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 Members-only Webinar: Value for Money Auditing

12/11/2018 1:00 PM
12/11/2018 2:00 PM
Via ON24 |  

All times indicated are ET.  1.0 CPE credits available for live attendance.

VFM auditing is concerned about assessing whether public funds and resources are being used economically and efficiently and whether functions, programs, activities, and processes are effective. Although developed in the public sector, the concept of VFM is finding increasing interest and application in the private sector as well. Known as performance auditing in the United States where it was introduced by the General Accounting Office, VFM can add considerable value to an organization if properly carried out.

In today’s organization where there is an emphasis on getting maximum output from resources expended, organizational management is emphasizing on an evaluation of all functions to ensure achievement of their respective objectives where there is no wastage or duplication of effort and where minimum and lowest cost resources are used without compromising the quality of output to collectively achieve maximum returns.

The VFM auditor typically asks: Are the right operations being performed to achieve the goals and objectives of the unit (effectiveness) in the right way (efficiency) at an appropriate cost (economical use of resources or economy)? Answering such questions involves the assessment of an appropriate range of performance measurement criteria. E.g., if Procurement is not acquiring the goods and services at the right prices in the right amount and on schedule, then it is not effective since it is not achieving its goals and objectives.

Learning Objectives:

  • Evolution of value-for-money auditing (VFMA).
  • Nature and philosophy of value-for-money auditing.
  • Understanding and applying the concepts of economy, efficiency, and effectiveness – the key parameters of a VFMA.
  • Value-for-money auditing standards (IPPF; INTOSAI; CAS; IAS).
  • Benefits of VFM auditing,
  • A general approach to a VFM audit
  • Audit planning - for a VFMA
  • Audit fieldwork - VFM auditing techniques in economy, efficiency, and effectiveness
  • Sample VFM audit findings
  • VFM audit reporting
  • Key Performance Indicators (KPIs) in a VFM audit
  • VFM best practices
  • Emerging practices in VFMA
  • Skill-set requirements of a high-powered value-for-money auditor
  • VFMA Resources


Lal BalkaranLal Balkaran, MBA, FCPA, FCGA, FCMA, CGMA, CIA
Consultant, Toronto, Ontario, Canada

Lal Balkaran is a Certified Internal Auditor, Chartered Global Management Accountant, Fellow Chartered Professional Accountant, Fellow Certified General Accountant and Fellow of the Chartered Institute of Management Accountants in the UK. He also holds an MBA from the Edinburgh Business School. He has had almost three decades of a wide range of internal audit experience that encompasses risk-based, operational, financial, information technology, fraud, and special audits obtained in a wide range of industries both in the private and public sectors including six years with the Big Four. Lal is a widely published author around the globe and is perceived as a leading member of the internal audit profession.

Mr. Balkaran wrote seven reference books on business and related areas including the world’s first dictionary on auditing published by Lexis-Nexis Canada, a dictionary of risk, governance, and control and an international directory on accounting and business certifications published by Wiley. The risk dictionary has a Foreword by Andrew Chambers, Professor Emeritus, Cass Business School, London and a Past IIA-UK President. Lal is also a prolific writer on his native Guyana and has published another 6 books and four documentaries on the country. Also, Mr. Balkaran has had articles published widely across the globe including ten in the prestigious Internal Auditor magazine of the IIA. In addition, he has done several internal audit and related workshops, seminars, and working luncheons in North America and the Caribbean. He contributed a chapter to Professor Jeff Ridley’s book Cutting Edge Internal Auditing that was published by Wiley in the UK in 2007.

Mr. Balkaran has been a member of the Institute of Internal Auditors (IIA) for over 25 years and is a Past President and honourary member of the IIA-Toronto. He has been active with the IIA Toronto since his arrival in Toronto in 1987. He was a long-term member of the Committee of Research and Education Advisors of IIA Global and is a current member of the Internal Auditor and EDPACS Editorial Advisory Boards. He was a leading member of the Internal Audit Advisory Board set up by the Treasury Board
Secretariat in Ottawa in 2005 under the Paul Martin Government to establish internal audit functions in federal agencies of the Government of Canada. He also started an IIA Chapter in his native Guyana in 2000.

Lal is the recipient of two IIA-Canada Awards: the 2010 Arthur J. Child’s Distinguished Service in Canada Award for his dedication to the internal audit profession and the 2012 Contribution to the Profession of Internal Auditing Award which recognizes individuals who have contributed immensely to the profession through research, education, publications, and other thought-leading pursuits. His article on value-for money auditing, titled Focus on the Three E’s, that was published in the October 2017 Internal Auditor magazine, received the Ted Keys Honorable Mention for its outstanding quality, clear presentation of ideas, practicality, and relevance to the continuing practice of internal auditing.