As organizations, generically referred to as “quality agencies” were set up, whether by governments, institutions, or private entities, they needed an “organizing principle.” The two most common, though known by a variety of names, are accreditation and audits. Accreditation stresses the “gatekeeper” role of an external quality agency (EQA), holding higher education institutions (HEIs) to threshold requirements. An audit permits greater diversity among institutions, but therefore usually presupposes that the institution has already exceeded some known threshold. Conventionally, accreditation has become associated with accountability of the institution (to someone, for something); and an audit is associated with (further) improvement of the institution above the threshold. However, an accreditation approach by the EQA can lead to suggestions for improvement; while an audit can focus on holding the institution accountable for achieving its stated published goals.

Accreditation denotes the process or outcome of evaluating whether something, for example, an institution or program, qualifies for a certain status. The status may have implications for the institution itself (eg permission to operate) and/or its students (eg eligibility for grants) and/or its graduates (eg qualified for certain employment). In theory, the output of an accreditation is a yes/no or pass/fail decision, but gradations are possible, usually in the context of a transitional phase (toward or away from “pass”). Accreditation is also called licensing or registration.