An independent, objective assurance activity designed to add value and improve an organization’s operations.
(OECD, 2002, p. 17)
The audit function can help an organization accomplish its objectives by bringing a systematic, disciplined approach to assess and improve the effectiveness of risk management, control and governance processes. A distinction is made between regularity (financial) auditing, which focuses on compliance with applicable statutes and regulations; and performance auditing, which is concerned with relevance, economy, efficiency and effectiveness. Internal auditing provides an assessment of internal controls undertaken by a unit reporting to management while external auditing is conducted by an independent organization.
Organisation for Economic Co-operation and Development (OECD) (2002). Glossary of Key Terms in Evaluation and Results Based Management. Paris. Retrieved on June 25, 2008, from http://www.oecd.org/dataoecd/29/21/2754804.pdf