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

GAGAS requires that significant findings be reported with sufficient detail on criteria, condition, cause, and effect so that users can understand the nature and significance of the finding.

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

Economy focuses on minimizing the cost of acquiring inputs of appropriate quality, meaning the government entity avoids waste and unnecessary expenditures.

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

Physical evidence observed directly by the auditor is generally the most reliable because it is less susceptible to manipulation or misrepresentation than evidence provided by others.

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

Effectiveness measures whether a program achieves its intended outcomes; obtaining and retaining employment is the intended outcome of a job-training program.

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

GAGAS requires auditors to include the agency's written comments in the report and to evaluate and address them, noting areas of agreement or disagreement with the agency's position.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

CGAP Performance Auditing in Government 3