What is the difference between Audit and Evaluation?

Both audits and evaluations are carried out to ensure that there are no financial abnormalities in a financial institution. Evaluation can be performed in any organization. Audit and assessment are two essential terms for any organization and refers to means of assessing products and performance.

An audit is the assessment of a person, organization, or a product to determine it’s authenticity and validity or to verify a set of predefined processes. Evaluation is about understanding a process and then making suitable changes in the process to achieve an improved result.