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Difficulty: MediumPublic Sector Financial Control and Audit Procedures

A government ministry completed a major public health infrastructure project within its allocated budgetary funds. Subsequently, a team of auditors was assigned to assess whether the project achieved its intended objectives with minimal waste, evaluating the three pillars of economy, efficiency, and effectiveness. Which type of audit procedure was conducted?

  1. Performance auditAnswer
  2. B
    Regulatory audit
  3. C
    Special investigation audit
  4. D
    Internal pre-audit

Answer

Performance audit
A performance audit evaluates public sector programs or projects based on the '3 Es': Economy (minimizing resource costs), Efficiency (maximizing output from given inputs), and Effectiveness (achieving target results). This directly matches the scenario described.

Step-by-Step Solution

1
Identify the primary objective described in the scenario
The audit focuses on evaluating whether the health infrastructure project achieved its goals by assessing the 3 Es: Economy, Efficiency, and Effectiveness.
Different government audit types serve distinct statutory and operational objectives.
2
Match the 3 Es framework to the correct public sector audit classification
The audit type that measures value for money via economy, efficiency, and effectiveness is a Performance Audit.
Standard financial and compliance audits only verify transaction accuracy and legal adherence, whereas performance auditing examines operational output and value delivered.

Key Concept

Performance Audit (Value for Money Audit) in Public Sector
Estimated Time:1m 0s
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Topics

Public Sector Financial Control and Audit Procedures

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