective accountability and implementation of recommendations.

• Expanding the scope of performance audit to include sustainable development:

• Focus on measuring the impact of government policies on economic, social and environmental development, in line with the UN Sustainable Development Goals (SDGs).

• Promote transparency and communication with the community:

• Publishing performance audit results in simplified ways to enhance citizens’ awareness and participation in the oversight on governmental performance.
• Involving civil society and the private sector in the evaluation process to ensure a more comprehensive and efficient perspective.
• Publishing performance audit reports in simplified ways that are easy for citizens to understand, and involving them in auditing governmental performance and enhances the role of social surveillance.
• Holding seminars and awareness campaigns to inform citizens of the role of performance audit in improving public services.

• Updating legislation and optimising the legal environment

• Reviewing laws and legislation related to performance audit to ensure their compliance with modern international standards.
• Granting Supreme Audit Institutions more powers to ensure they are able to conduct effective and impactful audit.

And finally, the continuous development of performance audit is an imperative necessity to keep pace with the rapid changes in public administration. By employing modern technology, developing human capabilities, and enhancing governance, the Supreme Audit Institution can achieve more impactful results, contributing to enhanced Public Sector Accountability and improving the quality of government services and enhancing citizens’ confidence in state institutions.