Performance Auditing

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  • The execution of an appraisal to determine whether a program, function, operation, or management system or the procedures of a governmental or nonprofit entity are effective, efficient, and fulfilling their objectives. While entities, specifically governmental at the federal and state levels, are sometimes required to retain external audit bodies, usually the examination may be conducted by internal auditors. The process is intended to be objective and systematic and is usually executed using structured and documented methodologies. A performance audit usually has two parts: (1) an economy and efficiency review, which determines whether resources were used efficiently, and (2) a program review, which evaluates whether resources were used for the purpose intended by the grantor of the resources.

    The typical performance audit, like all audits, has three ...

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