Performance audits focus on which of the following?

Performance audits are designed to assess not just the financial aspects of an organization, but primarily the efficiency, effectiveness, and economy of specific programs or operations. These audits evaluate whether programs are being implemented as planned, whether they achieve their intended outcomes, and if resources are being used wisely. The goal is to enhance the performance of government entities by identifying areas for improvement and ensuring that taxpayer funds are utilized effectively.

The focus on efficiency means looking at whether resources are being used in a manner that minimizes waste and maximizes output. Effectiveness involves determining if the programs are meeting their intended goals and producing the desired results. This comprehensive approach allows auditors to provide valuable insights that help governmental entities improve their operations and service delivery.

While financial statement accuracy, compliance with regulations, and internal control systems are important elements of governance and accountability in their own rights, they are more closely associated with financial audits and compliance audits rather than the specific focus of performance audits. Performance audits take a broader view, emphasizing outcomes and program performance rather than just financial metrics or regulatory adherence.