What is a Value for Money Audit? 

A Value for Money Audit is a financial analysis undertaking to determine whether resources (financial, human, or physical) are being used in an economic, efficient and effective way.

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.”