What is a performance audit?

A performance audit is defined as an assessment that examines the performance and management of a program or agency against specific objective criteria. It evaluates whether the resources are being used efficiently and effectively to achieve the intended outcomes. The primary goal is to provide insights into how well a program is functioning, identify areas for improvement, and ensure accountability in the use of public funds.

The focus on objective criteria is crucial in establishing a standard against which the performance can be measured. This aspect ensures that the audit is based on evidence and factual data, leading to actionable recommendations for enhancing program efficiency.

In contrast, other options either misrepresent the nature of performance audits or limit their scope. While other aspects may play a role in different types of audits or assessments, option B accurately encapsulates the essence of what constitutes a performance audit.