Advantages of Efficiency Audit
Auditing efficiency enables the management/owner to know whether the departments and agencies manage resources with due regard to efficiency. It can also directly or indirectly help departments and agencies to identify opportunities to provide more or better services at the same or lower cost. More specifically, such audits can:
– help managers and staff to be more sensitive to their obligation of due regard to efficiency;
– underline the importance of measuring efficiency and of using that information for managing operations and providing accountability;
– identify means for improving efficiency, even in operations where efficiency is difficult to measure;
– demonstrate the scope for lowering the cost of delivering programs without reducing the quantity or quality of outputs or the level of service;
– increase the quantity or improve the quality of outputs and level of service without increasing spending; and
– identify needed improvements in existing controls, operational systems, and work processes for better use of resources.