Performance Auditing in Government Flashcards

What are the three 'E's' that define the core objectives of performance auditing in government?

Answer: Economy, Efficiency, and Effectiveness

Performance auditing in government assesses Economy (acquiring resources at the lowest cost), Efficiency (maximizing output per input), and Effectiveness (achieving intended goals).

Which set of standards primarily governs performance audits conducted in the U.S. government sector?

Answer: GAGAS (Generally Accepted Government Auditing Standards)

GAGAS, issued by the U.S. Government Accountability Office (GAO), is the authoritative standard for government performance audits, also known as the 'Yellow Book.'

In a performance audit, 'audit criteria' refers to which of the following?

Answer: The benchmarks or standards used to evaluate audit findings

Audit criteria are the reasonable and attainable benchmarks, standards, or expectations used to evaluate the program or activity being audited.

A logic model in a performance audit is best described as:

Answer: A visual representation linking program inputs, activities, outputs, and outcomes

A logic model maps how program inputs and activities are expected to produce outputs and lead to intended outcomes, helping auditors understand program design and identify audit objectives.

Which of the following best distinguishes 'outputs' from 'outcomes' in performance auditing?

Answer: Outputs are the direct products of program activities; outcomes are the results or changes attributable to those products

Outputs are the direct, tangible products of program activities (e.g., number of inspections conducted), while outcomes are the broader results or changes in conditions that the program aims to achieve.

When performing a performance audit, why is data reliability assessment critical?

Answer: It ensures that the data used as evidence is sufficiently complete, accurate, and consistent to support audit conclusions

GAGAS requires auditors to assess the reliability of data used as evidence; unreliable data can lead to flawed conclusions and undermine the validity of audit findings.

Which of the following is a key difference between a performance audit and a financial audit?

Answer: Performance audits evaluate economy, efficiency, and effectiveness of programs; financial audits provide assurance on financial statement accuracy

Financial audits focus on whether financial statements fairly present an entity's finances, while performance audits assess whether government programs achieve their goals economically, efficiently, and effectively.