CGAP Performance Auditing in Government 3

Question 1

GAGAS requires that performance audit reports include which of the following when reporting findings?

Accepted Answer

Criteria, condition, cause, and effect for each significant finding

Answer

Only positive findings to avoid damaging the agency's reputation

Answer

A complete listing of all audit procedures performed

Answer

The personal opinions of the audit team members

Question 2

In a performance audit, 'economy' is best measured by evaluating whether:

Accepted Answer

Resources were acquired and used at the lowest reasonable cost

Answer

The program achieved its intended outcomes

Answer

Outputs were maximized relative to inputs

Answer

Financial statements accurately reflect program costs

Question 3

Which type of evidence is generally considered most reliable in a performance audit?

Accepted Answer

Physical evidence observed directly by the auditor

Answer

Oral testimony from program beneficiaries

Answer

Documentation provided by program management upon request

Answer

Summaries prepared by program staff from original records

Question 4

An auditor is evaluating a government job-training program. The audit objective is to determine whether participants obtained and retained employment after completing the program. This objective primarily relates to which performance dimension?

Accepted Answer

Effectiveness

Answer

Economy

Answer

Efficiency

Answer

Compliance

Question 5

What is the auditor's responsibility regarding the agency's response to performance audit findings?

Accepted Answer

The auditor must include the agency's written comments in the report and evaluate their validity

Answer

The auditor must accept all management responses and revise findings accordingly

Answer

The auditor is not required to consider management responses

Answer

The auditor must obtain legal counsel before including agency responses

Question 6

Audit follow-up in the context of government performance auditing refers to:

Accepted Answer

Monitoring whether the audited entity implements audit recommendations within a reasonable time

Answer

Conducting a second audit on the same program within 30 days

Answer

Reporting findings directly to the legislative body without informing management

Answer

Re-testing all original audit samples to verify initial results

Question 7

When planning the scope of a performance audit, which of the following factors is most important for auditors to consider?

Accepted Answer

The risk and significance of program areas in relation to audit objectives

Answer

The personal interests of audit team members in the subject area

Answer

The time and budget available for the audit engagement

Answer

The preference of the agency's public affairs office