What are the two types of Performance Audits?

What are the two types of Performance Audits?

• A. Economy and Effectiveness
• B. Economy and Effectiveness; Program
• C. Economy and Efficiency
• D. Program

Answer: (C)

Performance audits focus on how resources are obtained and how they are used. Economy means securing resources at the lowest achievable cost and with minimal waste in the acquisition process. Efficiency means using those resources in a way that maximizes outputs or results relative to inputs, aiming for productive, well‑organized operations. Together, these two areas show whether an organization obtains resources economically and utilizes them efficiently to achieve its goals. The other ideas shown relate to the scope or outcomes rather than the audit type: program describes what is being audited, and effectiveness concerns whether objectives are achieved.

Performance audits focus on how resources are obtained and how they are used. Economy means securing resources at the lowest achievable cost and with minimal waste in the acquisition process. Efficiency means using those resources in a way that maximizes outputs or results relative to inputs, aiming for productive, well‑organized operations. Together, these two areas show whether an organization obtains resources economically and utilizes them efficiently to achieve its goals. The other ideas shown relate to the scope or outcomes rather than the audit type: program describes what is being audited, and effectiveness concerns whether objectives are achieved.