The transformation of the public service has marked a new wave of performance and public financial management. Government institutions are required to subscribe to statutory performance measures including efficiency, effectiveness, economy (3Es) and professional ethics thus ensuring an outcome-based governance approach to service delivery. Central to this mandate, amongst other things, performance auditing is pivotal for state institutions in general and for municipalities in particular. Performance or value-for-money audit is a process carried out by the management of the institution to assess the systems, or the lack thereof, to ensure that resources have been acquired economically and are utilised efficiently and effectively, and to report thereon to management. If appropriate also to report, to the legislative body concerned. In this regard, the paper first explores the legislative framework regulating the audit proces