Which type of audit evaluates the efficiency and effectiveness of programs or operations?

The correct choice focuses on a specific type of audit known as a performance audit. This type of audit goes beyond merely checking for compliance with laws or financial accuracy; it assesses how well an organization’s operations are functioning in terms of efficiency and effectiveness.

A performance audit examines whether resources are being used in the best possible way to achieve intended results. This includes evaluating programs to ensure that they are meeting their objectives and utilizing resources effectively. In this context, "efficiency" means doing things in a manner that minimizes waste, while "effectiveness" refers to how well a program is achieving its desired outcomes.

Performance audits can help organizations identify areas for improvement, optimize resource allocation, and enhance overall program delivery. They provide insights that assist management in making informed decisions.

In contrast, a compliance audit primarily focuses on adhering to laws and regulations, a financial audit looks at the accuracy of financial statements, and an operational audit assesses the efficiency of specific processes or functions but may not comprehensively evaluate the overall performance against established goals. Therefore, the emphasis on evaluating efficiency and effectiveness makes performance audit the most appropriate and correct answer.