CGAP Auditing & Corporate Governance 2

Question 1

Which component of the COSO Internal Control Framework addresses the organization's commitment to integrity and ethical values?

Accepted Answer

Control Environment

Answer

The Control Environment is the foundation of COSO's framework and encompasses tone at the top, ethical values, and management's philosophy.

Question 2

A government audit committee's primary responsibility regarding external auditors is to:

Accepted Answer

Oversee the independence and objectivity of the external audit function

Answer

The audit committee oversees external auditor independence and objectivity to ensure credible, unbiased financial reporting.

Question 3

Under the Yellow Book (GAGAS), which type of audit opinion is issued when financial statements are fairly presented in all material respects?

Accepted Answer

Unmodified (unqualified) opinion

Answer

An unmodified opinion means auditors found no material misstatements and the financial statements conform to applicable accounting standards.

Question 4

Which governance structure is most directly responsible for setting a public entity's strategic direction and overseeing management accountability?

Accepted Answer

Governing board or legislative body

Answer

The governing board or legislative body holds ultimate authority over strategic direction and holds management accountable in public sector entities.

Question 5

When auditing government programs, the concept of 'accountability' primarily refers to:

Accepted Answer

Demonstrating that public resources are used legally, efficiently, and for intended purposes

Answer

Government accountability means demonstrating that public funds and authority are used legally, efficiently, effectively, and for their intended purposes.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

CGAP Auditing & Corporate Governance 2