Certified Government Auditing Professional (CGAP) Practice Exam

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What is one of the main objectives of a performance audit?

Ensuring compliance with financial regulations.
Assessing economic efficiency and effectiveness of programs.
Measuring stakeholder satisfaction.
Evaluating the accuracy of budget forecasts.

The correct answer is: Assessing economic efficiency and effectiveness of programs.

One of the primary objectives of a performance audit is to assess the economic efficiency and effectiveness of programs. This type of audit goes beyond mere compliance or financial accuracy by focusing on whether a government program or service is achieving its intended outcomes in a cost-effective manner. Performance audits critically evaluate the use of resources, aiming to identify if the objectives set by government entities are being met in a way that maximizes value for taxpayers. Performance audits involve analyzing program operations, outcomes, and impacts, which helps to identify areas where improvements can be made. By assessing effectiveness, auditors can provide recommendations that enhance efficiency, thereby leading to better allocation of resources and improved public service delivery. This objective is crucial in ensuring accountability and transparency in government operations, ultimately fostering trust and confidence from the public. The other options, while relevant to different types of audits or assessments, do not capture the core goal of a performance audit as effectively. Compliance checks focus specifically on regulatory adherence, measuring stakeholder satisfaction is more qualitative and subjective, and budget forecast evaluations emphasize financial projection accuracy rather than program effectiveness.