There are two ways of looking at this question. The first is to consider the results: does the audit result in effective, practical solutions which are supported by management and based on complete and accurate information and improve the organisation’s risk management, control and governance processes? The second is to look at the processes: has the audit been carried out in a way which makes cost-effective use of the organisation’s resources - both internal audit’s and the client’s - and adds value to the client’s business?

In terms of processes, effective audits must meet the following criteria:

• make efficient and effective use of the organisation’s physical, financial and human resources
• gather and make best use of available information
• balance operational constraints with the requirement to deliver rigorous and valid findings
• be delivered on time and within agreed budget
• provide relevant information and advice to management, where appropriate, outside the terms of the assignment
• enhance the perceived value of the internal audit function within the organisation.