Certified Professional Public Buyer (CPPB) Practice Test

Which type of audits includes evaluations of all governmental operations?

1. Performance audits

2. Financial audits

3. Compliance audits

4. Operational audits

The correct answer is: Performance audits

Performance audits are comprehensive assessments that evaluate the efficiency, effectiveness, and economy of all government operations. They go beyond just financial records, examining how well resources are being utilized to achieve organizational goals. This type of audit assesses whether government programs are meeting their objectives and whether they are performing in a way that maximizes the return on public investment. The focus is not solely on adherence to laws or regulations, which is more the territory of compliance audits, nor is it limited to financial transactions, which is the domain of financial audits. Instead, performance audits provide valuable insights into the overall effectiveness of government operations, which is crucial for informed decision-making and accountability in public administration.