GILBERT PERFORMANCE AUDIT - CLARIFYING THE NUMBERS

Thomas Gilbert (1978) indicated his performance audit was designed to be a simple and systematic set of procedures for measuring performance ; however, the primary outcome or value of the performance audit is re lated to prioritizing performance problems in terms of their relative potential for improvement (PIP) and potential value of correcting (PVC ) to a company. This article contains an analysis of the computations necessary for completing a performance audit and its associated perfor mance table. In particular, discussion focuses on the limitations of t he PIP and PVC as performance-discrepancy indices and on the derivatio n of a single formula for calculating the PVC-to replace the two separ ate computations Gilbert recommended for values and costs. Additionall y some general guidelines regarding the most appropriate or best use o f the performance audit calculations are provided.