Question

Typical objectives of a performance audit include:

A. Determining whether financial statements fairly present the entity's operational results.
B. Judging the appropriateness of an entity's program goals.
C. Determining whether financial statements fairly present in conformity with GAAP.
D. Assessing effectiveness and results, economy and efficiency, and internal controls and compliance with laws and regulations.

Answer 1

The objectives of a performance audit include assessing effectiveness and results, economy and efficiency, internal controls, and compliance with laws and regulations. Option d.

Step-by-step explanation:

A performance audit typically has several objectives, including (d) assessing effectiveness and results, economy and efficiency, and internal controls and compliance with laws and regulations. This means that the audit aims to evaluate how well an entity is achieving its goals, using its resources efficiently, maintaining internal controls, and complying with relevant laws and regulations. For example, in a performance audit of a government program, the auditor may assess whether the program has achieved its intended outcomes, whether it is cost-effective, and whether it has appropriate controls in place.