Value for Money Audit

Knowledge Center

Description of Value for Money Audit. Explanation.

All about Value for Money Audit

Join now. Completely free.

All about Value for Money Audit. Join now. Completely free.

Definition Value for Money Audit. Description.

A Value for Money Audit is a financial analysis looking into whether resources are used in an economic, efficient and effective way..

There is no universally accepted definition of value for money audit. The Canadian Comprehensive Auditing Foundation defines Value for Money Auditing as:
“A comprehensive audit is an examination that provides an objective and constructive assessment of the extent to which:

Financial, human and physical resources are managed with due regard to economy, efficiency and effectiveness; and
Accountability relationships are served.”

The United States General Accounting Office Auditing Standard defines Value for Money Auditing as:

“Performance audits include economy and efficiency and program audits.

(a) Economy and efficiency audits include determining;
i. whether the entity is acquiring, protecting and using its resources (such as personnel, property and space) economically and efficiently,
ii. the causes of inefficiencies or uneconomical practices, and
iii. Whether the entity has complied with laws and regulations concerning matters of economy and efficiency.
(b) Program audits include determining;
i. The extent to which the desired results or benefits established by the legislature or other authorizing body are being achieved,
ii. The effectiveness of the organization, programs, activities or function, and
iii. Whether the entity has complied with laws and regulations applicable to the program.”

Also known as Comprehensive Auditing. Abbreviated as VFM auditing.