Question 2b

The Rothko University, a public sector entity, is a small university with approximately 2,000 students, which was established 10 years ago and specialises in vocational study programmes leading to the award of degrees in business, accountancy, finance, law and marketing. The highest performing students achieve a distinction on completing their degree programme, indicating excellence in the knowledge and understanding of their subject. Students pay tuition fees of $10,000 per year, and the degree programme is typically three years long.

The audit work in respect of the year ended 31 July 2015 is almost complete, but the audit senior has not yet completed the audit work in respect of performance information which is being published with the annual financial statements for the first time this year. It is a requirement in the jurisdiction in which the Rothko University is located that the performance information is audited as part of the external audit.

Details on the performance information are given below.

Performance area Performance measure 2015 result
Graduation rate % of students who complete their degree programme 85%
Academic performance % of students achieving a distinction 20%
Employability % of students who on graduation obtain graduate level employment 65%
Course satisfaction % of students who rate their university experience as excellent or very good 70%

Required:
(i) Discuss the relevance and measurability of the reported performance information; and

(ii) Recommend the examination procedures to be used in auditing the performance information.

Note: The total marks will be split equally between each part. (10 marks)