WHAT IS VALUE ADDED AUDITING? 
September 11 and Enron collapse defined and catapulted value added auditing into a strategic and tactical necessity for ALL governmental agencies and private companies.

Value added auditing includes:

• Risk audits
• Internal audits
• Quality audits
• Effectiveness/efficiency/economy audits
• Process audits
• Systems audits
• Compliance audits
• Internal control assessments
• FDA/DOE/FAA assessments

INSTITUTE OF INTERNAL AUDITING DEFINITION
Value added auditing involves: The Institute of Internal Auditing (IIA) developed their definition of ‘auditing’ which introduces various elements of value:

“Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.  It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.” (About Internal Auditing,” IIA Web Site, 2000.)

We can infer a number of value adding best practices from the above definition:  Value added audits aim to:

• Provide independent and objective operational analysis
• Examine every function, process, and activity of the organizational and external value chain
• Helps an organization achieve its business strategies and objectives
• Follows a systematic and disciplined approach in its assessment
• Evaluates and improves the effectiveness of risk management, control, and governance processes