CGAP Cheat Sheet 2026

The 30 highest-yield CGAP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. The auditor is required to provide a report on the accounts they examined. → to the shareholders.
2. A government auditor uses stratified sampling to test grant disbursements. The primary advantage of this approach is: → It allows more efficient coverage of high-risk strata
3. A CGAP candidate is reviewing a government entity's charter. Which element is MOST critical to ensure the internal audit function has appropriate authority? → Unrestricted access to records, personnel, and physical properties
4. Which COSO ERM 2017 component includes 'Performance' as a key area where risk is identified, assessed, and prioritized in relation to risk appetite? → Performance
5. Which type of sampling is most appropriate when the auditor wants every item in the population to have an equal chance of selection? → Simple random sampling
6. When planning a performance audit, which element is established first? → Audit objectives
7. In government auditing, 'materiality' for a compliance audit is typically determined based on: → Quantitative and qualitative factors related to the specific law or regulation
8. Auditors are likely to when preliminary control risk evaluations are set to high: → Complete little or no tests of controls.
9. Under GASB standards, which basis of accounting is used for governmental funds? → Modified accrual basis
10. Under the Yellow Book framework, which of the following is considered an element common to both financial audits and performance audits? → Both require auditors to maintain independence and follow ethical standards
11. Under GASB 34, which statement is required as part of the government-wide financial statements? → Statement of net position
12. A CGAP candidate reviews a government's capital project fund. Which of the following transactions would NOT typically be recorded in a capital project fund? → Routine maintenance expenses for an existing road
13. What is the role of a 'whistleblower protection' program in government fraud prevention? → To encourage employees to report suspected fraud by protecting them from retaliation
14. The audit, which is not mandated by law but is carried out at the request of owners, is referred to as: → Private audit.
15. Under the Yellow Book, which standard requires auditors to report all known or likely fraud affecting the financial statements? → Reporting standards
16. Auditors learn about internal control of an entity primarily for the following reasons: → Determining the nature, extent and timing of subsequent audit procedures to be performed.
17. The easiest way to guarantee the auditor will have which of the following is to utilize an audit engagement letter? → Access to all books, accounts and vouchers required for audit purpose.
18. A government entity's risk assessment process should update identified risks when: → Whenever significant changes in the environment, operations, or personnel occur
19. The auditor must do all of the activities listed below with the exception of: → Identify all general IT controls.
20. Under GAGAS, which of the following represents a threat to an auditor's independence in a performance audit? → Having previously designed the internal controls being audited
21. In a single audit under 2 CFR Part 200, what threshold of federal expenditures triggers the audit requirement? → $750,000 in federal expenditures in a fiscal year
22. Regular auditing is also known as . → Balance sheet audit.
23. An auditor conducting a performance audit selects a program to benchmark against similar programs in other states. This technique is called: → Benchmarking
24. Which key risk indicator (KRI) characteristic makes it most useful for proactive risk management in a government audit context? → It provides a leading signal before a risk event materializes
25. When planning the scope of a performance audit, which of the following factors is most important for auditors to consider? → The risk and significance of program areas in relation to audit objectives
26. Which ethical principle requires a CGAP auditor to avoid situations where personal relationships could compromise audit judgment? → Independence
27. Which governance body characteristic MOST supports audit committee effectiveness in a public sector entity? → Members have financial expertise and serve independently from management
28. This type of audit is typically undertaken between two annual audits _______ . → Interim audit.
29. Which risk treatment option involves transferring risk exposure to a third party, such as through insurance or outsourcing? → Risk sharing
30. Which type of budget is most commonly adopted by state and local governments and carries legal authority to spend? → Appropriated budget