CGAP Performance Auditing in Government

Question 1

What are the three 'E's' that define the core objectives of performance auditing in government?

Accepted Answer

Economy, Efficiency, and Effectiveness

Answer

Equity, Ethics, and Evaluation

Answer

Execution, Expenditure, and Examination

Answer

Enforcement, Evidence, and Engagement

Question 2

Which set of standards primarily governs performance audits conducted in the U.S. government sector?

Accepted Answer

GAGAS (Generally Accepted Government Auditing Standards)

Answer

GAAS (Generally Accepted Auditing Standards)

Answer

PCAOB Auditing Standards

Answer

IIA International Standards for the Professional Practice of Internal Auditing

Question 3

In a performance audit, 'audit criteria' refers to which of the following?

Accepted Answer

The benchmarks or standards used to evaluate audit findings

Answer

The monetary thresholds that trigger an audit

Answer

The list of documents the auditor must collect

Answer

The timeline for completing audit fieldwork

Question 4

A logic model in a performance audit is best described as:

Accepted Answer

A visual representation linking program inputs, activities, outputs, and outcomes

Answer

A flowchart of the auditor's internal decision-making process

Answer

A statistical model used to test data reliability

Answer

A diagram of the government entity's organizational structure

Question 5

Which of the following best distinguishes 'outputs' from 'outcomes' in performance auditing?

Accepted Answer

Outputs are the direct products of program activities; outcomes are the results or changes attributable to those products

Answer

Outputs measure long-term impact; outcomes measure immediate products

Answer

Outputs are financial results; outcomes are non-financial results

Answer

Outputs require external validation; outcomes do not

Question 6

When performing a performance audit, why is data reliability assessment critical?

Accepted Answer

It ensures that the data used as evidence is sufficiently complete, accurate, and consistent to support audit conclusions

Answer

It determines which auditing standards apply to the engagement

Answer

It establishes the audit fee structure

Answer

It identifies potential conflicts of interest among program staff

Question 7

Which of the following is a key difference between a performance audit and a financial audit?

Accepted Answer

Performance audits evaluate economy, efficiency, and effectiveness of programs; financial audits provide assurance on financial statement accuracy

Answer

Financial audits examine program effectiveness; performance audits only review financial statements

Answer

Performance audits are voluntary; financial audits are always mandatory

Answer

Financial audits use qualitative methods; performance audits use only quantitative methods