CGAP CGAP 2

Question 1

A government auditor discovers that a department has been using petty cash funds for unauthorized purchases. Which audit procedure best addresses this finding?

Accepted Answer

Issue a formal audit finding and recommend policy training

Answer

Formal audit findings with recommendations for corrective action, including policy training, are the appropriate response to control violations.

Question 2

Under GAGAS, which of the following best describes 'significant deficiency' in internal control?

Accepted Answer

A deficiency less severe than a material weakness but important enough to merit attention by those charged with governance

Answer

A significant deficiency is less severe than a material weakness but still warrants attention from those charged with governance.

Question 3

What is the primary purpose of an attestation engagement in government auditing?

Accepted Answer

To examine and report on a subject matter or assertion made by another party

Answer

Attestation engagements involve examining, reviewing, or performing agreed-upon procedures on subject matter or assertions prepared by another party.

Question 4

Which concept requires government auditors to communicate significant matters arising during an audit even if not required by the audit's original scope?

Accepted Answer

Reporting of fraud, noncompliance, and abuse

Answer

GAGAS requires auditors to report fraud, illegal acts, violations, and abuse discovered during the engagement regardless of scope.

Question 5

A government entity receives a federal grant. Which body's standards govern the audit of federal grant expenditures?

Accepted Answer

The Office of Management and Budget's Uniform Guidance (2 CFR Part 200)

Answer

2 CFR Part 200 (Uniform Guidance) establishes audit requirements for entities expending federal awards.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

CGAP CGAP 2