A performance audit is a tool for businesses to measure internal workings, programs and functions for proficiency. It analyzes and evaluates policies, procedures and other internal processes for effectiveness. Utilize a performance audit to gauge whether or not a business is meeting its objectives and carrying out those objectives in the most efficient way.

Selection Process

Identify which areas of performance to review. These may be areas that have apparent or obvious gaps in efficiency, like programs struggling to fulfill organizational objectives. Alternately, a business can begin auditing any area when first initiating a performance auditing program. In addition, determine who will be conducting the audit. This can be either current available staff or a contracted independent entity.

Outline the Schedule

Plan how to conduct the performance audit by facilitating a thorough and timely analysis against a set of established criteria. This calls for a detailed outline of what to collect for consideration and how to review the selection. Include standards for determining scales of performance as well as milestones to measure progress along the way. The schedule contains meticulous timelines for examination and conclusion of the audit in order to navigate through the process more smoothly.

Examine the Data

Review program data, pertinent policies and procedures and other relevant documentation during the examination phase. Interview staff and supervisors for input on program systems and activities, getting their opinions on their effectiveness and inefficiencies. Examine any other significant information available. Collect and scrutinize all applicable records to obtain a summary of the workings of the program examined.

Report Findings

Report the conclusions drawn from the examination phase to highlight trouble spots that require attention. Submitting a preliminary report of findings previews the more in-depth evaluation given later in the final report. A statement of the results of the audit includes areas of deficiency that the audit team found lacking during its analysis. It also includes recommendations to revamp problem areas for better efficiency and effectiveness in the future.


Conduct a follow-up procedure to confirm the clear understanding of audit results. Assessing the adherence to recommendations and determine if those recommendations led to alterations of operations and procedures. Self-reporting of staff and supervisors of the affected area can validate findings, or the audit team can make a return visit to assess the situation depending on the circumstances and the seriousness of the deficiencies. Following up regarding problem areas will provide subsequent feedback to benefit audit outcomes.