Performance auditing is an effective tool in the process of assessing money management and public assets. This study is a complex examination of the theoretical and applied aspects of performance auditing, in order to identify existing problems and substantiate the priority directions for improving its implementation, in order to determine whether a program / entity or activity has been managed based on the principles of economy, efficiency, and effectiveness. In order to achieve the established goals, the author applied research methods, such as: quantitative and qualitative; inductive and deductive; comparative method, methods of analysis and synthesis. In the author's view, in order to strengthen its role as an effective tool for increasing the efficiency and effectiveness of the use of public money, performance auditing must be based on the rules that require its independence, objectivity and full trust from both audited entities and society.