The Role of Performance Audits in Improving Efficiency of Government Spending and Resource Allocation

Posted: Feb 13, 2017

• Zoe Collins
• Cameron Hill
• Sienna Ford

Abstract

Performance auditing represents a critical mechanism for ensuring that government expenditures achieve their intended outcomes and deliver maximum public value. Traditional approaches to performance auditing have predominantly emphasized compliance verification and financial accuracy, often operating within siloed departmental frameworks that fail to capture the complex interdependencies within government operations. This research introduces a paradigm shift in performance auditing methodology by integrating computational social science techniques with established audit practices, creating a novel framework for optimizing government resource allocation through predictive simulation and systemic analysis. The contemporary landscape of government spending faces unprecedented challenges, including increasing public demands, limited resources, and complex societal problems that transcend traditional departmental boundaries. Conventional performance audits, while valuable for ensuring accountability and preventing fraud, often lack the analytical depth to identify systemic inefficiencies and optimize resource allocation across interconnected government functions. This limitation becomes particularly evident when examining cross-departmental initiatives where resource allocation decisions in one sector create cascading effects throughout the entire governmental ecosystem.