What typically characterizes a performance audit?

A performance audit is primarily characterized by its focus on assessing the efficiency, effectiveness, and economy of government programs and activities. This type of audit goes beyond merely examining compliance with financial regulations or concentrating exclusively on financial statements. Instead, it aims to provide insights into how well government entities are achieving their objectives and managing resources.

By evaluating whether programs accomplish their intended outcomes, performance audits highlight areas where improvements can be made, ensuring that taxpayer funds are used in the best possible manner. This emphasis on program outcomes is what distinguishes performance audits from other types of audits that may have a narrower focus, such as compliance with laws, regulations, or the accuracy of financial reporting.

This approach ultimately helps government entities become more accountable and improve their service delivery, aligning with the broader goals of transparency and effectiveness in public administration.