An objective of a performance audit is to assess whether entities are functioning?

The correct response focuses on evaluating how well entities operate in terms of their economic and efficient usage of resources. A performance audit is specifically designed to determine whether an organization is utilizing its resources in the most efficient manner while achieving its objectives, ultimately ensuring that operations are cost-effective.

This assessment involves examining various operational aspects, including processes, procedures, and the allocation of resources, to identify areas for improvement. By concentrating on economic and efficient functioning, the audit aims to enhance organizational performance, reduce waste, and optimize resource use.

While other options touch upon important aspects like management expectations, compliance with regulations, and productivity, they do not capture the primary focus of a performance audit, which is to analyze how effectively an organization can deliver services or achieve its goals while maximizing resource utilization.