Value for Money Audit
Value for Money Audit is the type of audit to assess performance as in terms of getting good value from the money that an entity spends. Value for money is obtained by accessing the 3ES (i.e., economy, efficiency, effectiveness).                 (2.5 marks)

Best Value Audit
The fundamental concept of best value is continuous improvement. There is some evidence that some private sector organisations now use the concept of best value to measure improvement. This occurs where organisations attempt to achieve continuous improvement by focusing on the 4Cs (i.e., challenge, compare, consult, and complete).                       (2.5 marks)

VFM focuses on the best combination of services for the lowest level of resources. The purpose of a VFM audit is to examine the economy, efficiency and effectiveness of the activity or process in question.

• Economy – Attaining the appropriate quantity and quality of physical human and financial resources (inputs) at lowest cost.
• Efficiency – The relationship between goods or services produced (outputs) and the resources used to produce them.
• Effectiveness – Concerned with how well an activity is achieving its policy objectives or other intended effects.