Lesson 76 - Advanced Accounting Course

Lesson 76: Performance Audits in Government Accounting

💡 What Is a Performance Audit?

A performance audit is a special type of government audit that goes beyond just financial accuracy. It evaluates:

• ✅ Effectiveness (Are programs achieving their goals?)
  
  

• 💰 Efficiency (Are resources being used wisely?)
  
  

• ⚖️ Economy (Is spending justified and minimal?)
  
  

🧠 In simple terms: Performance audits ask, “Are we doing the right things, and are we doing them well?”

🏛️ Who Performs Performance Audits?

These audits are typically conducted by:

• 🕵️‍♂️ Government auditors (e.g., State Auditor's Office)
  
  

• 🧑‍⚖️ Supreme Audit Institutions (like the U.S. Government Accountability Office — GAO)
  
  

• 📊 Independent audit firms (for public agencies or donor-funded projects)
  
  

🎯 Objectives of Performance Audits

🧪 Types of Performance Audits

🔍 Performance Audit Process 

📊 Sample Performance Audit Table 

🧾 Differences from Financial Audits 

✅ Summary

• Performance audits help governments and nonprofits improve how they serve the public
  
  

• They evaluate not just what was spent, but what was achieved
  
  

• Focus areas include effectiveness, efficiency, and compliance
  
  

• They lead to better use of taxpayer money and more transparency