Performance audits,as defined in the GAO's Governmental Auditing Standards
A)Provide a basis for an auditor's opinion as to whether the entity is acquiring,protecting,and using its resources economically and efficiently.
B)Provide assurance that operations are in compliance with all applicable laws and regulations that may have a material effect on the financial statements.
C)Provide assurance or conclusions based on an evaluation of evidence regarding program effectiveness,economy,and efficiency; internal control compliance,and prospective analyses.D)Are always performed by the internal audit staff to assist the entity's independent auditor.

Question

Quizplus · Accepted Answer

Performance audits provide assurance or conclusions based on an evaluation of evidence regarding program effectiveness, economy, and efficiency; internal control compliance, and prospective analyses. They focus on assessing the performance of government programs and activities, and making recommendations for improvement. Options A and B describe financial audits, which focus on providing an auditor's opinion on whether the financial statements are fairly presented and in compliance with accounting principles and applicable laws and regulations. Option D is incorrect because performance audits can be conducted by both internal and external auditors.

Performance Audits,as Defined in the GAO's Governmental Auditing Standards