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The next section is devoted to the role govern- ment officials need to play in managing the fi- nancial statement audit. This role extends all the way from the procurement of audit services to the monitoring of auditor performance. This sec- tion also deals with the issue of the length of au- dit contracts and auditor rotation, as well as the role and function of the audit committee. Performance auditing, internal auditing, and f - nancial integrity legislation are the subject of the remaining three sections of this booklet. Auditing terms and acronyms are explained the first time that they appear in the text. Also, a glossary of all of the auditing terms and acro- nyms used in the text can be found at the back of the booklet. xii PERFORMANCE AUDITING What is "performance auditing"? In a performance audit, the auditor seeks an- swers to one or both of the following questions. • Is management performing its duties economi- cally and efficiently? • Are programs achieving their intended pur- pose? The term operational auditing is also often ap- plied to performance auditing, although the term operational auditing is more common in the pri- vate sector than in the public sector. TO AUDITING 49