Performance/operational audits are engagements that provide assurance based on an evaluation of sufficient, appropriate evidence against stated criteria, such as specific requirements, measures, or defined business practices.  Performance audits provide objective analysis so that management and those charged with governance and oversight can use the information to improve program performance and operations, reduce costs, facilitate decision making, and contribute to public accountability.  Performance audit objectives may vary widely and include assessments of program effectiveness, economy, and efficiency; internal control; compliance; and prospective analyses.  Examples of audit objectives in these categories include:

• assessing the extent to which legislative, regulatory, or organizational goals and objectives are being achieved;
• determining whether a program produced intended results or produced results that were not consistent with the program's objectives;
• evaluating whether the audited entity is following sound procurement practices;
• determining whether incurred or proposed costs are in compliance with applicable laws, regulations, and contracts or grant agreements;
• assessing whether the purpose of the program, the manner in which it is to be conducted, the services delivered, the outcomes, or the population it serves is in compliance with laws, regulations, contract provisions, grant agreements, and other requirements.