The applicability of performance audits in the local banks

Abstract

Struggling to achieve the new realities of business competition is not easy, as the business sphere is constantly changing, and thus, conservatism is no longer the order of the day. Companies are becoming more dynamic and are moreover competing to attract the ever-demanding customers towards their business. To compete in this ever-changing environment, companies have to be more efficient in providing value added services. The main objective of this study is to provide an insight into the applicability of performance audits in the local banks. Performance audits were proposed as a management tool, which looks at a company’s performance by examining whether the company is spending money wisely and whether value is received for the money spent. Furthermore, this audit evaluates whether managers are being effective in making the best use of the resources entrusted to them. Local banks are ready to introduce performance audits into their system, as they are aware that this will lead them to a better competitive position in the market, with which they will be able to provide added value and satisfaction to their customers.