Regulation 45 — REGULATIONS_AUDIT

45. Broad framework of Performance Audit (1) Performance audit is carried out in accordance with the Auditing Standards, Performance auditing guidelines and other relevant orders issued by the Comptroller and Auditor General.

(2) Performance audit assesses:

(a) Economy – The principle of economy means minimising the costs of resources. The resources used should be available in due time, in and of appropriate quantity and quality and at the best price.

(b) Efficiency – The principle of efficiency means getting the most from the available resources. It is concerned with the relationship between resources employed and outputs delivered in terms of quantity, quality and timing.

(c) Effectiveness – The principle of effectiveness concerns meeting the objectives set and achieving the intended results, especially in terms of outputs and outcomes. For example, expenditure on health schemes/ programmes such as NHM should lead to the intended outputs of having hospitals/ CHC etc, having the desired number of hospital beds etc; it should also have the outcomes as intended and/or stated such as delivery of effective health schemes.

(3) Performance Audit, therefore, is concerned with the audit of economy, efficiency and effectiveness in receipt and application of public funds. Comptroller and Auditor General’s function to carry out examinations into the efficiency and effectiveness with which the Government uses it resources is inbuilt in the Comptroller and Auditor General’s DPC Act.

(4) In keeping with Regulation 5(3), Performance Audit focuses on inputs, processes, including planning and preparedness, (for example disaster preparedness etc), outputs, outcomes (for example learning outcomes in school education) and results. The analyses in Performance Audit is distinct from, and goes beyond, compliance issues, and seeks to provide new information, analysis or insights on the actual benefit of the activity undertaken by the entity. Where appropriate, the impact of the regulatory, institutional or operational framework on the performance of the audited entity or subject matter of Performance Audit should also be taken into account as part of Performance Audit.