CGAP Performance Auditing in Government 2

Question 1

In a performance audit, the 'condition' element of a finding refers to:

Accepted Answer

The situation as it actually exists based on audit evidence

Answer

The condition is what the auditor found — the actual state of the program or activity as supported by evidence collected during the audit.

Question 2

Which statement best describes the role of 'materiality' in a government performance audit?

Accepted Answer

Auditors must consider whether findings are significant enough to affect the user's decision-making or understanding of the program

Answer

In performance audits, materiality is a judgment about whether a finding is significant enough to be reported; it encompasses both quantitative and qualitative significance relative to program objectives.

Question 3

An auditor conducting a performance audit selects a program to benchmark against similar programs in other states. This technique is called:

Accepted Answer

Benchmarking

Answer

Benchmarking compares a program's performance against similar programs, best practices, or industry standards to identify performance gaps and areas for improvement.

Question 4

Under GAGAS, which of the following represents a threat to an auditor's independence in a performance audit?

Accepted Answer

Having previously designed the internal controls being audited

Answer

Designing internal controls for an entity and then auditing those same controls creates a self-review threat to independence, which is prohibited under GAGAS unless safeguards eliminate or reduce the threat to an acceptable level.

Question 5

What is the primary purpose of an 'audit objective' in a performance audit?

Accepted Answer

To clearly state what the audit is intended to answer or accomplish

Answer

The audit objective defines the specific questions the audit is designed to answer and guides the entire audit process, including evidence collection and reporting.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

CGAP Performance Auditing in Government 2