CGAP CGAP 3

Question 1

Which type of government audit evaluates whether a program is achieving its intended results?

Accepted Answer

Performance audit

Answer

Performance audits assess effectiveness by examining whether programs are achieving stated objectives and desired outcomes.

Question 2

Under GAGAS, continuing professional education (CPE) requirements for government auditors include at least how many hours every two years?

Accepted Answer

80 hours, with at least 24 in government auditing subjects

Answer

GAGAS requires 80 CPE hours per two-year period, with at least 24 hours directly related to the government environment or government auditing.

Question 3

Which risk is defined as the probability that a material misstatement exists in a financial statement before considering internal controls?

Accepted Answer

Inherent risk

Answer

Inherent risk is the susceptibility of an assertion to material misstatement assuming no related internal controls.

Question 4

A government auditor is reviewing a procurement process and finds that the same employee approves purchase orders and processes payments. This is an example of:

Accepted Answer

A lack of segregation of duties

Answer

Combining authorization and payment functions in one person violates the internal control principle of segregation of duties.

Question 5

What is the purpose of the Yellow Book's 'conceptual framework' for independence?

Accepted Answer

To provide a principles-based approach for identifying and evaluating threats to independence

Answer

The conceptual framework guides auditors in identifying threats, evaluating their significance, and applying safeguards rather than relying on a rules-based list.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

CGAP CGAP 3