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

Question

Quizplus · Accepted Answer

The typical objective of a performance audit is to make recommendations for improving performance, which is accomplished through evaluating the entity's operations and identifying areas for improvement. Options A and D deal with financial reporting and profit maximization, which are not the primary focus of a performance audit. Option B is closer to the objective of a feasibility study, but still does not capture the main purpose of a performance audit, which is to identify areas for improvement.

A Typical Objective of a Performance Audit Is for the Auditor