Which statement best describes the scope of a performance audit for municipal programs?

Which statement best describes the scope of a performance audit for municipal programs?

• A. It focuses exclusively on financial statement accuracy.
• B. It measures staff satisfaction with programs.
• C. It assesses whether programs achieve intended results efficiently and effectively and identifies improvement opportunities.
• D. It evaluates only compliance with grant reporting requirements.

Answer: (C)

Performance audits for municipal programs examine whether a program is actually delivering the results it was designed to achieve while using resources wisely. They focus on both effectiveness (are the intended outcomes and services being realized?) and efficiency/economy (are time, money, and personnel being used in a way that minimizes waste) and look for concrete improvement opportunities. This broad scope often involves checking performance indicators, comparing against benchmarks, and recommending changes to program design, implementation, or controls to boost future results. The other options miss this broader aim: financial statement accuracy is the realm of financial audits; measuring staff satisfaction tends to reflect internal sentiment rather than program outcomes; and focusing solely on grant reporting compliance centers on rules rather than overall program performance.

Performance audits for municipal programs examine whether a program is actually delivering the results it was designed to achieve while using resources wisely. They focus on both effectiveness (are the intended outcomes and services being realized?) and efficiency/economy (are time, money, and personnel being used in a way that minimizes waste) and look for concrete improvement opportunities. This broad scope often involves checking performance indicators, comparing against benchmarks, and recommending changes to program design, implementation, or controls to boost future results. The other options miss this broader aim: financial statement accuracy is the realm of financial audits; measuring staff satisfaction tends to reflect internal sentiment rather than program outcomes; and focusing solely on grant reporting compliance centers on rules rather than overall program performance.