An audit critically examines and assesses the EMB’s activities, strictly within the parameters of the EMB’s stated strategic objectives. Regular auditing is an essential means of ensuring that an EMB is accountable for its operations. Concepts of auditing publicly funded organisations now have a focus beyond the purely financial, looking also at the appropriateness and effectiveness of these organisations’ strategies, operational methodologies, and performance in delivering services to the public.

Just as an EMB has performance and financial accountabilities, so too can an audit of an EMB fall into the basic categories of:

1. performance audit – focusing on the economy, efficiency, and effectiveness of its activities – or
2. financial audit – focusing on examining the EMB’s accounting records against accounting standards, to assess the efficiency and probity of the EMB in handling its funds.

An audit may neatly fall into one or other of the above categories or be some combination of both. It may be broadly based – examining overall EMB performance or transactions – or be limited to a particular activity, or a system operated by the EMB. Audit reports are usually made public.

No matter what the type of audit, it is usually conducted in accordance with professional auditing standards. Audit reports would either certify this or explain why such standards could not be applied, and justify the standards or methodology used. The audit investigation and report may identify good and bad practices found; assess operational or financial management controls; identify non-compliance with the law or policies, and breaches of financial probity or integrity in operations; note improvements made since earlier audits; and assess the appropriateness of methods and systems used or the levels of service provided in achieving the EMBs objectives.

A professional audit report is always objective, factual, accurate, complete, and fair, and emphasizes the EMB’s positive accomplishments as well as identifying any failings. It is good practice for auditors to discuss their draft findings and recommendations with the EMB, for the EMB to be given sufficient time to respond to these, and for the EMB’s responses to be carefully considered before the audit report is finalised and publicly issued.