A typical objective of a performance audit is for the auditor to:
A) determine whether the financial statements fairly present the entity's operations.
B) make recommendations for improving operational performance.
C) report on the entity's relative success in attaining profit maximisation.
D) evaluate the feasibility of attaining the entity's operational objectives.

Question

Quizplus · Accepted Answer

A performance audit focuses on evaluating the effectiveness, efficiency, and economy of an entity's operations. Therefore, the most appropriate objective of a performance audit is to make recommendations for improving operational performance. Options A, C, and D may be relevant in other types of audits, but not in a performance audit.

A Typical Objective of a Performance Audit Is for the Auditor