Financial audits focus on determining whether an entity’s financial statements accurately present its financial position and cash flows, in accordance with applicable accounting standards (such as IPSAS). The auditor reviews transactions, verifies asset values, and confirms that the numbers on the balance sheet match real-world financial records.

Compliance audits evaluate whether a government department operated in accordance with the specific laws, budget appropriations, internal regulations, and procurement rules governing them. The auditor checks for legal violations, such as a ministry spending money on an unapproved program or bypassing a mandatory procurement threshold.

Value-for-Money (VfM) audits assess the economy, efficiency, and effectiveness of public expenditures. Instead of asking if the books are accurate or if the law was followed, a VfM audit asks if the taxpayer got the best possible outcome for their money:

[ Economy Audit ] ------> Did the ministry buy inputs at the lowest possible cost?
[ Efficiency Audit ] ---> Did the ministry maximize its output per unit of input?
[ Effectiveness Audit ] -> Did the program achieve its intended social outcome