Types of audits
In the international area, performance audits and financial audits are differentiated. In practice, however, there can be crossover between the two types. (cf. International Standards of Supreme Audit Institutions, ISSAI 100 no. 39ff)
According to the INTOSAI Financial Audit Guidelines (ISSAI 100 no. 40 and ISSAI 3000, no. 1.1), performance audit is concerned with the audit of economy, efficiency and effectiveness of public projects, programmes or organisations, taking into account requirements for economy and with the aim of achieving improvements.
They also include auditing the
(a) economy of administrative activities in accordance with sound administrative principles and practices and management policies;
(b) efficiency of the utilisation of human, financial and other resources, including examination of information systems, performance measures and monitoring arrangements, and porcedures followed by audited entities for remedying identified deficiencies; and
(c) effectiveness of performance in relation to the acievements of the objectives of the audited entity and auditing the actual impact of activities compared with their intended impact.
Financial audits are solely concerned with auditing financial and accounting matters. According to the relevant international guidelines (cf. ISSAI 100 TZ 39ff), financial audits contain
(a) attestation of financial accountability of accountable entities, involving examination and evaluation of financial records and expression of opinions on financial statements;
(b) attestation of financial accountability of the government administration as a whole;
(c) audit of financial systems and transactions, including an evaluation of compliance with applicable statutes and regulations;
(d) audit of internal contral and internal audit functions;
(e) audit of the probity and propriety of administrative decisions taken within the audited entity; and
(f) reporting of any other matters arising from or relating to the audit that the SAI considers should be disclosed.