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 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
3. In government auditing, 'materiality' for a compliance audit is typically determined based on: → Quantitative and qualitative factors related to the specific law or regulation
4. Auditors are likely to when preliminary control risk evaluations are set to high: → Complete little or no tests of controls.
5. 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
6. 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
7. The audit, which is not mandated by law but is carried out at the request of owners, is referred to as: → Private audit.
8. Under the Yellow Book, which standard requires auditors to report all known or likely fraud affecting the financial statements? → Reporting standards
9. 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.
10. 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.
11. A government entity's risk assessment process should update identified risks when: → Whenever significant changes in the environment, operations, or personnel occur
12. The auditor must do all of the activities listed below with the exception of: → Identify all general IT controls.
13. Regular auditing is also known as . → Balance sheet audit.
14. 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
15. Which governance body characteristic MOST supports audit committee effectiveness in a public sector entity? → Members have financial expertise and serve independently from management
16. This type of audit is typically undertaken between two annual audits _______ . → Interim audit.
17. Which type of budget is most commonly adopted by state and local governments and carries legal authority to spend? → Appropriated budget
18. A company's internal auditor must be _________ . → Cost accountant.
19. In government budgeting, what is an 'obligation'? → A legally binding commitment that will require future outlays
20. A government audit committee's primary responsibility regarding external auditors is to: → Oversee the independence and objectivity of the external audit function
21. Which federal act requires agencies to produce audited financial statements and links performance to budget? → Chief Financial Officers Act of 1990
22. Which of the following is referenced by the term "ESG" in the context of corporate governance? → environmental, social, and governance
23. What does the Schedule of Expenditures of Federal Awards (SEFA) report? → All federal awards expended by a non-federal entity during the audit period
24. When no auditor is appointed or reappointed at a company's annual general meeting. If so, then → the central government appoints a person to fill the vacancy
25. A thorough investigation of a company's books and records is called a . → Auditing
26. Where _____ ends, auditing begins. → Accounting
27. During a CGAP audit, an auditor identifies a transaction that is legal but appears to conflict with the entity's code of ethics. The auditor should: → Document and report it as a governance concern to appropriate oversight
28. Which government-wide regulation governs the procurement of goods and services by federal agencies? → Federal Acquisition Regulation (FAR)
29. The company's owners go by the name of _______ . → Shareholders
30. Under GASB standards, which measurement focus is used for governmental funds? → Current financial resources measurement focus