Performance audits review all the operations of a governmental unit.

Performance audits review all the operations of a governmental unit.

• A. All financial transactions
• B. All operations of a governmental unit
• C. Only procurement
• D. Only compliance

Answer: (B)

Performance audits look at how well a government unit uses its resources to achieve its objectives, focusing on economy, efficiency, and effectiveness across programs and operations. Because of this broad aim, the audit scope covers the unit’s overall operations rather than just a narrow area or a single type of data. This is why the best description is that performance audits review all operations of a governmental unit. If you think about other types of audits, a focus on financial transactions is typical of financial audits, which concentrate on accounting accuracy and financial statements. Focusing only on procurement narrows the view to a single activity within operations. A focus on compliance would assess adherence to laws and regulations, not whether programs meet their goals or use resources well.

Performance audits look at how well a government unit uses its resources to achieve its objectives, focusing on economy, efficiency, and effectiveness across programs and operations. Because of this broad aim, the audit scope covers the unit’s overall operations rather than just a narrow area or a single type of data. This is why the best description is that performance audits review all operations of a governmental unit.

If you think about other types of audits, a focus on financial transactions is typical of financial audits, which concentrate on accounting accuracy and financial statements. Focusing only on procurement narrows the view to a single activity within operations. A focus on compliance would assess adherence to laws and regulations, not whether programs meet their goals or use resources well.