performance (noun, per-for-mance, \ pərˈfɔːrməns \) audit (noun, au-dit,\ ˈɒːdɪt \)
Definition: is a process of studying, monitoring, and evaluating the functions and the internal operations of a business or a certain company in order to determine whether it is capable of reaching its objectives. Performance audits are typically implemented by an outside firm (its managing representative) in order to receive the most realistic and unbiased data. Performance audits serve to evaluate the effects of the business’s internal processes and to suggest improvements towards the efficiency of these processes and operations.
In a Sentence:
- If you want to estimate how effective and efficient the processes within your firm are, you should probably hire someone to conduct the performance audit.
- The last performance audit showed the main weaknesses in our business functions, so now we ought to work on them.
- We have already implemented the improvements suggested because of the last month’s performance audit.
Synonyms and related words: management audit, compliance audit, financial evaluation, business operations, performance analysis
