Definition of Performance Audit

It is an audit conducted on a resource administrator by an outside bookkeeping company to confirm that the performance numbers shown to the public on ads signify the actual total results of the company’s client√®le.

The CFA Institution has established performance demonstration recommendations, called international investment performance requirements that must be managed by resource supervisors.
There are many experiences about money supervisors displaying the performance of only one or two specific accounts out of thousands or more because the numbers looked much better than the rest. A performance audit allows for the confirmation of the performance numbers revealed by the company to ensure that they are an exact representation of the actual profits produced by the company. Performance Audit relates to a separate study of a program, function, function or the management systems and procedures of a government or non-profit enterprise to evaluate whether the enterprise is accomplishing economic system, efficiency and performance in the employment of available resources. The evaluation is purpose and methodical, generally using organized and expertly implemented strategies.

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