Performance audits analyze programs to determine effectiveness and efficiency, often used for government accountability. Standards must be in place prior to the audit, and auditors should be unbiased. The audit focuses on determining program effectiveness and efficiency to save money and highlight flaws.
A performance audit is a tool used to analyze a program to determine what is working and what is not working. It can produce positive changes, highlight flaws and save money. This tool is often promoted or used for government accountability. For best results, it should be performed by auditors not associated with the organization or program under review.
The fact that a program is developed and implemented does not necessarily mean that its objectives are achieved or that the achievement is achieved in the most effective way possible. A performance audit is a tool used to assess and help determine the status of a specific program. To run properly, there must be standards in place prior to the performance audit. The standards, which serve as measures, can be derived from various sources, such as government or program developers.
While individuals employed by the organization or who are actively involved with the program in question can participate in the development of standards, it is generally not advisable to involve them in the actual performance audit process. The individuals performing the audit, commonly referred to as auditors, must be able to act independently and without bias. Otherwise, the integrity and effectiveness of performance auditing is likely to be compromised.
There are at least two factors commonly analyzed when a performance audit is carried out. To begin with, determining whether or not a program is effective is usually an important area of concentration. A program that is not audited can be in operation for a long period of time without anyone having a measure of whether its objectives are being met or whether progress is being made in that direction. In some cases, there may be indications that a program is unsuccessful, but the reasons may be undetermined.
Efficiency is often another important focus of a performance audit. If a program is ineffective, it will almost certainly be deemed inefficient because resources are being used without results. A program may be fulfilling its purpose, however, but it may be doing so at unnecessary cost. It is often said that one benefit of a performance audit is that it results in savings. This is because the audit can help determine if there is waste and, if so, how it is occurring.
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