Performance audit in the public and non-public sector

Introduction. In modern conditions, performance audit is becoming an important tool for assessing the activities of both public and private enterprises. Its primary goal is to analyze the use of resources, economy, efficiency, and effectiveness of processes. Problem Statement. The lack of clear methodological approaches and legislative regulations for conducting performance audit in the private sector, as well as their limitations in the public sector, creates obstacles to the effective implementation of such audit Purpose. To justify the necessity of conducting performance audits in non-governmental sector enterprises and to develop proposals for an updated methodological framework for this type of audit, considering the growing demand of stakeholders for evaluating efficiency in both private and public economic sectors. Methods. The study used the method of induction and deduction, comparative analysis methods, a generalization of regulatory documents as well as a synthesis and analysis of international standards. Results. The justification for expanding the concept of performance audit is provided by incorporating non-financial assessment criteria into the traditional “3E” framework (economy, efficiency, effectiveness). It is recommended that the formation of evaluation indicators be carried out depending on the role of such an audit: as part of a financial statement audit, an integrated reporting audit, and an independent audit. Conclusions. The methodological framework for performance audit requires modernization. The reliance on international performance audit standards does not allow for a comprehensive assessment of efficiency, not only for private sector enterprises but also for state-owned enterprises. The article formulates methodological recommendations for evaluating enterprise efficiency depending on the specifics of the audit. Further research should focus on developing unified performance audit standards for the private sector and improving such standards for the public sector.