What is meant by economy efficiency and effectiveness in relation to a performance audit?

Economic efficiency in a performance audit refers to the optimal use of resources to achieve desired outcomes, ensuring that inputs are minimized while outputs are maximized. Effectiveness, on the other hand, assesses whether the intended goals and objectives of a program or operation are being met. Together, these concepts help auditors evaluate not only how well resources are utilized but also the relevance and impact of the activities being audited. Ultimately, both aspects aim to enhance accountability and improve overall performance.