A state government funds nursing homes operated by cities within the state. The county board is concerned because the nursing homes are experiencing significant budget overruns. The state auditor makes annual financial audits of the nursing homes. The county board requests the state auditor to also make an operational audit of the nursing homes this year to assess the efficiency and effectiveness of delivery of services. 

Required: 

a. Is the auditor independent in the audit of the financial statements of the nursing homes in accordance with generally accepted auditing standards?

b. Must the operational audit report to be issued this year comply with the GAO standards on reporting efficiency and effectiveness?

c. What performance criteria would the state auditor be likely to use in conducting the operational audit?