An audit critically examines and assesses an EMB’s activities, strictly within the parameters of its stated strategic objectives. Regular auditing is an essential means of ensuring that an EMB is accountable for its operations. As noted above, auditing is increasingly used for wider purposes than testing financial compliance; audits also assess the appropriateness and effectiveness of publicly funded organizations’ strategies, operational methodologies, and performance in delivering services to the public.
Just as an EMB has performance and financial accountability, an EMB audit can be performance based (focusing on the economy, efficiency and effectiveness of its activities) or finance based (examining an EMB’s accounting records against accounting standards to assess the efficiency and probity of its handling of funds). An audit may also be a combination of performance and finance based, and may be broadly based (examining overall EMB performance or transactions) or limited to a particular activity or system operated by the EMB.
Regardless of the type of audit, it is usually conducted in accordance with professional auditing standards. Audit reports, which are usually made public, would either certify this accordance 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 to achieve the EMB’s 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 finalized and publicly issued.
