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A Major Difficulty in Performance Auditing Is Deciding on Specific

question 17

Essay

A major difficulty in performance auditing is deciding on specific criteria for evaluating whether efficiency and effectiveness have occurred.Discuss two other sources of criteria that the operational auditor can use.


Definitions:

Investment Project

A planned set of capital expenditures and activities aimed at generating future benefits or returns.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Loanable Funds

The funds available within an economy for borrowing, influencing interest rates and capital availability.

Interest Rate

Fees assessed by a lending party on a borrowing party for asset usage, expressed in terms of the principal's percentage.

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