Ace the 2025 CGAP Challenge – Audit Your Way to Success!

A performance audit primarily examines how effectively a program or operation is running, emphasizing efficiency, effectiveness, and economy. This type of audit aims to assess whether an organization is achieving its intended results and if resources are being utilized in the best possible manner. It goes beyond simply checking for compliance with regulations or laws and instead evaluates whether the processes in place lead to favorable outcomes.

In performance audits, efficiency relates to how well resources are used to achieve outputs, effectiveness measures the extent to which intended objectives are met, and economy focuses on minimizing costs without compromising quality. This comprehensive approach allows auditors to provide valuable insights and recommendations aimed at improving performance, ensuring that public funds are used wisely.

The other options either mischaracterize the focus of a performance audit or omit critical analysis components. For instance, compliance with statutory regulations is more associated with compliance audits than performance audits. Focusing solely on financial audits does not capture the broader scope of performance auditing. Excluding the analysis of controls would undermine the audit's ability to assess efficiency and effectiveness fully since controls are integral to understanding how resources are managed.