What type of audit focuses on the evaluation of program performance?

A performance audit specifically examines the efficiency, effectiveness, and economy of a government's program or activity. It evaluates whether the program is achieving its intended outcomes and whether it is being implemented in the most optimal way. This type of audit answers questions about what is being accomplished, how well it is serving its purpose, and whether the resources are being used with the greatest efficiency.

In contrast, a compliance audit primarily verifies whether an entity adheres to applicable laws, regulations, and policies, while a financial audit focuses on the accuracy of financial statements and records. An operational audit, although it may overlap with performance aspects, is more centered on evaluating the internal processes and controls rather than directly assessing program performance. Thus, the focus on program performance distinctly characterizes the performance audit.