What determines Audit Effectiveness ?

The effectiveness of the audit would lie not only in its ability to perform these statutory functions effectively, but also in it being perceived as an agency improving the effectiveness of union and state governments interventions for the common good. In an ideal system, even if there is no identification of under assessment of revenue, inappropriate expenditure and violation of the propriety rules for expenditure, CAG audit would still be considered quite effective if it successfully prevents the recurrence of such happenings and improves the over all credibility of government finances and transparency of its operations. It is, however, quite difficult to conceive of objective performance parameters for assessing effectiveness of such qualitative changes and economy, efficiency and effectiveness of government finances.