Which type of audit evaluates management effectiveness and operational efficiency?

A performance audit specifically focuses on evaluating management effectiveness and operational efficiency within an organization. This type of audit assesses how well an organization is achieving its objectives and whether it is utilizing its resources effectively. It examines the processes, programs, and outcomes to determine if operations are being carried out efficiently and if the management strategies in place are achieving the desired results.

In contrast, a compliance audit primarily ensures that an organization adheres to laws, regulations, and internal policies. A financial audit, on the other hand, focuses on assessing the accuracy of financial statements and transactions. Lastly, while an operational audit may address procedures and practices, it generally does not emphasize the management effectiveness aspect to the same degree as a performance audit does. Thus, the characteristics of a performance audit align closely with the evaluation of management effectiveness and operational efficiency.