Performance audit refers to an independent examination of a program, function, operation or the management systems and procedures of a governmental or non-profit entity to assess whether the entity is achieving economy, efficiency and effectiveness in the employment of available resources.
[1] The examination is objective and systematic, generally using structured and professionally adopted methodologies.
Similarly, the European Court of Auditors (ECA) has developed a performance audit methodology for its audits of the sound financial management of the European Commission and the programmes funded through the EU budget.
However, some national governments require agencies, departments and branches to periodically retain outside auditors to conduct them.
In addition, performance measurement may include a broad variety of activities that do not meet the rigour of an independent external assessment.