A performance audit:
A) determines whether specific provisions are being complied with.
B) reviews operating procedures and methods.
C) evaluates the client's business strategies and processes.
D) determines whether financial statements are in accordance with accounting standards.

Question

Quizplus · Accepted Answer

A performance audit reviews operating procedures and methods to evaluate the effectiveness and efficiency of the organization's processes. It may also identify areas for improvement and make recommendations for enhancing operations. The other choices are not applicable to a performance audit - A pertains to a compliance audit, C pertains to a strategic management audit, and D pertains to a financial statement audit.

A Performance Audit