Performance audits can be part of the routine monitoring of the electoral process by the EMB itself or an official oversight agency, as well as an investigative tool in suspicious cases or cases involving malfeasance or corruption. Audits can identify irregularities as an internal quality control mechanism of the EMB. They can also help ensure that electoral administrators, political parties and organizations receiving public funds comply with the law and are accountable for their actions. Audits increase transparency of the electoral process by making records and audit reports available to the public. They may also facilitate the decision-making process for those responsible for taking corrective measures.

The principle underlying audits is that the persons and institutions entrusted with handling public resources must be held accountable for using those resources efficiently and economically.[1] They must also comply with the applicable public funding laws and regulations.

Public officials and public spending managers must establish and maintain effective controls to ensure that resources are safeguarded; laws and regulations are followed; and accurate, reliable data are obtained, maintained and disclosed. These persons must also be accountable to the public and to other levels and branches of government for their use of public resources, and must submit reports at the required time.

The type of audit depends on its objectives. It can be a performance audit, assessing he effectiveness of managers, a financial audit, examining accounting records to determine how funds were utilized, or it can be a combination of the two, or look solely at internal controls.

Depending on legal restrictions or ethical considerations, audit reports may be made public.

Performance Audits

For election administration, a performance audit is an objective and systematic examination with the purpose of providing an independent assessment of the performance of the electoral management or policy-making bodies, the agency that regulates campaign financing, and/or recipients of public financing, such as candidates and political parties.

Performance audits provide information on how the electoral process functions, identify weaknesses and areas of non-compliance, and make recommendations for improvement. The facts uncovered by an audit may require electoral administrators to take corrective measures and make the process more efficient.

Performance audits may also check for efficiency and economical use of resources. The aim is to determine whether the electoral management body and other electoral agencies acquire, protect and use their resources (e.g. personnel, property, space) effectively and efficiently. A performance audit is a powerful tool for combating mismanagement and possible corruption.

Financial Audits

Economic corruption can become a major cause of integrity problems for an electoral management body, which usually has a large permanent staff, hires thousands of temporary workers, and procures large quantities of electoral equipment and materials. Lucrative contracts may attract offers of kickbacks or provide opportunities for misappropriation of funds. Financial audits, especially those performed on a regular basis, can help detect and deter economic corruption and financial malfeasance.

Financial audits determine whether reports prepared by the institution or candidate accurately present the financial position, and whether the accounting is performed in conformity with generally accepted accounting principles.  Financial audits examine financial statements and records, and banking information. They refer to internal controls to check compliance with regulations governing procurement, bidding, accounting, and reporting on grants and contracts.

Objective and Accurate Audit Reports

Audits should be performed objectively and without interference by other agencies or persons. The reports must be accurate and fair, and must include sufficient information to help the organization being audited—as well as oversight agencies and policy makers—understand the situation and determine corrective actions to be taken.

Audits must be carefully documented. An audit report usually describes the objectives and scope of the audit, and the methodology used. It includes findings and recommendations for correcting problems and improving operations. It may also contain recommendations on how to improve administrative controls and enforcement. Supporting documentation is usually attached and available for public inspection. Some systems allow audit reports to be used as evidence in criminal cases, while others do not.