In defining the audit objectives of a performance audit, auditors should evaluate whether the audited...

Performance Audit Objectives:

Performance audits evaluate whether government entities are operating efficiently, effectively, and in compliance with applicable laws.

A critical aspect is assessing whether the entity has implementedcorrective actionsin response to prior audit findings and recommendations, as this demonstrates accountability and progress.

Explanation of Answer Choices:

A. Updated its vision and strategic mission statements: Incorrect. While strategic planning is important, it is not the primary focus of performance audit objectives.

B. Corrective actions to address prior findings and recommendations: Correct. Addressing prior findings is a key objective to ensure identified issues have been resolved.

C. Updated its financial reports’ MD&A: Incorrect. MD&A (Management’s Discussion and Analysis) is related to financial reporting, not performance audits.

D. Internal controls in place: Incorrect. While internal controls are reviewed, the focus here is on corrective actions to past findings.

References:

GAO,Government Auditing Standards (Yellow Book).

GAO,Performance Auditing Guidance.