What do you mean by 'Efficiency Audit'? State the objective of efficiency audit.

Meaning & Objectives of Efficiency Audit Meaning of Efficiency Audit: Efficiency is a relative concept. It is measured by comparing achieved productivity with a desired norm, target, or standard. Output quantity and quality achieved and the level of service provided are also compared to targets or standards to determine to what extent they may have caused changes in efficiency. Efficiency is improved when more outputs of a given quality are produced with the same or fewer resource inputs, or when the same amount of output is produced with fewer resources. Efficiency audit refers to comparing the actual results with the desired/projected results. It is directed towards the measurement of whether plans have been effectively executed. It is concerned with the utilisation of the resources in economic and most remunerative manner to achieve the objectives of the concern. It comprises of studying the plans of organisation, comparing actual performance with plans and investigating the reasons for variances to take remedial action. Objectives of Efficiency Audit The objectives of auditing efficiency can include assessing one or more of the following: the level of efficiency achieved by an organization or operation in relation to reasonable standards; the adequacy and reliability of systems or procedures used to measure and report efficiency; an organization's efforts to explore and exploit opportunities to improve efficiency; and whether the management processes and information systems, operational systems, and practices of an organization help to achieve efficiency.