What is the difference between an audit and an evaluation?

An audit is a systematic review of financial records, compliance with laws, or operational processes, often conducted to ensure accuracy and accountability. In contrast, an evaluation assesses the effectiveness, efficiency, and impact of a program or project, focusing on outcomes and performance rather than compliance. While audits emphasize adherence to standards and regulations, evaluations aim to provide insights for decision-making and improvement. Both processes serve distinct purposes in organizational oversight and development.