A performance audit is focused on evaluating the

A performance audit is primarily focused on assessing the efficiency, effectiveness, and economy of an organization's operations. Unlike compliance or financial audits, which examine adherence to regulations or financial accuracy, performance audits analyze whether an organization is achieving its objectives in the most effective manner.

Effectiveness of Operations:

Evaluates whether the organization’s activities are producing the desired results.

Measures performance against predefined goals and industry benchmarks​.

Efficiency Analysis:

Determines how well resources (labor, time, and materials) are utilized.

Identifies areas for cost reduction and process improvement.

Program and Policy Review:

Examines whether current policies and procedures are aligned with organizational objectives.

Risk Identification and Mitigation:

Identifies inefficiencies, bottlenecks, and areas where process enhancements can reduce risk​.

Quality Management in Construction Projects (Performance Audits and Operational Effectiveness)​.

QA Library All (Audit Processes and Effectiveness Assessment)​.

Key Elements of a Performance Audit:References: