A typical objective of a performance audit is to determine whether an entity's:
A) financial statements fairly present the results of operations.
B) operational information is in accordance with generally accepted government auditing standards.
C) specific operating units are functioning efficiently and effectively.
D) internal control is adequately operating as designed.

Question

Quizplus · Accepted Answer

Performance audits assess whether an entity's programs, activities, or functions are achieving their objectives efficiently, effectively, and economically. Therefore, the typical objective of a performance audit is to determine whether specific operating units are functioning efficiently and effectively. Choice A pertains to a financial audit, Choice B pertains to a compliance audit, and Choice D pertains to an internal control audit.

A Typical Objective of a Performance Audit Is to Determine