(a) A value for money audit focuses on whether the best combination of services has been obtained for the lowest level of resources.
In performing a value for money audit there are three areas which an auditor will commonly focus on being economy, efficiency and effectiveness, and these are known as the three Es.
Economy – Keeping the cost of resources used to a minimum.
Efficiency – The relationship between the output from goods and services and the resources used to produce them. Effectiveness – How well the organisation’s objectives have been achieved.
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