A performance audit is an independent, objective, and systematic assessment of how well the government is managing its activities, responsibilities, and resources. It focuses on evaluating the economy, efficiency and effectiveness of the organisations' operations so as to so as to provide management with information on the extent to which its strategic objectives are being carried out and whether or not they can be improved on.

The scope of the audit surpasses the verification of financial controls or compliance with policies as it looks for the existence of five main categories of management measures which are policy, planning, organisation, coordination and monitoring. Performance auditing requires flexibility, imagination and analytical skills to provide organisations with innovative solutions and new ideas.

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